Research Pipeline Session #15: 2 Transformative Acquisitions, and an EBITDA inflection
Two acquisitions, one automation platform, and a 12-month window to prove the thesis.
A micro-cap company just completed two back-to-back acquisitions that could transform its financial profile, from lumpy, unpredictable revenue to a steadier, technology-driven model with meaningful EBITDA.
The company has a proprietary automation platform that is already showing 60-70% efficiency gains at one of the acquired businesses. This acquisition may have just given that platform the client relationships it needed to start generating its own revenue.
As a reminder, Research Journals contain ideas that are part of our pipeline. These ideas are not yet in the Microcap Quality Index (MSMqi), but they have the potential to graduate into the index over time.
Some recent examples of companies that have moved from our Research Journal pipeline into the Index include: