Quality of earnings, 13-week cash, covenant runway, working-capital unlock and the value levers behind the PE thesis.
Liquidity of $2200M (≈ 10 weeks of cover) and $7993M of deal capacity make capital the lever, not the constraint. Free the trapped cash first: normalizing DSO to 48d releases ≈ $341.4M and clears $216.6M of overdue receivables.
7 of 8 headline metrics improving vs prior · still off target: Revenue $8.90B vs $9.50B, EBITDA $1.90B vs $2.05B, EBITDA Margin 21.4% vs 22.0%
Move to credit hold pending paydown; reforecast ARR net of likely churn.
Distress filings + overdue AR; churn risk High on $6.4M account.
Sets deal capacity and refinancing risk.
Closing the DSO gap releases ≈ $341.4M of one-time cash; $216.6M is already >60 days overdue and at collection risk.
Targeted collections sprint on $0.9M; tighten milestone billing on ISC projects.
ISC (67d), Legrand Retail (66d), Netatmo IoT Assets account (67d) lifting blended DSO.
$859.94M of add-backs (45% of adj.) — the diligence-grade walk.
Organic vs. acquisitive vs. price/mix vs. cost.
Net weekly cash (bars) and ending cash (line) vs. $20M minimum. Forecast trough: $325.39M.
Net Debt/EBITDA deleveraging path against the 5.5x covenant ceiling.
Normalizing laggard brands to a 50-day DSO releases ~$96.4M of one-time cash.
Concentrated in newer cohorts (ISC, Signet, RFI) where billing discipline lags integration — the fastest cash win this fiscal year.
Annuity growth and where EBITDA is generated.
Total AR $1316M
Overdue (>60d) = $216.6M at collection risk.
Accounts ranked by DSO and credit/churn risk.
| Account | Revenue | DSO | NRR | Credit/Churn |
|---|---|---|---|---|
| Netatmo IoT Assets | $72.56M | 67d | 97% | High |
| Data Center Segment | $146.25M | 63d | 104% | Medium |
| Regional Operations | $46.48M | 59d | 100% | Medium |
| North America Operations | $160.99M | 58d | 112% | Low |
| Group Legrand India | $81.63M | 55d | 105% | Medium |
| IBM | $109.97M | 52d | 101% | Medium |
| UPS | $128.11M | 49d | 106% | Low |
| Limoges Plant | $210.88M | 47d | 108% | Low |
| Retail Segment | $182.54M | 44d | 119% | Low |
| BTicino International | $65.76M | 41d | 110% | Low |
EBITDA uplift, DSO normalization and synergy realization (as-acquired → current).
| Brand (cohort) | Acq. | Revenue | EBITDA % | DSO | Integration | Synergy | Status |
|---|---|---|---|---|---|---|---|
| BTicino | 2021 | $385.48M | 102.04→158.73% | 71→58d | 100% | 92% | Integrated |
| USystems | 2021 | $249.43M | 90.7→147.39% | 66→54d | 100% | 90% | Integrated |
| Netatmo | 2022 | $1088.41M | 124.71→181.4% | 68→56d | 95% | 88% | Integrated |
| Legrand North America | 2023 | $657.58M | 113.38→147.39% | 70→61d | 82% | 74% | In progress |
| Legrand India | 2024 | $464.84M | 102.04→124.71% | 73→67d | 60% | 55% | In progress |
| Legrand Data Center Solutions | 2024 | $419.49M | 102.04→136.05% | 71→60d | 80% | 78% | In progress |
| Legrand Retail | 2024 | $328.79M | 90.7→102.04% | 69→66d | 45% | 40% | Early |
Partner spend, DPO (working-capital lever), delivery and risk.
| Supplier | Category | Spend | DPO | OTIF | Score | Risk |
|---|---|---|---|---|---|---|
| USystems Supplier | Video Surveillance | $725.61M | 45d | 96% | 91 | Low |
| Asian Vendor | Fire & Access | $657.58M | 42d | 93% | 88 | Low |
| Arrow Electronics | Critical Comms | $464.84M | 38d | 90% | 85 | Medium |
| Oracle SCM | Video Surveillance | $306.11M | 36d | 89% | 83 | Medium |
| SAP ERP | Video VMS | $260.76M | 40d | 95% | 87 | Low |
| MES | AV / Collaboration | $215.41M | 44d | 92% | 86 | Low |