4min chapter

Invest Like the Best with Patrick O'Shaughnessy cover image

Trish and James Higgins of Chenmark Capital - Permanent Equity - [Invest Like the Best, EP.28]

Invest Like the Best with Patrick O'Shaughnessy

CHAPTER

How to Balance Price, Multiple and Growth in Small Business Investing

The two key drivers of how successful this is going to be. So as you're acquiring the business and thinking about one, the right price to pay, but two, the potential for growth. With respect to the multiple, when we first got involved in this, we really got involved in it primarily from an investment perspectivereally sort of top down. We all sort of triangulated on this core back of the envelope thesis that multiples in this space are much lower than comps associated with larger LBOs or public equities.

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