In the world of small business, mergers and acquisitions are powerful strategies that transcend mere growth tactics used by large corporations. They offer transformative potential, paving the way for substantial wealth creation and expansion.

Why small businesses? Here’s the compelling case:

1. Instant Market Entry: Acquiring a small business allows us to immediately gain a presence in a market, and immediately create revenue streams. It’s an effective way to establish a foothold in your industry.
2. Low Valuations: Small businesses often sell at EBITDA multiples of 3x-5x, making acquisitions a financially savvy method to secure steady cash flow and valuable assets without overpaying. This means higher returns on investment as compared to organic growth alone.
3. The Option to Acquire our Competition: The initial acquisition in each industry acts as an option for further acquisitions in that same industry, with the aim of transforming several smaller companies into an efficient large scale network.
4. Acceleration in Scaling: Strategic acquisitions offer a faster path to scaling operations and competing in saturated markets. This strategy unlocks exponential growth by leveraging well-calculated investments rather than building from scratch.

Arbitrage – moving each company acquired in the private value world to the public value world – is an important part of our strategy for value creation.