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Cervelo

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  1. When looking at these companies I also look at the track record of management and how much skin they have in the game. Example is Bradley Jacobs with XPO Logistics, when he started to roll with that thing an investor only needed to look at his track record in acquisitions and consolidating other industries (United Rentals and Waste Management). That would lead you to believe he should do ok in acquiring and consolidating the trucking logistics business. Then see how much of his own capital is in there and how his teams bonus structure is; if they have a huge chunk tied to the share price being X is Y number of years you know they are going to work hard to build shareholder value until Y number of years; and hopefully that keeps rolling forward. This type of bonus structure will also limit the chance of your equity being destroyed with acquisitions via shares. Also, if they are acquiring businesses, are the previous owners keeping some skin in the game. Its typically the previous owners/staff that have the relationships with the customers and you want them to hang around and maintain those relationships.
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