Garrett Shipp

investor in services businesses (B2B, financial and tech services)

ex-Investment Banking at BAML | ex-PE at HGGC | ex-operator at Integrity Marketing Group

[Garrett Shipp @GShipp]

@GerritWGong @Ch_JesusChrist Excited to hear you speak about this. AI (and Social Media) is a topic we are incorporating into our Deacons quorum often.

[Garrett Shipp @GShipp]

@guessworkinvest This is an important story on TAM….

[Garrett Shipp @GShipp]

@martial_mather @Maro_Elias @chamath Now do your clothes….

[Garrett Shipp @GShipp]

@RealAnkush @grok @nextdoorlabs @chamath @litcapital You can still delete your post, I think 😂

[Garrett Shipp @GShipp]

@sappholives83 @LTLLADY5180 There is actually an opportunity for all to learn about Jesus Christ after this life, which will take place before judgement. All of Gods children will have a fair judgement based on their opportunities or lack thereof. It’s beautiful.

[Garrett Shipp @GShipp]

@OneManLBO Totally feel this way when I’m in NYC

[Garrett Shipp @GShipp]

The story here isn’t about how to sell a business but the difficulty of competing directives. I lived this before as a former PE guy, then operator, where my CEO had me hold the line with the sponsors and I consistently was getting side eyed because of it. Drove me crazy, so I left.

[Garrett Shipp @GShipp]

@bonapartay Agreed. We bought one 6 hours door to door for my BIL, who was the ceo and it’s amazing the strain it put on him. Was the key factor on selling earlier than planned.

[Garrett Shipp @GShipp]

@YankeeGehrig4 @BigJohn043 @LeylaKuni Here’s your example:

Buy a business with 50% construction/install revenue and 50% service/maintenance revenue. From there, acquire service heavy targets until the split is 75/25 service/install. Ta-da the multiple will go up based on qualitative measures, not ‘market’.

[Garrett Shipp @GShipp]

There are lots of founder-run businesses that are bad for employees and communities. Underpaying employees, threats and avoiding following standard legal hr and compliance standards. The reality is that the same complaints of PE are true of family owned small businesses but PE has a tighter dispersion of outcomes.

[Garrett Shipp @GShipp]

@paulswaney3 Objection your honor, “phrasing!”

[Garrett Shipp @GShipp]

@AJ_Dybantsa Letsssss goooooo

[Garrett Shipp @GShipp]

@blueprintsmb22 These are the vibes I’m here for!

[Garrett Shipp @GShipp]

@sourcesandmuses @OneManLBO @Thejeremymhans Thanks. For the same quality asset, how much does that change for $1m ebitda and $5m ebitda?

I’m overly used to insurance brokerage where the multiples are very clear at different ebitda levels.

[Garrett Shipp @GShipp]

Calling my manufacturing homies (and well networked compadres)…

What’s your sense of multiples across different sizes of manufacturing businesses?

Core question is this:

- Manufacturing portco with $1M of EBITDA wants to acquire a similar business with ~<$3.5M of EBITDA but no succession plan. How reliably can we get multiple arb and what’s it take to get close to maxing multiple (not talking about manufacturing parts for SpaceX or a data center, just normal but niche products)?

@BoringBiz_ @OneManLBO @paulswaney3 @Will_Schryver

[Garrett Shipp @GShipp]

@wraithbrokerage Would love any color

https://t.co/gr6V60wzNv

[Garrett Shipp @GShipp]

@paulswaney3 Diversified niche auto. Reoccurring but tied to capex and municipal budgets (not new construction). Somewhere middle of the road to highly specialized, not just cnc or metal bending.

[Garrett Shipp @GShipp]

@paulswaney3 Diversified niche auto. Reoccurring but tied to capex and municipal budgets (not new construction). Somewhere middle of the road to highly specialized, not just cnc or metal bending.

[Garrett Shipp @GShipp]

@cjhuts That’s awesome.