skills/cim-builder/references/sector_modules.md

# Sector Modules

Use the closest sector module to choose KPIs, diligence pressure points, exhibits, and buyer framing. If the company spans sectors, combine modules and explain which metrics matter most.

## Table of contents

- [Software / SaaS](#software--saas)
- [Healthcare services](#healthcare-services)
- [Industrials / manufacturing](#industrials--manufacturing)
- [Business services](#business-services)
- [Consumer / retail / branded products](#consumer--retail--branded-products)
- [Fintech / financial services](#fintech--financial-services)
- [Infrastructure / energy / contracted assets](#infrastructure--energy--contracted-assets)
- [Real estate / real assets](#real-estate--real-assets)
- [Distressed / special situations](#distressed--special-situations)

## Software / SaaS

Must analyze:

- ARR / MRR and definition.
- ARR bridge: starting ARR, new, expansion, contraction, churn, ending ARR.
- gross revenue retention and net revenue retention.
- logo retention.
- cohort expansion.
- CAC, LTV, CAC payback.
- Rule of 40 and growth/profit tradeoff.
- gross margin by subscription, usage, services, and support.
- implementation costs and services margin.
- sales productivity and quota attainment.
- cloud hosting costs.
- product usage and engagement.
- customer concentration and contract terms.
- security, privacy, compliance, and integrations.

MD judgment:

- Do not treat all ARR as equal. Distinguish recurring subscription, usage-based, minimums, implementation, professional services, resale, and one-time revenue.
- NRR without gross retention can hide churn.
- Growth at inefficient CAC may not support valuation.
- AI or proprietary-data claims need concrete evidence.

Useful exhibits:

- ARR bridge.
- retention cohorts.
- revenue by module.
- customer cohort expansion.
- sales productivity.
- Rule of 40 bridge.

## Healthcare services

Must analyze:

- payor mix.
- reimbursement exposure.
- procedure/visit/case volume.
- same-site growth.
- provider capacity and utilization.
- referral sources.
- site-level economics.
- de novo maturity curves.
- labor and clinician availability.
- compliance, licensure, audit history.
- quality metrics and outcomes.
- regulatory or reimbursement changes.

MD judgment:

- Buyers will diligence compliance, reimbursement, provider concentration, quality metrics, and referral concentration aggressively.
- Site growth without provider capacity or reimbursement support is weak.

Useful exhibits:

- revenue by payor.
- site cohort maturity.
- same-site growth.
- provider utilization.
- referral source mix.

## Industrials / manufacturing

Must analyze:

- backlog and book-to-bill.
- capacity utilization.
- plant footprint.
- raw material exposure.
- pass-through mechanisms.
- supplier concentration.
- customer programs.
- quality metrics.
- safety metrics.
- working capital.
- maintenance vs. growth capex.
- automation/productivity.
- cyclicality.

MD judgment:

- Growth needs backlog, capacity, program, or customer evidence.
- Gross margin may be distorted by raw materials, mix, utilization, or pass-through timing.
- Capex intensity and working capital can dominate EBITDA quality.

Useful exhibits:

- backlog conversion.
- capacity/utilization.
- gross margin bridge.
- raw material pass-through.
- customer program lifecycle.

## Business services

Must analyze:

- recurring vs. project revenue.
- contract length.
- customer concentration.
- retention.
- labor utilization.
- revenue per employee.
- branch/site economics.
- wage inflation.
- pipeline and sales cycle.
- service delivery scalability.
- cross-sell and upsell.

MD judgment:

- Distinguish people-driven growth from process, platform, or route-density-driven growth.
- Margin expansion must be tied to utilization, pricing, productivity, or delivery mix.

Useful exhibits:

- revenue by contract type.
- retention and tenure.
- utilization.
- revenue per employee.
- branch maturity curve.

## Consumer / retail / branded products

Must analyze:

- channel mix: DTC, wholesale, retail, marketplace, distributor.
- gross margin by channel.
- sell-through and retail velocity.
- repeat purchase and cohorts.
- customer acquisition cost and payback.
- inventory, returns, markdowns, promotions.
- SKU productivity.
- retailer/customer concentration.
- brand awareness and loyalty.
- supply chain and working capital.

MD judgment:

- DTC, marketplace, retail, and wholesale revenue are not equally valuable.
- Growth driven by paid acquisition or promotions needs unit economics support.
- Inventory quality and returns can change the earnings story.

Useful exhibits:

- channel mix and margin.
- cohort repeat purchase.
- retail velocity.
- inventory turns.
- SKU productivity.

## Fintech / financial services

Must analyze:

- regulatory permissions and licenses.
- take rate and revenue model.
- GMV / TPV / AUM / balances / deposits, as applicable.
- credit exposure, losses, delinquencies, charge-offs.
- fraud losses.
- funding model.
- compliance controls.
- partner bank, sponsor bank, payment processor, or custodian dependencies.
- unit economics.
- customer acquisition.
- data security.

MD judgment:

- Growth is not attractive if credit, fraud, funding, compliance, or partner dependency risk is unstable.
- Revenue quality depends on whether economics are recurring, transaction-based, spread-based, fee-based, or balance-sheet-intensive.

Useful exhibits:

- volume and take-rate bridge.
- loss/fraud trends.
- revenue by product.
- cohort economics.
- regulatory/compliance framework.

## Infrastructure / energy / contracted assets

Must analyze:

- contracted revenue and tenor.
- counterparty credit.
- asset life and maintenance capex.
- availability and utilization.
- commodity exposure.
- offtake agreements.
- regulatory framework.
- permits and interconnection.
- tax credits/incentives.
- debt capacity.

MD judgment:

- Cash flow durability and contract quality matter more than headline growth.
- Commodity, counterparty, and maintenance capex risks need clear framing.

Useful exhibits:

- contract maturity schedule.
- counterparty mix.
- cash yield / EBITDA / FCF profile.
- maintenance capex.
- regulatory framework.

## Real estate / real assets

Must analyze:

- NOI and EBITDA bridge.
- occupancy.
- rent roll.
- lease maturity.
- tenant concentration.
- same-store growth.
- capex.
- asset quality and location.
- replacement cost.
- zoning/permitting.
- debt and liens.
- environmental issues.

MD judgment:

- Asset quality, lease durability, and capex may matter more than corporate EBITDA.
- Tenant rollover and required capex are key diligence pressure points.

Useful exhibits:

- rent roll.
- lease maturity wall.
- NOI bridge.
- tenant concentration.
- capex plan.

## Distressed / special situations

Must analyze:

- liquidity and cash burn.
- debt stack and maturity wall.
- covenant compliance.
- collateral.
- claims and liabilities.
- recovery value.
- vendor/customer stress.
- restructuring options.
- DIP or rescue financing need.
- timing constraints.
- sale process approvals.

MD judgment:

- Do not market a distressed asset like a growth asset. Emphasize certainty, downside, asset value, speed, and legal/process constraints.
- Buyers will focus on liabilities, cash needs, and transaction mechanics.

Useful exhibits:

- liquidity runway.
- debt stack.
- maturity wall.
- recovery bridge.
- process timeline.