The triple net feature allows for a more predictablecashflow stream because the building owner is not burdened with having to pay for the variable costs.
Which means King of Shaves will have a number of loyal customers, all purchasing new blades at regular intervals, providing King of Shaves with steady and predictablecashflow.
The biggest risk in many of the current batch of deals is that the private-equity firms discover the cash-flow models to be less predictable than they thought, says Colin Blaydon of Tuck Business School's Centre for the Study of Private Equity and Entrepreneurship.