From Matthew Sweeney at Laughing Water Capital:

Where to look for buying opportunities … The market has been swift to punish companies with leverage, but it is also a fact that the more predictable a business is, the better it is and the more debt it can handle. There are many instances of excellent businesses with dominant competitive positions that have been sold indiscriminately because of financial leverage. Some of these businesses face existential risk. However, there are some babies in the bath water right now whose debt has been termed out appropriately, and in some cases they are trading at low single-digit multiples of normalised earnings...

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