Think Like an Owner Luis Reyes - Fire Protection Thesis in Spain - Ep.146
My guest on this episode is Luis Reyes, managing partner at Iberian Ventures in Spain. Luis worked in strategy consulting before acquiring small companies in Spain in a similar vein as the search fund model through Iberian. We kick off by talking about the buyout market in Spain and what makes it particularly attractive. For example, all private companies in Spain have to file their financials with the government. As a result, the full financial picture of any company in Spain can be found and sorted.
We also spend a great deal of time talking about one of their core investment theses, the fire protection market, and why it’s an ideal market for consolidation.
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Topics:
(3:42) - What is Spain like as a buyout market?
(9:05) - What are the regulations around requiring private companies to make their financials public?
(12:17) - Did you have any previous ties to Spain before deciding to plant roots there?
(13:52) - Was your previous career experience in finance and consulting helpful in working with business owners?
(15:12) - Can you give us a walkthrough of the companies you’ve purchased so far and how you structure acquisition?
(18:32) - What does the fire protection industry look like country-wide and how does it compare to how you’ve approached it?
(25:00) - What are financing options for acquisitions?
(26:33) - Can you walk us through an example of a transaction and integration?
(32:18) - What are your options for exiting?
(34:38) - What are the options or paths you’re thinking about in the long-term?
(36:07) - Do you see other Searchers in Spain stepping outside the traditional model?
(38:09) - What other industries do you find interesting and is there any limit to your team's capabilities to manage over multiple industries?
(42:13) - Are you raising money to build internal software?
(45:25) - What’s a strongly held belief you’ve changed your mind on?