Growth Transformation
Trashed spinoff with horrible trailing numbers - or an emerging growth story?
New CEO built a one-man business to a “substantial nine figure” sale
Extensive track record of growing businesses through tuck-in, value-accretive M&A and then selling them to larger competitors
Plan is to tap into market-leading brand, grow “hidden gem” segment nationally, expand into adjacent, less cyclical business lines
~$90 million in net cash, sub $175 million market cap, ~$70 million Enterprise Value
If growth evolution works I see substantial multi-bagger potential
I have taken a “starter” position with a plan to add materially if the investment case is further confirmed