Acquiring Minds Art of the Roll-Up: 40 Businesses in 4 Years
22 snips
May 20, 2024 
Entrepreneur Jeff Homer discusses transitioning from high finance to acquiring and scaling music schools. Topics include artist's aversion to selling, profitability of music vs. dance, importance of general managers, using apps for operations, and potential in other industries. He shares insights on acquiring a music school every month, raising growth equity, and the challenges and rewards of business consolidation and scaling.
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Side Hustle Turns Music Rollup
- Jeff Homer bought a $500,000 local music school as a side project while working in finance.
- He found it fun, connected to his musical background, and quickly saw operational improvements to make.
Lower Market Quality Premiums Small
- Lower middle market businesses have smaller valuation premiums for quality compared to public markets.
- This creates an opportunity to buy higher quality companies at relatively low multiples.
Sticky Customers, Operational Gaps
- Music schools have sticky customer relationships due to long-term student-teacher bonds.
- Many operators focus on teaching and neglect operational efficiencies, creating value creation room.