Think Like an Owner Heritage Holding's Alex de Pfyffer & Ross Porter - EP.239
Aug 27, 2024
Alex de Pfyffer and Ross Porter, founders of Heritage Holding, discuss their impressive growth journey, having built seven platforms through 25 acquisitions. They share insights on the strategic decision-making behind divesting businesses and how initial acquisitions shape future investments. The duo emphasizes the importance of a strong team in navigating rapid changes and fostering collaboration. They also touch on the value of partnerships with business founders, operational efficiency, and the fast-paced culture that drives their success.
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Industry Focus
- Prioritize industries where follow-on acquisitions are easy to integrate.
- Focus on scalable businesses to mitigate risks associated with small businesses, like key person dependencies.
Systematic Industry Selection
- Systematically evaluate industries based on revenue dynamics, fragmentation, and business model understandability.
- Analyze industry performance during economic downturns and pandemics to assess revenue resilience.
Balancing PE Interest
- Some private equity interest in an industry signals exit opportunities, but too much creates a crowded market.
- Target smaller, less organized companies that larger PE firms often avoid.