Anyone knows any precedent transactions of buying 2+ companies and merging?
November 10, 2019
by a searcher from London Business School in Mexico City, CDMX, Mexico
Hi all! We are looking into precedent transactions from previous searchers where there was a potential play for buying two or more companies that fit the investment criteria, yet individually these companies were below the EBITDA threshold (very fragmented industry), hence buying them separately and merging them was a strategic move. Does anyone knows if such a case exists in the search fund industry? We are aware of other cases were searches pursued greenfield initiatives with strong investment thesis and investors backed them, but not aware of a consolidation strategy.
Keen to speak to anyone that can share some insight.
Many Thanks
from Stanford University in Honolulu, HI, USA
* ^redacted’s interview about merging 2 companies that were a bit distressed: https://www.searchfunder.com/post/being-nimble-as-a-self-funded-searcher
* ^redacted’s interview on creating Trumpet Behavioral Health: https://www.searchfunder.com/post/the-marathon-begins-on-acquisition-day-searchfunder-interview
* ^redacted discusses the impact of layering risks with multiple acquisitions that ended up being impacted by customer concentration: https://www.searchfunder.com/post/be-wary-of-customer-concentration
* ^redacted’s interview about sourcing their add-on acquisitions: https://www.searchfunder.com/post/redesigning-a-plant-services-company-for-growth and
* ^redacted's interview with ^redacted on the Think Like An Owner podcast is here: https://www.searchfunder.com/post/my-interview-with-nick-haschka-from-cub-investments-tlao-ep-5
from Portland State University in Portland, OR, USA