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Tom Klein - Pre-Close M&A Value Creation Playbook Ep.220

Think Like an Owner

NOTE

Rule of 15 or 20 in Business Strategy

In business strategy, it is more favorable to have a rule of 15 or 20 rather than rule eight, as having a long tail of medium to small size businesses allows for room to grow and facilitates potential mergers and acquisitions. This approach leads to a more robust industry, opposed to being top-heavy with a few dominant players. Furthermore, competing against smaller players offers the advantage of facing less sophisticated competition and can be akin to being a big fish in a small pond, which can be a rewarding experience, although these smaller players may lack business acumen or fell into the business unintentionally.

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