The Intrinsic Value Podcast - The Investor’s Podcast Network

MI310: A Serial Acquirers Deep Dive w/ Chris Mayer

Dec 5, 2023

Chris Mayer, an expert in serial acquirers, discusses the qualities that make them compelling investments. Topics include valuation, decentralization, leverage in mergers, scaling serial acquirers, and traits of successful acquirers. He also shares his favorite debt ratios and the importance of aligning incentives between companies. A fascinating exploration of the world of serial acquirers.

56:21

Episode guests

Chris Mayer

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Highlights

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Episode notes

Podcast summary created with Snipd AI

Quick takeaways

Serial acquirers offer a sustainable way to compound value for shareholders by having high returns on capital and the ability to reinvest over the long term.

Successful serial acquirers exhibit traits such as a decentralized model of operation, routine and disciplined acquisitions, and a focus on smaller, more compatible businesses.

Differentiating serial acquirers can be challenging, but finding those with a strong cultural fit, disciplined acquisition criteria, and a track record of high returns on capital can indicate long-term success.

Deep dives

The Appeal of Serial Acquirers

Serial acquirers are appealing to investors because they have high returns on capital and the ability to reinvest over the long term. They offer a sustainable way to compound value for shareholders. Additionally, they often own multiple businesses, which makes them resilient and less dependent on the success of a single product or service.

Importance of Total Growth and Positive Organic Growth in Companies

01:53

How to Calculate Your IRR

02:52

Introduction

3min

Introduction to Serial Acquirers

19min

Strategies of Serial Acquirers and the Difficulty of Turnaround Acquisitions

4min

Acquisition Criteria and Management Incentivization

12min

Issuance of Shares, Debt to EBITDA Ratio, and Access to Debt

3min

Home Value, Shopify E-commerce, and Masterclass with Whitney Wolf Herd

3min

Serial Acquirers: Preference for Non-Equity Issuances

15min

Monitoring and Evaluating Cereal Acquirers

2min

Kyle Grieve chats with Chris Mayer about the special qualities of serial acquirers that make them compelling investments, tricks on how to value serial acquirers, the importance of decentralization for successful serial acquirers, the proper dynamics to look for between an acquirer and the acquired, the proper uses of leverage to use in mergers and acquisitions, characteristics to look for in scaling serial acquirers, the proper manage traits to look for in highly successful serial acquirers, and a whole lot more!

IN THIS EPISODE, YOU’LL LEARN:

00:00 - Intro

04:05 - Successful acquisition strategies.

41:56 - What to look for in scaling serial acquirers.

10:16 - The general aspects of great serial acquirers.

16:05 - Key differentiators between exceptional serial acquirers.

07:05 - Chris’s favorite debt ratios to examine for acquisitive businesses.

And much, much more!

*Disclaimer: Slight timestamp discrepancies may occur due to podcast platform differences.

BOOKS AND RESOURCES

Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Kyle and the other community members.
Read Chris’s blog here.
Buy a copy of 100 Baggers: Stocks That Return 100-to-1 and How to Find Them here.
Buy a copy of Deals from Hell: M&A Lessons that Rise Above the Ashes here.
Related Episode: Listen to TIP569: An Investor’s Guide To Clear Thinking w/ Chris Mayer, or watch the video.
Related Episode: Listen to TIP543: 100 Baggers: Stocks That Return 100-1 w/ Chris Mayer, or watch the video.
Related Episode: Listen to MI276: Finding 100 Bagger Stocks w/ Chris Mayer, or watch the video.

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