Bending Spoons: M&A-Driven Compounding Platform; Durability of Returns at Scale to Be Tested; Initiating Neutral, $35 PT

Research evidence excerpt

Bending Spoons: M&A-Driven Compounding Platform; Durability of Returns at Scale to Be Tested; Initiating Neutral, $35 PT

Doug Anmuth AC North America Equity Research

(1-212) 622-6571 27 July 2026 J P M O R G A N

douglas.anmuth@jpmorgan.com

headcount optimization is the largest driver behind expense reduction, with some

acquisitions like Evernote seeing an 82% reduction in headcount since purchase.

Transformations are typically completed within the first year following a deal

completion.

Step 3: Reinvest. Once Bending Spoons has transformed and optimized a newly

acquired business, it will reinvest excess earnings and incremental debt proceeds into

additional acquisitions. We note that unlike traditional private equity firms or serial

acquirers, reinvesting is the last stage of the Bending Spoons playbook, and, as such, the

company intends to hold onto its businesses indefinitely. The strategy behind not selling

is driven by Bending Spoons’ belief that it is often the best owner of any asset it

acquires, and due to the platform integration, carve-outs are operationally complex.

While this allows Bending Spoons to evaluate value creation over a 10-20-year time

horizon, it reduces the flexibility to sell underperforming assets or realize value that

public markets may be missing.

The Bending Spoons Platform

To execute its playbook, Bending Spoons relies on its Platform, which consists of

people, proprietary technology, and proprietary data. The company has been building its

Platform since its founding in 2013 and views it as the primary source of its competitive

advantage.

People

The executors of the Bending Spoons playbook are its “Spooners.” Spooners are

employees of the core team who are allocated flexibly across the portfolio and can be

transferred between businesses.