1Q 2021 Investor Presentation
Investment Criteria and Post-Acquisition Review
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Clear Industrial Logic
Strategic fit, the most important factor, is the first
screen
Disciplined Financial Targets
Long held, clear financial framework for
external (and internal) investments
Post-Acquisition Review
Disciplined and rigorous monitoring post-close
» Complementary ratings,
content, data, analytics, risk
management, etc., in existing
and/or high growth markets
>> Financial services and adjacent
client base that can leverage
Moody's brand, distribution,
core credit expertise and
analytic capabilities
>> Preference for recurring or
"repeat" revenue and low
capital intensity
» IRR at above Moody's cost
of capital
>> >10% annual cash return
yield within 3-5 years
» Cash payback within
7-9 years
>> U.S. GAAP EPS accretive by
year 3 (where applicable)
>> Transactions evaluated on
an unlevered basis
» Clear accountability with
regular reporting to senior
management and Board
» Integrate within acquiring
business unit while
maintaining unique and / or
entrepreneurial
characteristics
» Acquisition tracking for
minimum of 3 years after
close for transactions
>$10 million
Moody's | Better decisions
1Q 2021 Investor Presentation
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