GROWTH POTENTIAL AND EXIT STRATEGIES FOR 'LOCALLY FOCUSED' BUSINESSES
Curious how do you guys view this matter and I appreciate any insights,
As I'm progressing in my search I'm looking at a lot of businesses that I believe have limited growth potential.
Most of the businesses I've seen are very geographically focused and don't necessarily have an offering that can expand beyond their area. Their addressable market size varies but ultimately my models show that even if their cash flows are decent, their exit potentials are low.
Ideally, the business would have the potential to offer its products/services elsewhere with no significant additional costs, but most of the time that's not realistic e,g: high-end cabinet makers/ most real-estate related businesses, local services, dealerships etc.
Outside of software, online services, e-commerce and manufacturing, how do you guys think about locally focused businesses, what weight does that have in your decision making and valuations etc?