Cliff Note #130: Multibagger Opportunity driven by a Transformational Acquisition

Multibagger Themes: Transformational Acquisition - Increasing Gross Margins - Operating Leverage - Increasing Revenue per Employee - Debt Refinancing

Multibagger Themes: Transformational Acquisition - Increasing Gross Margins - Operating Leverage - Increasing Revenue per Employee - Debt Refinancing

This is the second cliff note out of five that we plan on publishing this week, in line with our community update posted on Monday.

Cliff Note #130 operates in the Software and Business Process Automation industry. On the surface, the company looks uninvestable with high leverage, declining revenues, and ongoing losses. However, a deeper look tells a very different story, with significant upside in our base case scenario, which does not assume further interest rate savings announced by management. We have also not assumed any meaningful growth assumptions despite management’s comments about troughing revenue and investing in salespeople.