The Intrinsic Value Podcast - The Investor’s Podcast Network MI310: A Serial Acquirers Deep Dive w/ Chris Mayer
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Dec 5, 2023 
Chris Mayer, an expert in serial acquirers, discusses the qualities that make them compelling investments. Topics include valuation, decentralization, leverage in mergers, scaling serial acquirers, and traits of successful acquirers. He also shares his favorite debt ratios and the importance of aligning incentives between companies. A fascinating exploration of the world of serial acquirers.
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Valuing Serial Acquirers
- To value serial acquirers, analyze return on capital (e.g., ROE) and reinvestment rate.
- Project compounded growth over a decade and compare the future value to today's price.
M&A Success Factors
- M&A is not inherently value-destructive; high-profile failures skew perceptions.
- Serial acquirers succeed by focusing on smaller, routine acquisitions within their expertise.
Acquisitions: Improvement vs. Rescue
- The best acquisitions improve the target company, not just the buyer.
- Strong acquirers spread best practices; failing ones seek rescue through acquisitions.