Acquiring Minds The Model for a 3-Way, Long-Term Holdco
Oct 7, 2024
Marc Nzojibwami, co-owner of ABL Imaging Group, shares insights from his journey building a long-term holdco in Calgary. He discusses the initial struggles of launching businesses in university and the power of partnerships in acquisitions. After acquiring a 40-year-old sign shop, they grew EBITDA by 30% in just a year. Marc emphasizes the importance of deal structuring and navigating financial constraints in Canada, alongside the resilience of the sign-making industry amidst economic shifts. Tune in for his practical strategies and future acquisition plans!
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Scratch vs. Acquisition
- Starting a business from scratch is challenging, especially finding product-market fit.
- Existing businesses, despite operational flaws, offer a shortcut to market validation.
Partnership Formation
- Marc connected with two partners, a lawyer and his brother-in-law (finance background), to pursue acquisitions.
- They formed a mastermind group, analyzing deals and gaining experience together.
Realistic Acquisition Size
- Initial expectations of acquisition size were adjusted after discussions with banks.
- Focusing on smaller businesses, between $800,000 and $1.5 million in enterprise value, became more realistic.