Businesses ColfaxGlobal technology company. There are two main segments to the company: (i), Fabrication Technology, which includes consumables and equipment. These include joining, cutting and welding, as well gas control equipment. (ii), Medical Technology: these products treat patients with musculoskeletal conditions due to degenerative disease, injury, trauma, sports injuries and other deformities. You can find a variety of products for reconstructive joints, including orthopedic bracings and hot-cold therapy products.

Stock Market ValuePrice: $7.3B (51.62/share)

This is the second opportunity to create value by closing the valuation gap and focusing on growth and margins. As the business has a median revenue growth rate of 30 and an EBITDA margin of 30, it should be able to grow its revenues at least as high or higher than its peers. MedTech ranks at the bottom with 23.5%. MedTech’s gross margin is similar to that of its peers. selling, general and administrative expenseproblem

Starboard’s track record in helping businesses improve their operating margins is extensive. The firm recently did just that at a similar company, Merit Medical, generating a 113% return in under two years versus 36% for the S&P 500. The company could also reduce excess costs to improve its margins, and invest more in growth. The company supports this view and announced that it will target a 25 percent EBITDA for MedTech. Starboard thinks this plan for improving margins could be made more efficient by focusing on it, as Merit Medical did. A standalone MedTech, adjusted for margin improvement would trade at 10x EBITDA instead of its peers’ 19x. This would mean that the stock price for MedTech standalone in 2023 will be $76 and $94 respectively.

Ken Squire, the president and founder of 13D Monitor is an institution research service that focuses on shareholder activism. He also founded and managed the portfolio for the 13D Activist Fund which invests in a range of activist 13D investments.