Swiss Serial Acquirers: 8 of 13 Earn Above Cost of Capital

[Part of our Global Serial Acquirer Scorecard]

Key Finding: 62% of Swiss serial acquirers earn above 12% ROIC — the highest rate of any market screened. The secret is not superior acquisition skill. Four of the eight Tier A companies carry zero goodwill. Switzerland’s edge comes from organic compounding, not deal-making.

We screened 13 Swiss serial acquirers listed on the SIX Swiss Exchange by return on invested capital. Eight earn above a 12% cost of equity. Two sit at the borderline. Three destroy value. The overall quality is unmatched globally — but the reason challenges the serial acquirer thesis itself.

The Swiss Serial Acquirer Scorecard

#CompanyTickerROICGW/TAOp MarginDrawdownTierVerdict
1InficonIFCN29.8%0%20.3%-51.4%AZero goodwill. Best-in-class ROIC.
2BelimoBEAN26.4%0%19.2%-44.0%AOrganic niche monopolist. Zero goodwill.
3GeberitGEBN22.6%30%24.7%-45.8%ABest genuine acquirer. Margins absorb goodwill.
4SchindlerSCHN17.0%9%11.2%-49.2%AElevator duopoly. Low goodwill despite decades of M&A.
5StraumannSTMN16.7%16%24.0%-58.3%ADental implant leader. GLP-1 fears overdone.
6TemenosTEMN12.9%39%22.1%-24.2%ABanking software. High goodwill, earning above CoC.
7SonovaSOON12.5%41%17.9%-48.0%AHearing aids. ROIC declining from mid-teens.
8Bucher Ind.BUCN12.2%0%8.9%-38.2%ADiversified machinery. Zero goodwill.
9BossardBOSN10.5%0%10.2%-54.0%BCyclical trough. Mid-cycle ROIC is 15%+.
10SikaSIKA10.2%41%14.6%-59.8%BMBCC compressed ROIC from 14%. Integration pending.
11DormakabaDOKA8.3%2%10.4%-56.7%CKaba-Dorma merger destroyed capital efficiency.
12Landis+GyrLAND5.9%43%7.3%-48.3%CCommodity smart meters. PE legacy goodwill.
13SIG GroupSIGN3.5%41%10.7%-69.5%DPE baggage. Scholle IPN added leverage without returns.

Tier A: 8 companies (62%). Tier B: 2 (15%). Tier C: 2 (15%). Tier D: 1 (8%). No other market comes close — the US has 38% Tier A, Sweden has 25%, and Canada has 15%.

What Works: Two Models of Swiss Excellence

Switzerland’s Tier A companies split into two distinct groups. Understanding which model drives the returns changes how you think about the entire serial acquirer thesis.

The Zero-Goodwill Cluster

CompanyROICGW/TAOp Margin
Inficon29.8%0%20.3%
Belimo26.4%0%19.2%
Bucher12.2%0%8.9%
Bossard10.5%0%10.2%

Four companies with zero goodwill. The top two — Inficon and Belimo — earn 26-30% ROIC through organic growth and niche dominance, not acquisitions. Inficon makes precision instruments for semiconductor manufacturing. Belimo holds a near-monopoly in HVAC actuators. Neither needs to acquire to compound. Bucher Industries carries zero goodwill despite decades of acquisitions — either through small tuck-in deals or aggressive writedowns. Bossard is a fastener distributor in a cyclical trough; mid-cycle ROIC is 15%+.

This cluster is Switzerland’s distinctive edge. It pulls the average GW/TA down to 17% — second-lowest of any market screened, behind only Japan’s 11.5%.

The Disciplined Acquirers

Geberit — 22.6% ROIC with 30% GW/TA. The best genuine acquirer in the Swiss universe. Operating margins of 24.7% are high enough to absorb the goodwill burden and still earn well above cost of capital. Geberit has shifted from active acquirer to organic grower, and ROIC has held at ~22% through the transition.

Schindler — 17.0% ROIC with just 9% GW/TA despite decades of elevator and escalator acquisitions. Low goodwill intensity suggests disciplined pricing throughout the acquisition history. The service and maintenance annuity creates a moat that sustains returns. ROIC improved from 12% to 17% over the past five years.

Straumann — 16.7% ROIC, 24.0% operating margins, 16% GW/TA. An aggressive acquirer that maintains high returns. The -58.3% drawdown is the most anomalous quality-drawdown dislocation in the Swiss market — GLP-1 weight loss drug fears crushed the stock despite 10% revenue growth in FY25.

