Brookfield Business Partners L.P. (BBU): Business Model Canvas

Key Partnerships

Brookfield Business Partners L.P. (BBU) has established strong partnerships with various entities to drive growth and success in its operations. These partnerships include:

• Strategic alliances with investment firms: BBU has formed strategic partnerships with top investment firms to leverage their expertise and resources in identifying lucrative investment opportunities and maximizing returns for its stakeholders.
• Joint ventures with industry leaders: BBU has collaborated with industry leaders in key sectors to develop innovative solutions, share knowledge, and access new markets. These joint ventures have enabled BBU to diversify its portfolio and enhance its competitive edge.
• Suppliers and service providers: BBU works closely with suppliers and service providers to ensure the smooth operation of its business activities. These partnerships help BBU maintain high-quality standards, streamline processes, and deliver value to its customers.
• Public and private sector collaborations: BBU engages in collaborations with both public and private sector entities to drive sustainable growth and contribute to the development of local communities. By partnering with governments, NGOs, and other stakeholders, BBU is able to address social and environmental challenges while creating long-term value for its investors.

Key Activities

Brookfield Business Partners L.P. (BBU) engages in a range of key activities to drive value creation within its business model. These activities include:

• Implementing operational improvements within portfolio companies to drive efficiency and profitability.
• Overseeing day-to-day operations to ensure the smooth running of businesses within the portfolio.
• Deploying industry-leading best practices to enhance the performance of acquired assets.

• Identifying attractive investment opportunities through thorough market research and analysis.
• Negotiating and executing transactions to acquire new businesses and assets.
• Building strategic partnerships and relationships to source proprietary deal flow.

• Monitoring key performance indicators to track and measure the success of portfolio companies.
• Implementing performance improvement initiatives to optimize operations and drive growth.
• Regularly reviewing and assessing the financial and operational health of investments.

• Developing and implementing financial strategies to maximize returns and minimize risks.
• Optimizing capital structures and leverage levels to enhance financial flexibility.
• Managing risks through comprehensive risk assessment and mitigation strategies.

By focusing on these key activities, Brookfield Business Partners L.P. (BBU) is able to create value for its stakeholders and drive sustainable growth within its portfolio of investments.

Key Resources

Brookfield Business Partners L.P. (BBU) has several key resources that support its business model and operations. These resources include:

• BBU has a dedicated team of experienced professionals who bring a wealth of knowledge and expertise to the company. These managers and financial analysts help identify investment opportunities, conduct due diligence, and oversee the performance of BBU's portfolio companies.

• BBU has built a diverse portfolio of investments across various industries, including construction, infrastructure, and manufacturing. This extensive portfolio provides BBU with a strong foundation for growth and diversification.

• BBU leverages advanced operational systems and technology to streamline its processes, improve efficiency, and enhance decision-making. These systems allow BBU to effectively manage its portfolio and drive value creation.

• BBU has access to significant capital and financial assets, which enable the company to fund its investments, support growth initiatives, and capitalize on market opportunities. This financial strength provides BBU with the flexibility and resources needed to pursue strategic objectives.

Value Propositions

Brookfield Business Partners L.P. (BBU) offers a unique set of value propositions that set it apart in the business acquisition and management industry. These key value propositions include:

• Specialized in acquiring high-quality businesses: BBU has a proven track record of identifying and acquiring high-quality businesses across a range of industries. This expertise allows BBU to target businesses with strong growth potential and operational efficiencies, creating value for its investors.
• Focused on long-term capital appreciation: BBU takes a long-term approach to investing, focusing on opportunities that will generate sustainable capital appreciation over time. By investing with a long-term perspective, BBU is able to weather short-term market fluctuations and deliver consistent returns to its investors.
• Expertise in turning around and stabilizing businesses: BBU's team of experienced professionals have the skills and expertise to effectively turn around struggling businesses and stabilize operations. By implementing strategic changes and operational improvements, BBU can maximize the potential of its acquired businesses and drive value creation.
• Strong operational focus and asset management: BBU has a strong operational focus, working closely with the management teams of its acquired businesses to implement best practices and drive efficiencies. With a hands-on approach to asset management, BBU is able to identify opportunities for growth and value creation, delivering results for its investors.

Customer Relationships

At Brookfield Business Partners L.P. (BBU), we prioritize building strong and lasting relationships with our customers. We believe that maintaining open lines of communication and providing personalized assistance is crucial in delivering the best possible service and achieving mutual success.

