A Serial Acquirer Masterclass

Buyer and Builder,

Below is an excellent example that shows that you are not in a rush as a capital allocator…

What began as a handful of acquisitions 20 years ago has evolved into a holding company comprising 250 businesses!!!, organized across three core segments: Dental, Demolition & Tools, and Systems Solutions.

With a main focus on: 1) profitability; 2) and a highly decentralized operating structure.

A true safe haven for small and medium-sized businesses where they acquire and develop market-leading niche companies with the potential to deliver sustainable earnings growth and robust cash flows.

The EBITA growth trajectory of Swedish serial acquirer Lifco:

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Alongside the newsletter I sent on Monday after attending the Serial Acquirers event in Stockholm, I also put together a solo research episode unpacking the biggest lessons from the trip.

You can listen on 2x during a morning run, over lunch, or while getting in your evening 10,000 steps.

The core ideas are timeless. They are as relevant today as they will be next year or several years from now, especially if your goal is to build a portfolio of niche, cash-flowing businesses, whether through control deals or even small minority positions.

You’ll find links to the main podcast platforms (Spotify; Apple podcasts and YouTube), along with the topics covered in the episode, so you can see at a glance which part is most interesting for you.

-The big ideas from 36 serial acquirers
-Why slower can actually win early in serial acquisition
-How great serial acquirers solve the reinvestment problem
-What actually drives compounding
-How to truly study operators and companies

Lastly, if you want access to proprietary deal flow, I want to mention today’s sponsor, CapitalPad. Their team has built a platform focused on profitable, so-called “boring” businesses in the $2 million to $15 million EBITDA range.

They are firm believers that the lower middle market remains one of the most attractive asset classes available.

To date, they have completed 10 acquisitions and are currently pursuing two live deals, each with a projected IRR of 25% or more.

For accredited investors, there is an opportunity to invest alongside them. That said, while the current live deals are underwritten to projected IRRs of 25% or higher, there are, of course, no guarantees in investing and this does not constitute investment advice.

You can review the opportunity yourself at CapitalPad.com. CapitalPad is also a sponsor of this newsletter, so this is not investment advice, and you should conduct your own due diligence.

That’s all for today.

Talk to you very soon.

Best,
Mike Markus / PrivateEquityGuy