44 min listen
The $1B Lower Middle Market Holdco Built Around Customer Concentration, Diversity, and a Life of Purpose
The $1B Lower Middle Market Holdco Built Around Customer Concentration, Diversity, and a Life of Purpose
ratings:
Length:
38 minutes
Released:
Jan 24, 2023
Format:
Podcast episode
Description
My guest today is Tarrus Richardson, Founder, And CEO of IMB Partners. Tarrus has 25 years of private equity experience, has invested over $500 million of capital, and completed over 20 lower middle market acquisitions.
In this episode, you’ll hear why Tarrus and IMB decided to acquire companies with unusually high levels of customer concentration in the utility services sector, why diversity is a proven source of outperformance and competitive advantage in all their companies, and advice for anyone thinking of starting down a similar path in the lower middle market M & A space.
This podcast is produced by the team at Axial (www.axial.com). Axial is an online platform that makes it easy for small business owners to confidentially research and connect with top-ranked M&A advisors and capital partners. I am your host, Peter Lehrman, Founder and CEO of Axial. In every episode, we explore the vast world of small business M&A, interviewing both the proven and the emerging owners, operators, investors, and advisors whose strategies and methods are being put to the test.
If you enjoy the podcast, let us know by giving us a review on Apple or Spotify. If you’d like to go deeper, head to Axial.com, where there are dozens of recorded Axial member roundtables, downloadable tools for dealmakers, quarterly league-table rankings, and lots of other useful information. If you’re a business owner, professional acquirer or M&A advisor, you can start using Axial for free at Axial.com.
Discussion points:
LaFata and the Mid-Atlantic utility sector
IMB looks at outliers that others are not interested in
A Certified MBE business
Exelon Corp
Prioritizing diversity - the philosophy
Looking into the future - what changes, what remains
Lingering issues from supply chain and covid disruptions
Dreams of a $1B Holdco started at age 17
Staying within the lower middle market
Advice for someone starting today - narrow your focus, be at scale
Founders - selling should mean a change in responsibilities
The Q of E (Quality of Earnings) - sell-side vs. buy-side
Compliments on what Axial has built
Your first purchase may be difficult but gets easier every time
Resources:
IMB Partners
Released:
Jan 24, 2023
Format:
Podcast episode
Titles in the series (25)
Silicon Valley Tools & Technology arrives in the Lower Middle Market - a Conversation with Vinay Bachireddy: Joining me for this episode is Vinay Bachireddy, Managing Partner at Weave Growth Partners. Weave is pioneering a technology-led approach to operational transformation of lower middle-market businesses. Weave is a private investment firm based in Silicon Valley. As experienced investors, entrepreneurs and operators, they partner with management teams to create long-term value and bring technology expertise to their portfolio companies. They bring a technology-enabled playbook of analytics and automation commonly used in high-growth Silicon Valley startups to potential portfolio companies. Join us for a discussion on how Weave approaches companies, their sensitivity to maintaining company culture, and the steps they take to acquire investment portfolio companies and implement new tech. From discussing tech as early as the pre-offer stage to working through digitization, analytic by Masters in Small Business M&A