10+ hours of podcasts, in 5 minutes.
5 quotes from 1 episode on Karma School of Business, each with a timestamped link to the source.
Dave Santoni explained that private equity firms accelerate organic company growth through continuous regional acquisitions. Investment targets include niche businesses with earnings from $5 million to $75 million.
Dave Santoni detailed a strategy of targeting low-priced products that enter markets with steep financial consequences for failure.
“We'll look for deals with a small priced product that goes into an end market that there's a high cost of failure…”
From Audax Private Equity's Playbook: Niche Leaders and Buy-and-Build M&A
A preference for relationship building led Dave Santoni to draft a 2003 business plan proposing dedicated sponsor coverage.
“What I realized was what made me most happy about the job was the relationships that I could build. And that's when, in 2003, I gave a business plan to my partners at Goldsmith and said, 'I would like to do sponsor coverage, which didn't really exist back then.'”
From Audax's Dave Santoni on the Invention of Sponsor Coverage
Dave Santoni mentioned platforms starting at $5 million to $20 million in earnings for lower middle market funds. Middle market funds pursue companies making $20 million to $75 million.
“In our lower middle market fund, We'll do platforms as small as 5 million of EVA DAW to 20 and then in our middle market fund kind of 20 to 75…”
From Audax Private Equity's Playbook: Niche Leaders and Buy-and-Build M&A
Buying smaller businesses helps niche market leaders expand. Dave Santoni described buy-and-build strategies as a primary method to increase baseline company expansion rates.
“…finding niche market leaders and very often regional smaller businesses that have sit in a large market that we can employ all of our value creation methodologies including our buy and build which is what we've been known for for a very long time to really turbocharge organic growth.”
From Audax Private Equity's Playbook: Niche Leaders and Buy-and-Build M&A
“If we can find a business that through acquisition we can accelerate the organic growth of the business…”
From Audax Private Equity's Playbook: Niche Leaders and Buy-and-Build M&A
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