Value Investing in my Circle of Competence, Hurdle Rate

Hurdle Rate

Value Investing in my Circle of Competence

The name “Hurdle rate” was inspired by none other than Mark Leonard of Constellation Software, and their prolific use of a fixed hurdle (discount) rate for their investments. Had you invested into Constellation Software at the time of their IPO as an Australian Investor you would of seen your investment multiply by >100x or (>35% CAGR), an enviable record (Updated March 2023).

Equity Bottom-Up

<ul><li>Sylogist is a public sector software business which provides purpose-built ERP and CRM solutions to over 2,000 clients such as schools, non-government organisations, religious organisations, municipalities, and other government entities. </li><li>Their cloud software is built off the foundation of Microsoft Dynamics 365 Business Central and specifically catered towards the education, government, and donor verticals.</li><li>Historically, Sylogist was run under various management teams who all conducted acquisitions along the way. </li></ul>

Sylogist is a public sector software business which provides purpose-built ERP and CRM solutions to over 2,000 clients such as schools, non-government organisations, religious organisations, municipalities, and other government entities. Their cloud software is built off the foundation of Microsoft Dynamics 365 Business Central and specifically catered towards the education, government, and donor verticals.Historically, Sylogist was run under various management teams who all conducted acquisitions along the way. 

Research from Atrium Research, Atrium Research Corporation

Atrium Research

Research from Atrium Research

Atrium Research Corporation

Atrium Research provides institutional quality issuer paid research on public equities in North America. Our investment philosophy takes a 3-5 year view on equities currently being overlooked by the market. Our research process emphasizes understanding the key performance metrics for each specific company, trustworthy management teams, unit economics, and an in-depth valuation analysis. 

Our research product includes in-depth initiation reports, research notes, thematic research pieces, and company fact sheets.

<ul><li>What you need to know: • Since our last note in September, there have been 11 new takeouts in Canadian small-caps.</li><li>This has accelerated in recent weeks with the acquisitions of Softchoice, Quisitive, and Carebook.</li><li>• Our potential takeouts portfolio is up 61% since inception (November 2023) and 13% since our last note, compared to the TSX up 28% and 9% respectively.</li></ul>

What you need to know: • Since our last note in September, there have been 11 new takeouts in Canadian small-caps.This has accelerated in recent weeks with the acquisitions of Softchoice, Quisitive, and Carebook.• Our potential takeouts portfolio is up 61% since inception (November 2023) and 13% since our last note, compared to the TSX up 28% and 9% respectively.

Finding the Next Takeout in Canadian Small-Caps - Part Four

<ul>
<li>Since our last note in May, there have been 10 additional takeouts in Canadian small-caps, most of which coming in a significant premiums.</li>
<li>The new acquisitions largely fit within the framework outlined in previous reports.</li>
<li>Our potential takeouts portfolio is up 43% since inception (November 2023) and 17% since our last note, compared to the TSX up 18% and 3% respectively.</li>
</ul>


Since our last note in May, there have been 10 additional takeouts in Canadian small-caps, most of which coming in a significant premiums.
The new acquisitions largely fit within the framework outlined in previous reports.
Our potential takeouts portfolio is up 43% since inception (November 2023) and 17% since our last note, compared to the TSX up 18% and 3% respectively.


Finding the Next Takeout in Canadian Small-Caps - Part Three

Canada

Sylogist Ltd. delivers information technology solutions to integrate people, data, and processes across organizations.  The Company's solutions allow fluid information access to both personal computers and mobile devices.  Sylogist provides mobile and integration platforms along with related services to a global customer base.

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Sylogist (SYZ CN)

Sylogist (TSX:SYZ)

Their cloud software is built off the foundation of Microsoft Dynamics 365 Business Central and specifically catered towards the education,...

Hurdle Rate

Finding the Next Takeout in Canadian Small-Caps - Part Four

What you need to know: • Since our last note in September, there have been 11 new takeouts in Canadian small-caps. This has accelerated in recent...

Atrium Research

Finding the Next Takeout in Canadian Small-Caps - Part Three

Since our last note in May, there have been 10 additional takeouts in Canadian small-caps, most of which coming in a significant premiums.

Atrium Research

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)