Our approach to customer relationships is centered around the following key aspects:

• Personal assistance and advisory services: We understand that each client has unique needs and challenges. That's why we offer personalized assistance and advisory services to help our customers navigate complex business landscapes and make informed decisions.
• Long-term partnerships and client support: We are committed to developing long-term partnerships with our clients, built on trust, transparency, and mutual respect. Our dedicated team of professionals is always ready to provide ongoing support and guidance to ensure our customers' success.
• Commitment to stakeholder transparency and communication: We believe in fostering open and transparent communication with all stakeholders, including customers, employees, and partners. By keeping our clients informed and involved in decision-making processes, we are able to build trust and strengthen our relationships.
• Customized solutions and strategic advice: We understand that off-the-shelf solutions may not always meet our clients' specific needs. That's why we work closely with each customer to develop customized solutions and provide strategic advice tailored to their unique requirements and goals.

By prioritizing customer relationships and focusing on delivering exceptional service, Brookfield Business Partners L.P. (BBU) aims to create value for both our clients and our business, ultimately leading to long-term success and sustainable growth.

Channels

Brookfield Business Partners L.P. (BBU) utilizes various channels to connect with potential investment opportunities and investors. These channels include:

• Direct investment relationships: BBU has established direct relationships with companies seeking investment opportunities. Through these connections, BBU can identify potential acquisitions or partnership opportunities that align with their investment strategy.
• Company websites and digital platforms: BBU leverages their online presence through their company website and digital platforms to communicate their investment thesis, showcase their portfolio companies, and attract potential investment opportunities. These online channels serve as a hub for information for both investors and companies seeking investment.
• Industry conferences and networking events: BBU actively participates in industry conferences and networking events to connect with industry professionals, potential portfolio companies, and other investors. These events provide an opportunity for BBU to showcase their expertise and build relationships within their target industries.
• Financial advisors and brokerage firms: BBU also works with financial advisors and brokerage firms to reach a wider pool of potential investors. By partnering with these professionals, BBU can tap into their networks and expertise to attract high-net-worth individuals and institutional investors.

Customer Segments

Brookfield Business Partners L.P. (BBU) operates in various industries, providing services and solutions to a diverse set of customers. The following are the key customer segments that BBU serves:

• Institutional investors: BBU caters to institutional investors who are looking to invest in a wide range of industries. These investors often seek long-term growth opportunities and value BBU's expertise in strategic investments.
• Private equity firms: BBU works with private equity firms looking for strategic partnerships and investment opportunities. BBU's track record of successfully acquiring and growing businesses makes it an attractive partner for these firms.
• Government and public entities: BBU also engages with government and public entities, particularly in infrastructure and renewable energy projects. These entities benefit from BBU's expertise in project development and management.
• High net worth individuals: Lastly, BBU serves high net worth individuals who are seeking investment opportunities in various industries. These individuals value BBU's access to unique and compelling investment opportunities.

By focusing on these key customer segments, BBU is able to tailor its services and solutions to meet the specific needs and preferences of each group. This helps BBU strengthen its relationships with customers and drive long-term growth and success in the market.

Cost Structure

Brookfield Business Partners L.P. (BBU) has a comprehensive cost structure that encompasses various aspects of its operations. These costs play a critical role in shaping the financial performance of the company. Here are the key components of BBU's cost structure:

• BBU incurs costs related to the acquisition of businesses and assets. These costs include expenses such as due diligence, legal fees, valuation expenses, and other transaction-related costs. BBU carefully evaluates these costs to ensure that they align with the potential returns from the acquisitions.

• BBU has operational and administrative expenses that are essential for the day-to-day functioning of the business. These expenses include salaries, office rent, utilities, insurance, and other overhead costs. BBU closely monitors these expenses to maintain operational efficiency and profitability.

• BBU may incur investment management fees related to the management of its investment portfolio. These fees are paid to external service providers who help manage and monitor BBU's investments. Additionally, BBU may be subject to performance fees based on the financial performance of its investments.

• BBU may invest in marketing and client acquisition activities to promote its services and attract new clients. These costs may include advertising expenses, sales commissions, promotional materials, and other marketing initiatives. BBU carefully considers these costs to ensure a strong return on investment.

Revenue Streams

Asset management fees: Brookfield Business Partners L.P. generates revenue through asset management fees charged to its clients for managing their investments and assets. These fees are typically based on a percentage of the assets under management, providing a stable source of income for the company.

Performance fees and carried interest: In addition to asset management fees, BBU also earns revenue through performance fees and carried interest. Performance fees are earned based on the performance of the investments managed by the company, while carried interest is a share of the profits generated from successful investments.

Profits from the sale of investments and businesses: Brookfield Business Partners L.P. also generates revenue from the sale of investments and businesses in its portfolio. By acquiring assets, improving their value, and eventually selling them at a profit, BBU is able to realize significant revenue streams.

Dividend income from investments: Another revenue stream for BBU comes from dividend income earned from its investments in various businesses. As a holding company, BBU owns equity stakes in a diverse range of companies, allowing it to benefit from dividends paid out by these investee companies.