Initech Capital Cost-Benefit & ROI Dashboard

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Cost-Benefit & ROI — A5 staged platform vs. alternatives · DEC-ICAP-2026-01

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Initech Capital ROI Profile

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A5 · Staged New Platform, Month-12 Gate

New value-add distribution platform (Project Magnolia, $11.5M EBITDA at LOI) with pre-gate spend capped at $110M and a scale-or-hold gate at month 12. Adds a platform inside deal-team capacity. High reversibility; High confidence.

55%
ROI through gate
$171M
Risk-adjusted value (gross $190M × 0.9)

Base Case Scenario

A5 · Staged new platform implementation: $110M investment (pre-gate cap; range $95–110M), generating $171M in risk-adjusted value through the month-12 gate and add-on scale-up. ROI = ($171M − $110M) / $110M ≈ 55%.

trending_up Best Risk-Adjusted ROI — 55%
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A1 · Accelerate Initrode Hydraulics Add-ons

Hydraulics buy-and-build after Initrode Canada, led by Project Cumberland ($5.2M EBITDA, 6.9x). Fastest time to value and highest diligence confidence, but it loads the Operating Partners already finishing the Initrode Canada integration. Runner-up; kept in parallel diligence.

50%
ROI (24 months)
$67.5M
Risk-adjusted value (gross $75M × 0.9)

Base Case Scenario

A1 · Initrode add-on program implementation: $45M investment (range $40–60M), generating $67.5M in risk-adjusted value over 6–12 months. ROI = ($67.5M − $45M) / $45M = 50%.

trending_up Runner-Up ROI — 50%
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A4 · Minority Growth Stake in Healthcare Tech

Minority growth investment (Project Sequoyah, $30M stake). Quick to deploy and light on integration capacity, but weak strategic fit with the distribution mandate and no control.

8%
ROI (24 months)
$35M
Risk-adjusted value (gross $50M × 0.7)

Base Case Scenario

A4 · Minority growth implementation: $32.5M investment (midpoint of $25–40M), generating $35M in risk-adjusted value over 6–9 months to deploy. ROI = ($35M − $32.5M) / $32.5M ≈ 8%.

trending_up Modest ROI — 8%
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A2 · One Large Platform, Full Envelope

Highest unconstrained upside (Project Tombigbee-scale, $13.0M EBITDA), but it spends the full envelope at once, has low reversibility, and fails the deal-capacity and diligence tests.

4%
ROI (24 months)
$182M
Risk-adjusted value (gross $260M × 0.7)

Base Case Scenario

A2 · Full-envelope platform implementation: $175M investment (midpoint of $150–200M), generating $182M in risk-adjusted value over 9–15 months. ROI = ($182M − $175M) / $175M = 4%, before capacity constraints.

trending_up Low ROI — 4%
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Economic Case · $200M Envelope

Five-year case for the full program (VAD, BAI, ACE, OPX): $200M invested 2027–2029, $325M value created through 2031 including EV uplift, discounted at the 12% hurdle.

$39.5M
NPV at 12% hurdle
22.7%
IRR (1.63x value / investment)

Investment Committee View

Investment $110M / $60M / $30M (2027–2029). Value created $10M / $30M / $50M / $75M / $160M (2027–2031, incl. EV uplift). Net $125M; PV benefit/cost 1.24. Excludes financing costs and taxes.

trending_up Clears 12% Hurdle — IRR 22.7%

A5 Staged Platform — Cost-Benefit Summary

$171M
A5 Risk-Adjusted Value
55%
A5 ROI Through Gate
95%
Plan EBITDA Required to Scale
≤3.0x
Net Leverage at Close