3Q 2020 Investor Presentation
Investment Criteria and Post Acquisition Review
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Clear Industrial Logic
Strategic fit is the most important factor and the
first screen
La
» 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
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
>> GAAP EPS accretive by
year 3 (where applicable)
>> 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 transactions
>$10 million
MOODY'S
3Q 2020 Investor Presentation - November 11, 2020
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