Acquisition Unlock: €210m in 5 Years

So basically what we do is there's four pillars. So when we look at our strategy, it's very simple. Pillar one is M and A.

We acquired these outsourced transactional printing businesses. Pillar two is we onboard them onto our digital platform. So we call that tech enablement.

More about that, Nick. Well, the valuation improvements.

So very simply, you know, a printing business is valued in a certain way and you know, it's discounted because it's print versus, you know, a software SaaS business and a digital communication business due to the fact that it's technology would, you know, naturally receive a much higher valuation than a printing business.

So ultimately what we're trying to do is take the businesses that we buy from one side of the spectrum, so the print side and move them along to the other end of the spectrum, which is digitization. So we can benefit from the arbitrage between the multiple that we buy at, the combined multiple that the overall business will be valued at because ultimately the Businesses we're buying are…

They just have a very limited set of communication channels that they offer to their customers, that is printing and mailing a letter. So we're just offering their customers more digital communication options. And by virtue of that fact, we can take a print contract and turn it into a predominantly digital contract.

And, you know, that has pretty significant valuation improvements on the business. And we've heard you say that you were buying the print businesses for 5x, less than 5x. And so for every dollar of EBITDA that you're acquiring, for 5ishx, if you can convert that dollar of EBITDA to digital, it will trade for a lot more.

And there's arbitrage right there. Yeah, let's say closer to 10. Closer to 10. So just converting a dollar of EBITDA from the print end of the spectrum to the digital end of the spectrum call it, doubles the value of that dollar of Ebitda.

Yes. It's easier said than done, right? It sounds like. It sounds like an infinite money glitch, but it's. It's not. Right. It's. It's easier said than done.

But if, if executed on. Yes, that's. That's exactly it. Like, if I could wave a magic wand and if I could take a business that we've bought for 5x EBIT or less and convert 100% to digital, which will never happen, the valuation would probably be worth even more than 10. It's. The 10 is because it's a blend of both.

But, yes, that's. That's essentially what we're. What we're trying to do.