# The Named Universe ## Roughly 300 companies worldwide; these are the ones REQ names REQ's caveat, reproduced: *"The universe of acquisition-driven compounders comprises around 300 companies worldwide; however, not every company aligns with our preferred criteria for consideration"* (REQ, Jul 2025, p.39–40). Inclusion below is **not** an endorsement — REQ is explicitly wary of centralised specialists in narrow verticals. ## The track records that opened the deck (p.5) | Company | Total return | CAGR | Listed | | --- | --- | --- | --- | | Bergman & Beving (incl. spin-offs) | **7,500×** | 20% | 1976 | | Heico | 1,100× | 22% | 1990 | | Constellation Software | 375× | **37%** | 2006 | | Addtech | 210× | 26% | 2001 | | Ametek | 175× | 16% | 1990 | | Lagercrantz | 120× | 23% | 2001 | | Judges Scientific | 115× | 24% | 2003 | | Indutrade | 50× | 22% | 2005 | | Lifco | 21× | **33%** | 2014 | ## Nordic universe (p.39) **Specialists** — Bravida · Exsitec · Fasadgruppen · Green Landscaping · Hexatronic · Hexpol · Instalco · ISS · Knowit · Lindab · Norconsult · Nordic Waterproofing · Norva 24 · Sweco · Rejlers · Systemair · Wall to Wall Group · Addnode · Afry · Beijer Ref · Bufab · Christian Berner · Boreo · Karnov Group · NCAB · Nibe · Omda · Schibsted · Swedencare · Sdiptech · OEM International · Vimian **Generalists** — AQ Group · Addvise · Atlas Copco · Beijer Alma · Idun Industrier · Indutrade · Seafire · Humble Group · Teqnion · Lagercrantz · Medcap · Lifco · Momentum Group · Storskogen · Volati · Vitec · Xano Industrier · Addtech · Addlife · Bergman & Beving ## Global universe (p.40) **Specialists** — Brown & Brown · Kelly Partners · Boyd Group · Ferguson · Ashtead · Rollins · Waste Management · POOLCORP · SiteOne Landscape Supply · Keywords Studios · Watsco · CDW · Thermo Fisher · Nemetschek · OneWater Marine · LVMH · TerraVest Industries · Perimeter Solutions · IDEX · Wolters Kluwer · Ametek · Dassault Systèmes · Eurofins Scientific · AutoNation · Berry Global · Dentalcorp · HireQuest · Constellation Software · IMCD · DCC · Zigexn · Novanta · Comfort Systems · Alimentation Couche-Tard · TopBuild · Tyler Technologies · DiscoverIE · SeSa · Reply · Bunzl · Lumine Group **Generalists** — Diploma · Halma · Ansys · Heico · Atkore · SDI Group · Converge Technology Solutions · Fastenal · Interpump · Chapters Group · TransDigm · Judges Scientific · Roper Technologies · CSW Industrials · Topicus · Epsilon Net · Nordson · Danaher · Software Circle · Sygnity · Amphenol > [!note] The overlap with your existing book > Several names here already sit in your own framework as digital tollbooths or serial acquirers — **Roper Technologies, TransDigm, Amphenol, Topicus, Constellation Software**. Same companies, arrived at from a different direction. See [[Quality Compounders]]. ## Why this universe outperforms Of the **best 30 Nordic stocks over 20 years, 13 (43%) are acquisition-driven compounders**; over 10 years, 10 of 30 (33%) (p.26). | Index, 2005 → 2025 | CAGR | | --- | --- | | Nordic acquisition-driven compounders | **17.9%** (up ~40×) | | OMX All-Share Sweden | 10.9% | | MSCI World | 7.3% | | Berkshire Hathaway | 6.5% (up 8.3×) | | Index, 2005 → 2025 | CAGR | | --- | --- | | Global acquisition-driven compounders | **16.6%** (up ~23×) | | S&P 500 | 10.9% | | MSCI World | 8.3% | | Berkshire Hathaway | 6.5% | (p.27–30. REQ notes these averages are *not* adjusted for spin-offs like Hexpol, Addlife, Momentum Group and Epiroc, which would raise them further — and the samples are REQ-identified companies listed for the full period, so survivorship deserves a flag.) ## The independent evidence A 2022 Norwegian School of Economics study (Thomas Lie, Markus Martinsen) covering **993 Nordic acquirers and 5,473 deals, 2006–2021**, with monthly-rebalanced equal-weighted portfolios regressed on CAPM, Fama-French 3-factor and Carhart 4-factor (p.48–49): - Programmatic acquirers outperform the market by **0.88–1.32 percentage points monthly**, depending on the model. - Single and traditional acquirers show **insignificant** excess returns. - Programmatic acquirers' annual revenue growth is **~9.5pp higher** than peers. - Median ROIC of **~10%, twice** that of other acquirers. - Insiders own **9.94%** vs 5.05% (single) and 5.14% (traditional). McKinsey's separate work on the Global 1,000 (2007–2017) put programmatic M&A at the top of median excess TRS, ahead of selective, large-deal and organic strategies (p.43). > [!warning] Read the base rate carefully > These studies define programmatic by deal *behaviour*, not by quality. That a strategy has a good base rate does not make any given practitioner of it good — most of this MOC is about telling them apart. ## Related - [[Acquisition-Driven Compounders MOC]] - [[Specialists and Generalists]] - [[The Compounder Screener]] - [[Quality Compounders]] - [[Atlas Capco - ATKLY]]