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Investment Screening Report
Alcatel-Lucent · Confidential Information Memorandum
IACalc Report
Thesis: Yield Acquisition — stable cash flows for quarterly distributionsCRITICAL THRESHOLDS BREACHED
Revenue
€14.5B
FY 2014
EBITDA Margin
4.8%
Below 5.0% critical
Gross Leverage
6.95×
Exceeds 6.0× critical
Altman Z-Score
1.43
Distress zone
3 Critical 4 Investigate 6 MonitorReport Grade: A
Investment Read: Gross leverage at 6.95× exceeds the 6.0× critical threshold for yield-focused acquisitions. EBITDA margin of 4.8% falls below the 5.0% minimum for distribution capacity. Source: CIM pp. 14, 27, 43

Real production output from the Alcatel-Lucent CIM

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Signals screened
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Investment intents
< 7 min
Per analysis
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03

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250+ Signals42+ Calculators

Altman Z-Score, Beneish M-Score, DuPont analysis, FCF conversion, leverage ratios, and forensic metrics across 9 risk domains.

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The core differentiator

Same company. Same data. Different buyer. Different verdict.

This isn’t a feature — it’s the whole point. The same financial metric is a critical threshold breach for one buyer and irrelevant to another.

Alcatel-Lucent · EUR 14.5B revenue · 4.8% EBITDA margin · Gross leverage 6.95×

Yield Acquisition

A dividend fund looking for stable, predictable cash flows to distribute to LPs.

Gross Debt / EBITDA
Critical threshold: 6.0×
6.95×
CRITICAL

Leverage exceeds the critical threshold for distribution capacity. EBITDA margin at 4.8% cannot support debt service and distributions simultaneously.

Strategic IP Acquisition

A tech company acquiring for Bell Labs patents and R&D capabilities.

Gross Debt / EBITDA
Critical threshold: 10.0×
6.95×
MONITOR

Leverage reads below the critical threshold but above the investigation level. The IP may justify acquisition; leverage structure needs further evaluation.

Distressed Turnaround

A restructuring fund that buys struggling companies and fixes them.

Gross Debt / EBITDA
Critical threshold: 15.0×
6.95×
WITHIN THRESHOLD

All signals pass under distressed turnaround thresholds. The leverage that breaches yield thresholds is within expected range for restructuring plays.

Nokia acquired Alcatel-Lucent in 2016 for €15.6B — they wanted Bell Labs patents, not cash flow. Every verdict above is the correct answer for that buyer.

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