Brad Hathaway, Managing Partner of Far View Capital Management, joins the podcast today to discuss what he thinks is a compelling setup at Distribution Solutions Group, Inc. (NASDAQ: DSGR), a premier multi-platform specialty distribution company providing high touch, value-added distribution solutions to the maintenance, repair & operations (MRO), the original equipment manufacturer (OEM) and the industrial technologies markets.
For more information about Far View Capital Management, please visit: https://www.farviewcapitalmgmt.com/
Chapters:
[0:00] Introduction + Episode sponsor: Alphasense
[3:11] Quick overview of Distribution Solutions Group $DSGR and why it's interesting to Brad
[4:40] Overall $DSGR setup, starting with rights offering
[7:07] $DSGR business overview (all three businesses), direct comps, competitive sales advantage, customer retention
[19:51] $DSGR transaction (LKCM involvement) and why do all three businesses belong together?
[29:23] $DSGR thesis and LKCM's history with specialty distributors
[36:20] $DSGR valuation, what type of organic growth would $DSGR show without future acquisition, how much of the industry is still in-house, roll-up strategy multiple
[46:00] Scaling $DSGR business, capital allocation and tail risks
[57:22] Scaled specialty distributor that has not worked
[1:01:11] Path to liquidity, management and LKCM alignment
Today's episode is sponsored by: Alphasense
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