The Borderline Watch

Temenos — 12.9% ROIC with 39% GW/TA. Core banking software with 22.1% operating margins. Earning above cost of capital, but ROIC has been volatile. At 39% goodwill intensity, one bad year pushes Temenos past the 40% cliff.

Sonova — 12.5% ROIC with 41% GW/TA. Already past the cliff. ROIC is declining from 17% to 12.5%, driven by goodwill load from hearing aid acquisitions. Sonova is the only company above 40% GW/TA earning above cost of capital in this market. The trend is wrong.

The Goodwill Cliff

Company (GW/TA)ROICAbove CoC?
Landis+Gyr (43%)5.9%No
Sika (41%)10.2%No
SIG Group (41%)3.5%No
Sonova (41%)12.5%Yes

One of four companies above 40% GW/TA earns above cost of capital. The global pattern holds. Sonova barely passes and is declining. Sika was above 12% before the MBCC acquisition and may recover — but at current ROIC, it confirms the cliff.

What Fails

PE Legacy: SIG Group and Landis+Gyr

Both SIG Group (3.5% ROIC, 41% GW/TA) and Landis+Gyr (5.9%, 43%) were private-equity-owned before re-listing on the SIX. Both carry 40%+ goodwill that the operating business cannot service. SIG Group inherited Scholle IPN acquisition leverage without the returns — the deepest drawdown in the sample at -69.5%. Landis+Gyr makes commodity smart meters where acquisitions cannot change industry structure. When PE firms exit to public markets, public shareholders inherit the goodwill burden.

One-Deal Destroyer: Dormakaba

Pre-merger Kaba earned 35% ROIC. The 2015 “merger of equals” with Dorma crashed returns to 1.7%. A decade later, Dormakaba has recovered to just 8.3% — still below cost of capital. The 2% GW/TA is misleading: the merger goodwill was written off, but the value destruction lives in the suppressed ROIC. This is the purest one-deal destroyer in the Swiss universe.

Verdict Pending: Sika

Sika’s MBCC acquisition (2023, CHF 5.5B) compressed ROIC from 14% to 10.2%. Historical pattern offers hope — Sika’s ROIC dropped to 8% in 2012 after earlier deals, then climbed back to 16% by 2018. If the pattern repeats, Sika returns to Tier A within three years. If it does not, reclassify as a one-deal destroyer.

Two Paths to High Returns

Switzerland and the United States both produce high Tier A rates through opposite models.

MetricSwitzerland (13)US (16)Sweden (24)
Tier A rate62%38%25%
Avg GW/TA17%43%34%
Avg Op Margin15.5%22.4%8.8%
Below 5% ROIC8%0%38%

The US path: acquire aggressively, build moat-powered margins high enough to overcome 43% average goodwill intensity. US serial acquirers average 22.4% operating margins — highest of any market — and use those margins to absorb heavy balance sheets.

The Swiss path: avoid goodwill entirely. Grow organically or acquire with extreme discipline. Swiss serial acquirers carry 17% average goodwill — less than half the US figure — and earn returns through capital efficiency rather than margin superiority.

Sweden provides the counterpoint. The Swedish roll-up model sits between these poles — 34% average GW/TA with 8.8% average margins — and produces the worst outcome: 25% Tier A, 38% below 5% ROIC. The Swedish model pays acquisition premiums without the margin buffer to absorb them.

The lesson: serial acquisition works when either margins are high enough to service the goodwill (US) or goodwill is low enough that margins don’t need to be extraordinary (Switzerland). The middle path — moderate goodwill, moderate margins — fails most often.

What to Look For in Swiss Serial Acquirers

Four filters for this market:

  1. Prefer zero goodwill. The four zero-goodwill companies average 19.7% ROIC. The nine with goodwill average 12.2%. The balance sheet tells you more than the income statement.
  2. Watch the PE exits. SIG Group and Landis+Gyr prove that PE-to-public transitions leave public shareholders with goodwill they cannot service. Any future Swiss PE exit deserves the same scrutiny.
  3. Cycle-adjust before judging. Sika, Bossard, Geberit, and Bucher all have construction and industrial exposure. Trough ROIC understates normalized returns. Use 5-year ROIC direction, not point-in-time.
  4. The Dormakaba test. Before any “merger of equals,” ask: would this deal destroy the capital efficiency that makes the company Tier A? If the target is large relative to the acquirer, one deal can undo a decade of compounding.

Methodology

We screened 13 Swiss serial acquirers listed on the SIX Swiss Exchange. All financial data in CHF.

Four companies (Inficon, Belimo, Bucher, Bossard) carry zero goodwill and are organic growers; they are included because they are frequently grouped with Swiss serial acquirers and serve as benchmarks for capital discipline.