New Buy: European small cap with 9-45% IRR range (25% average, 14% average excluding multiple expansion)
9x EBIT growing >10% with net cash balance sheet
Today, I bought a new European small cap with a very compelling IRR potential. The company is at an inflection point and continues to focus more on software/SaaS versus its old hardware business model. The company is not operating in a very cyclical industry, but COVID-19 was a disruption. Since the new management team took over growth has reaccelerated and the company is shareholder friendly with all excess cash flow paid out as buybacks and dividends. I funded the purchase by selling a lower conviction holding.
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