For outsized equity returns, you need to expand the multiple. How?
(1) Buy cheap. Proprietary sourcing or asymmetric insights can help you ink a deal below market value.
(2) De-risk yellow flags. Mitigate or eliminate the factors that concern buyers (concentration, key people risk, etc.).
(3) Grow profits. Bigger businesses are more robust, generate more cash flow, and attract bigger capital providers, all of which enhances the valuation.
That's it! Super easy. 😅
