...September 8, 2023 Business Integration Partners' (BIP's) elevated leverage leaves little room for underperformance, although S&P Global Ratings forecasts it will reduce in 2023. The high leverage of 8.4x at year-end 2022 compares with 7.2x previously forecast and owes to a lower EBITDA margin due to higher-than-expected investments to build out central functions and retain skilled talent in a very competitive market environment, in addition to more debt linked to the several acquisitions undertaken during the year. However, we forecast leverage will decline below 7.0x at the end of 2023 and below 6.5x by 2024, thanks to solid revenue growth of 16.0% in 2023 (including the full-year impact of the 2022 acquisitions) and 6.0% in 2024, coupled with stable S&P Global Ratings-adjusted EBITDA margins of about 15.0%. Absent significant mergers and acquisitions, the deleveraging will be further supported by about a 35 million reduction in earn- outs, deferred considerations, and minority put options...
