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
This episode is brought to you by AlphaSense, the AI platform behind the world's biggest investment decisions. The right financial intelligence platform can make or break your quarter. AlphaSense is the #1 rated financial research solution by G2. With AI search technology and a library of premium content, you can stay ahead of key macroeconomic trends and accelerate your investment research efforts. AI capabilities, like Smart Synonyms and Sentiment Analysis, provide even deeper industry and company analysis. AlphaSense gives you the tools you need to provide better analysis for you and your clients. As a Yet Another Value Podcast listener, visit alpha-sense.com/fs today to beat FOMO and move faster than the market.
Yet Another Value Podcast