What's Your Dream PE Deal?
Read a fantastic article in NYT about PE shops disrupting the day care/children's play center businesses. Slashing headcount, streamlining processes, increase in pricing, there wasn't one stop these players didn't pull out. Problem is this was a barbarians at the gates moment because the businesses are seeing a vast decline in business and the changes have been anything but smooth. Got me thinking about some creative deals. What's your dream deal? Mine would be to roll up Lego or Kith.
Acquiring pornhub.
It cracks me up how the guys who founded Mind Geek/PornHub formed a Constellation Software copy cat to manage their money. It's grown to a pretty notable size too.
with $100M from Viking Global too
What's it called?
Chick Fila 15%+ revenue growth day one by opening on Sundays
They are probably one of if not the best franchises out there. Don't believe you would even have the option to make a change like that unfortunately since your only choice is to follow franchise rules. And the requirement for having worked at one for a number of years to even get the chance is unfortunate but probably helps maintain the brand.
I literally was just talking about this with someone. At some point, a Kendall Roy in the family will make them open on Sundays (which could be a huge day for them). I think when the business was only southern based it might have meant something, but as it grows the closed on Sunday message loses purpose and sincerity, especially as a franchisee. Even if they opened on Sunday and used the profits to reinvest in training/marketing/literally anything, it would be a win
That’s the thing though - they don’t need to reinvent anything. Every now and then they’ll bring a new menu item out, but even then, they rarely do limited time offerings. Pimento cheese sandwich was one, but they realized it wasn’t as efficient. Peppermint shake is example of LTO that is a great success.
Adding Mac and cheese was a game changer. They studied adding it for several years. When you go to Chick-fil-A you as the customer know exactly what you’re going to get. Great food and service.
Opening Chick-fil-A on Sunday isn’t a good business decision. I don’t think the additional revenue would be worth it. Chick-fil-A is something that has grown to the top of its industry by doing what to was founded to do
Rolling up regional healthcare providers onto one platform and sell to a strategic (aka a Walgreens / CVS, I guess UHG / Optum too but have spoken to more than one CEO / founder who wouldn't work with them -- terrible integration and little to no added benefits as a buyer).
My previous employer did something like this and all the cofounders made millions. Won't say which company but it was a "WSJ headline" type of deal. Easier said then done as an investor though. I've seen some healthcare rollups fail miserably especially if they're focusing primarily on a specialty but are spread across the country rather than having a regional focus.
I just wanna roll up car washes and port-a-potties😫
Rolling up football and sports teams (e.g. City Football Group) although hardly creative nowadays, a bunch of players doing that. But the structural limits to ownership in various leagues (can typically only have interests in one team) means that there is the space for a lot of such roll ups.
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