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S11E10: Stax Private Equity Case Interview - Portfolio Company Growth

Strategy Simplified

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How to Calculate an Annual Purchase Rate

For every unit that exists right now, what percentage would end up either adding one moon or replacing it over the course of next year? So we're saying that 35% of our water jet machines will no longer work and need to be replaced next year. What I'm trying to figure out is like, what's the annual purchase rate at a full market level? Yeah. It just means that on the left side, what you're seeing is what currently has been, like, its existing in these organizations.

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