4Q and FY 2023 Investor Presentation
Investment Criteria and Post-Acquisition Review
Clear Industrial Logic
Strategic fit, the most important factor, is the
first screen
» 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 revenue and low
capital intensity
Disciplined Financial Targets
Long held, clear financial framework for
external (and internal) investments
>> IRR at above Moody's cost of capital
>> >10% annual cash return yield within 3-5 years
» Cash payback within 7-9 years
» Adjusted EPS accretive by year 2
>> Transactions evaluated on an unlevered basis
Post-Acquisition Review
Disciplined and rigorous monitoring
post-close
» 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 substantive transactions
Moody's | Decode risk. Unlock opportunity.
4Q and FY 2023 Investor Presentation 10View entire presentation