Webinar: How Peter Lang Did 22 Off-Market Deals (Wednesday 10/1)

This Week in ETA:

• Searchers: We’re hosting a webinar with Peter Lang, who will be sharing how he sourced, diligenced, and structured 22 off-market deals (register here). Join dozens of other searchers on Wednesday, October 1st at 2pm CT. Peter will break down how he found his deals and his unique approach to off-market due diligence, which gives him far more information pre-LOI than the average business buyer. 

• Investors: 99% of the time, we don’t like investing in roll-ups. Call it controversial, but we think acquiring and running one business is hard enough - and if you’ve never done it before, we advise against acquiring more than one and trying to integrate them as a strategy. While roll-ups look great on spreadsheets because of multiple expansion, it’s far more complex than it looks. If a searcher finds an organic bolt-on business to acquire down the road, we love that. But if their initial strategy is to roll up multiple businesses from day one, it’s a pass for us.

Plus:

• Beware the J-curve on your acquisition. So many reasons why growth can initially dip, but I loved this list as a reality check that 1) it happens and 2) to be prepared when it does.

• Sending quarterly investor updates during your search keeps you top of mind, encourages reflection on what’s working (and what isn’t), and provides accountability for your progress. While I don’t think this is necessary for a first point of contact, it’s a great way to earn trust and stay connected to investors over the (often long) journey to acquisition.

Question:

Hit reply and tell us - What’s your stance on roll-ups?