When evaluating the valuation of a company like LIFCO, it's important to consider metrics like free cash flow and return on capital (ROE). A high valuation based on earnings multiples may not be a concern if the company is reinvesting a significant portion of its profits and generating compounding returns. Looking at the long-term potential and sustainability of the business is crucial. By understanding the economics and owning a stake in the company, investors can gain deeper insights and overcome hurdles.
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.
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