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Distinctive Elements

Primary tool: discounted cash flow (DCF) based on detailed 5-year projections

  • Identify company‚Äôs key value drivers based on detailed business line analysis
  • Enables us to quantify the impact of key assumptions on our buy and sell prices

Redeployment, not just generation, of free cash flow key to analysis

  • Strong relationships with management result in better information and constructive input
  • Understand business rationale for capital allocation decisions

High absolute return target embedded in our DCF analysis

  • 15% or 20% discount rate for all company models
  • Not a function of market environment