Portfolio strategy

Which arbitrage, what actions to reinforce the performance of the portfolio of shareholdings ?

In addition to its core business which is M&A advisory, MBA Capital has integrated through its O&R practice a recongnized expertise and experience in operational diagnosis and advisory.

MBA Capital provides answers to : which arbitrage, what actions to reinforce the performance of the portfolio of shareholdings ?

Before a new shareholding investment decision, MBA Capital O&R provides a more operational insight to a strategic due diligence, bearing upon an analysis of the business model and the eye of a CEO and manager on the construction of the business plan and the investment thesis. The major stake at this stage for the private equity fund or the family office is to take a decision with the adequate information (to invest or not, at what price ?).

After, MBA Capital O&R positions itself as an external operating partner, intervening on demand at mainly 3 key moments :

The first 100 days : in order to ensure that the business plan actions are implemented by management and, in paraelle, to analyze in detail the business model to indentify improvement levers and recommend pragmatic, quantified measures with a defined calendar then assist in their implementation

During the holding period : as soon as a notable discrepancy in operational cash flow generation between business plan and actual is found (from 5 points of EBITDA of underperformance).

In the 2 to 3 years prior to the exit horizon : to improve in an ongoing way the business model and thus envisage a better than anticipated multiple

A periodic portfolio review with the investment directors allows MBA Capital to be proactive and anticipate the issues in order to prevent running into difficult situations.

Independent professional, MBA Capital acts as an advisor and systematically with the agreement of management.

  • MBA Capital contributes to an enligthened appreciation of the strength of the business model and of the business plan prior to investing
  • MBA Capital positions itslef as an external operating partner able to act at any time during the holding, especially at the start, in case of underperformance or in preparation of the exit
  • Our recommendation > Act as soon as underperformance reaches 5 points of EBITDA against business plan
  • A periodic review of the whole portfolio enables the invesor to anticipate issues

MBA Capital delivers insight based upon analysis of the business model, how the business plan and the investment thesis are built.