Case studies Flashcards
1
Q
High level, what are the key components of your framework?
A
BMP
1) Business Quality
> Leading market position and sustainable competitive advantage
> Multiple avenues for growth
> Favourable market trends (large TAM, market growth, whitespace/low penetration)
2) Management Quality
> Management team is experienced within the industry and with each other
3) Price / Financial Profile
> Strong and stable cash flow generation
> Strong: High cash flow margin that is able to paydown debt quickly (can support additional turns of leverage to enhance returns, or even negotiate lower interest rates)
> Stable/predictable: Long-term B2B contracts, recurring revenues, low customer churn
