With the new CEO, Aallon Group has built its own team responsible for mergers and acquisitions, which negotiates, finalizes, and integrates these deals. To my understanding, no new recruitments have been made for this, but rather internal role changes. These were also mentioned in the H1 report:
So nowadays, the CEO is not primarily handling these deals alone, getting their hands dirty. Aallon, however, already has a strong presence in every major city, and local players surely know the other local offices very well. It is often from this level that preliminary M&A explorations begin.
Discussions about Aallon and its share price development are quiet. I wonder if this is going anywhere or if it will just languish forever around the âŹ10-10.5 mark? I have gradually increased my position over the years, and it is the fifth largest stock in my portfolio, with a weight of about 4% of the total portfolio. @Atte_Riikola, is there a new report on Aallon coming at some point?
A new report will be released at the latest in connection with the February financial statements, unless any larger acquisitions occur in the meantime. But in itself, Aallon Groupâs performance is quiet and steady. In my view, the situation for the company remains similar to before: Finlandâs weak economic outlook is dampening organic growth in the short term, but through acquisitions, the companyâs growth pace is quite brisk. According to our forecasts, growth for 2025 would be around 16%.
In connection with the financial statements, of particular interest will be the development of the companyâs profitability and how the organizational restructuring carried out last year has affected it. At the same time, the company merged subsidiaries, which should make running the groupâs administration more efficient in the future. The foundations for organic earnings growth in the coming years are therefore strengthening as the company seeks more efficiency from its own operations and, presumably, the Finnish economy will provide at least a slight tailwind for growth at some point. I understand there are still plenty of potential acquisition targets in the market.
Based on our forecasts, Aallon Groupâs adjusted P/E ratio for this year is around 10x, so expectations are very modest, provided that earnings development continues to move gradually in the right direction. In other words, if earnings grow in the coming years, I would be very surprised if the stock continued to hover at its current level.
The acquisition targets are certainly getting small. It would be interesting to see how many of the customers of an outfit like this have stayed on board after, say, three years..
Thatâs probably the first acquisition in Vantaa. The intention is likely to acquire all the small offices in the area. Theyâve had a high pace of acquisitions up until now as well.
More acquisitions. Approx. ~1% of Aallonâs revenue.
Tekodo Oyâs business operations will become part of Aallon Group starting February 1, 2026. The purchase price will be paid in cash.
Tekodo Oyâs revenue for the financial year ended December 31, 2024, was approximately 356 thousand euros. According to a preliminary unaudited estimate, the revenue for the financial year ending December 31, 2025, is approximately 437 thousand euros. At the time of the transaction, the acquired entity employs six professionals in addition to the two entrepreneurs. All eight individuals will continue serving their clients as part of Aallon Group.
Regarding these reported employee counts in general: Typically, these report everyone on the companyâs payroll, meaning for example employees on parental leave or part-time staff. Therefore, completely direct conclusions regarding the revenue/employee figure cannot be drawn based on that reported headcount.
Hello, revenue / person 54k !!! Total profit for this firm over the last three financial years is 11k euros? What is the point of buying these kinds of little outfits. It will lead to nothing but integration problems. Profit doesnât come just by throwing the company into the same premises. A strangely weak showing.
After Atteâs message, you probably realized that all eight people are not necessarily full-time resources, so could you tell the rest of us how you concluded they actually are, since you decided to publish the aforementioned calculation anyway?
According to the financial statement data, in 2024 there were four employees with a revenue of âŹ356,000, which is already 10% better revenue/person productivity than Aalto Group itself. So I wouldnât worry about the targetâs inefficiency at this stage. At a quick glance, something has been done right at Tekodo as the business has been effectively grown in recent years.
For this year, new revenue has already been bought in excess of GDP growth forecasts
The phrase âemploys six professionals in addition to two entrepreneurs.â This is what I based my opinion on. I assume part-time employees are calculated according to FTE? I was mainly concerned about the results of the previous financial years. Of course, there can be many factors involved that arenât apparent from the figures, making the assessment challenging.
