SMB acquirer Colin King on Entrepreneurship-through-Acquisition and Search Funds

SMB acquirer Colin King on Entrepreneurship-through-Acquisition and Search Funds | S07 E36 – The Acquirers Podcast

Market views

Bullish

CROX— Crocs appears attractively valued with a market cap of $4.3B generating $960M in free cash flow, trading at approximately 4.5x FCF multiple
ECOMMERCE— E-commerce offers a more flexible business model compared to traditional businesses, with no need for physical location and ability to use third-party logistics
SMALLCAPS— Small-cap stocks outside of mega-cap tech appear broadly undervalued in the current market

Bearish

SEARCHFUNDS— Search funds and entrepreneurship through acquisition are not suitable for most people due to operational complexity
TRUCKING— Trucking is a terrible business with operational nightmares, poor return on headache, and constant staffing issues based on firsthand experience
LEG— Leggett & Platt made poor strategic decisions by leveraging up during COVID peak earnings to acquire another business at peak earnings, leading to significant problems as both businesses normalized
SWK— Stanley Black & Decker is experiencing a dramatic earnings collapse from COVID highs of $7-8 per share to near zero expected for 2025

Not investment advice.