I’m starting a dedicated thread for Aallon Group. The company is planning to list on the First North list. The company has released a self-produced video introducing themselves 
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Smells like it’s going on the indie watchlist 
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Would this be my first IPO I’d participate in 
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Aalto Group doesn’t have its own software sold to customers, right?
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I haven’t looked into it more closely. There isn’t more detailed information on their website either. However, they offer digital financial management services, and there was no mention of the financial management software used. So, it’s unlikely to be their own. I guess I’ll have to take back my words a bit.
But if it turns out that Aallon Group is a traditional accounting firm without its own products or innovations, then it seems to be facing a rather rocky road in a digitalizing environment where economies of scale will become even more pronounced.
Aallon Group apparently saw 6 smaller accounting firms merge into a larger one last year. And now they’re immediately listing on the stock exchange. No one can yet say how this whole entity will start rolling. The CEO also boasts in a video that the company offers all financial management services and acts as a “personal physician” for financial management. They are seeking money for inorganic growth as well. So, will they be buying small, dying accounting firms?
Somehow, I’m not convinced at all. Even though I’m generally skeptical about everything (:D), I’m definitely going to skip this one.
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Interesting case, if the valuation is moderate. I would like a little more detailed information about the operating methods, on the basis of which I could consider it.
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Completely agree.
Here’s their press release on the matter.
At least they boast: “Efficient digital processes enable economies of scale and cost-effectiveness.”
Usually, only the seller knows better than the buyer how things really are 
The positive thing is that “Our company is wholly owned by key personnel, and none of the shareholders are selling their shares in connection with the offering.”
I tried to gather information on these “merged accounting firms” and their financial data.
It seems to have gone quite well, the question is, is this a case of too many cooks spoiling the broth? How will the merger of all these succeed? Is this a bit like a “mini-Nordea” and its IT project…? Well, hopefully, they will list at a reasonable price, since they are not selling their own holdings…
Now, it’s important to remember that in small businesses, entrepreneurs often don’t take a salary but rather receive their money as dividends. Therefore, the companies’ results are not comparable after a merger. Thus, a merger is unlikely to yield any savings in terms of results due to the reason mentioned above.
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Thanks for the info 
This might not be relevant to this specific case, but a small business owner should definitely take a salary at least up to the point where the tax rate is below ~26% (45k?). That “affordable” dividend, you see, you have to fully account for that 26%, and even that has an upper limit, which is 8% of net assets.
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The marginal income tax rate is essential, not the overall tax rate.
Essential or not, most small business owners also draw a salary.
@Verneri_Pulkkinen @Yu_Gong Will the Aalto Group company presentation event be available as a recording later on Inderes’ website?
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Alrighty then! There will also be a live webcast, the link will be published later.
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I can comment on this. An entrepreneur’s tax percentage seems to be determined pretty much by the amount of YEL (entrepreneur’s pension insurance) payments they make. For example, I have a salary of 48k and my tax percentage is probably around 25.5%.
It’s certainly worth raising your salary in this way if the company is otherwise profitable, as the company would otherwise pay 20% corporate tax and 8% of distributable funds can be withdrawn with a 7.5% tax.
From this, you can calculate that if you pay yourself an appropriate salary, it will be roughly equivalent to corporate tax + dividend taxation (but it will accrue some kind of pension, if you believe in pensions).
So the YEL (pension insurance for entrepreneurs) that I pay practically determines the tax percentage. I have a much lower tax percentage than my employee who has TYEL (pension insurance for employees) and a lower salary. But if I don’t pay myself a salary, it means more profit for the company = corporate tax + other taxes. Now, the company doesn’t make a profit from this portion, as it is an expense.
one could of course pay for even smaller yeli..
The entrepreneur doesn’t pay YEL (Finnish self-employed persons’ pension insurance), the company does. Its size is determined by the entrepreneur’s declared annual income. You’re getting a bit muddled up now.
I wouldn’t be entirely sure, but YEL (entrepreneur’s pension insurance) can be pretty much anything, I guess? At least I’ve paid my salary (so that 48k after taxes in hand) from the company and taxes from the company to the tax authorities. I consulted an accounting firm. I always pay my salary for the whole year at once in January, so I only have to pay for payroll once a year and get the money in hand right at the beginning of the year.