Lynch Group is a recent listing that is coming out of Private Equity control (put on the sceptical hat straight away). They're a vertically integrated flower grower and distributer of flowers and plants to retailers (in particular supermarkets) in Australia and China. I haven't spent hours on this one as there's just too many red flags for me but from my brief overview of the Prospectus and historical reports: What's good - * Good founder ownership at circa 15% * Long history being founded in 1915 * Scale as a barrier to entry * Have a virtual monopoly on Australian supermarket sales and supermarkets have low penetration into this market versus other countries (around 19% of Aust TAM vs over 50% in UK) What not - * Exec ownership is just fair at best (circa 2%) * China represents their biggest growth opportunity and unfortunately for China I think their recent actions have created a degree of sovereign risk * Dominance of Australian market limits growth * Low market CAGR (1-2% p.a.) * Private Equity sale * I don't like seeing big diffs in statutory and pro-forma forecast results in a prospectus - in reeks of a PE sale (see above) * Glyphosate litigation globally adds risk * Selldown of most significant holders on listing * Poor balance sheet with high historical debt (large amount of IPO proceeds being used to pay this down) and high intangibles/goodwill, which should be better labelled as Deferred Impairment This doesn't look horrible from a valuation perspective but it's not one that I'd be interested in at almost any price for the next couple of years.