Acquiring Minds 7 Years Later: Leaving Wall Street to Buy Small Businesses
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Jan 31, 2022 James and Palmer Higgins, co-founders of Chenmark, made the leap from successful Wall Street careers to acquiring small businesses. They discuss the power of delayed gratification and the intellectual trade-offs between corporate life and entrepreneurship. With insights from over 30 acquisitions, they share lessons learned, strategies for navigating increased competition, and the risks involved in buying small versus big. Their diversified approach to holding companies highlights the advantages of investing across various industries, while underscoring the importance of fit and values in long-term success.
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Small Biz Math Meets Personal Values
- Buying small, profitable businesses at low multiples can generate attractive returns compared to public markets.
- Chenmark combined that math with a personal preference for autonomy and tangible impact.
Develop A Delayed-Gratification Muscle
- Build an extreme delayed-gratification muscle before committing to a multi-decade holdco thesis.
- Be willing to bet on yourself and accept slower early financial returns.
Breadth Trumps Repetitive Depth
- Small-business work trades depth for much greater breadth of experience across functions.
- That breadth accelerates learning and feels more intellectually stimulating over time.