Matt Bennett

family office private investments // tweet about buying & building great companies alongside great entrepreneurs and operators

[Matt Bennett @MattBennettTC]

@BillDA Hard to argue against riding the pet wave…

[Matt Bennett @MattBennettTC]

Hard to argue against the tailwinds in petcare

Pairing inelastic demand (i.e., growing humanization of pets)…

… with a large user base (& growing)…

… across a highly fragmented provider market

Its a powerful wave to ride + the tsunami is only picking up momentum

[Matt Bennett @MattBennettTC]

Big opportunity to build something meaningful w/ the support, resources, + good people to take things to the next level:

[Tim Ludwig @tsludwig]

🚨Call for Operators🚨

For much of 2021 I've been developing a new idea for entrepreneurship through acquisition (EtA) with a partner. We're not quite ready to pull back the curtains, but we're really close.

1/6

[Matt Bennett @MattBennettTC]

@jjtejkl I think M&A environment/trends… but not 100% certain yet! We’re recording Fri

[Matt Bennett @MattBennettTC]

Great opportunity for seasoned CFO w/ franchise or retail experience in pet space:

https://t.co/UG1KDeBAwk

[Matt Bennett @MattBennettTC]

Great overview on different financing structures

Creativity in deal structuring is often times the reason a deal does (or doesn’t) get done

Part of the ‘art’ is aligning incentives in a way that optimizes for what matters most to each person:

[Michael Girdley @girdley]

You want to invest in a private company via direct investment.

i.e. you're investing into a new or existing venture directly -- not through a sponsor or fund.

How do you get paid?

Here's a thread on all the structures I've seen.

1/x

[Matt Bennett @MattBennettTC]

A real differentiator among those I’ve worked/partnered with:

The best run toward the hard things… not away from them

This applies to work, personal, or otherwise. But it’s a muscle that is built, not inherited

[Matt Bennett @MattBennettTC]

The barrier to buy & build great companies has never been lower:

Helpful tweets + people to help make it happen:

[Matt Bennett @MattBennettTC]

@realEstateTrent Risk-adjusted return needs to be used more.

For some it’s synonymous with return, but not all… unfortunately…

[Matt Bennett @MattBennettTC]

@jspujji Great pod

The two big trends I spend a lot of time on:

1-software being built on top of existing PIMS (practice mgt systems) for services side…very early innings here

2-consumer 2.0/those building the One Meds & Tends of the world across diff components of petcare value chain

[Matt Bennett @MattBennettTC]

Parth is building some really cool things in public and sharing real insights:

[Dr. Parth @doctor_parth]

Roll up your sleeves...

Let's bootstrap your own roll-up to $150M 👇

[Matt Bennett @MattBennettTC]

@agazdecki @microacquire @BessemerVP Excited for you and the team!!

[Matt Bennett @MattBennettTC]

@dhaber @a16z Congrats David! Celebratory drinks are in order when in nyc next

[Matt Bennett @MattBennettTC]

QSBS can save you millions in taxes, but you need to plan ahead:

[Cameron C. Little @CameronCLittle]

Taxes... we all gotta pay 'em on both our labor & our investment returns.

But Section 1202/Qualified Small Business Stock (QSBS) can help you avoid 100% of capital gains tax on the sale of QSBS.

This holds in both the SMB world & for angel investors/VCs.

How this works 👇

[Matt Bennett @MattBennettTC]

@BrettAHolloway @lmmceo @Clearingfog_ Agreed!

[Matt Bennett @MattBennettTC]

Hard to argue against the tailwinds in petcare

Pairing inelastic demand (i.e., growing humanization of pets)…

… with a large user base (& growing)…

… across a highly fragmented provider market

Its a powerful wave to ride + the tsunami is only picking up momentum

[Matt Bennett @MattBennettTC]

@BrettAHolloway @lmmceo @Clearingfog_ Depends… on clinic (GP vs. Specialty and/or ER) and market (Top 10 MSA or not)

No doubt multiples are high for majority of single sites (>10x) but a small clinic strategy in Midwest trades diff than urban core play

[Matt Bennett @MattBennettTC]

@Clearingfog_ No doubt expensive for existing clinics, but prob some value to be had for rolling up a bunch of 1-2 DVM practices for <10x if can de-risk/grow offering

Even better though… do de novo model where you build for <2x maturity clinic-level EBITDA & get platform value of >20x :)

[Matt Bennett @MattBennettTC]

@mstillwell8 Lots of runway… although can be hard to compete w/ the big players who have multiple product lines (home, auto, etc) and can underwrite a huge CAC given LTV of a new cust

[Matt Bennett @MattBennettTC]

@bshyong I spend a lot of time in vet services across diff pieces of value chain:

- vet clinics (GP/ER/Specialty)
- daycare/boarding
- tele
- practice mgt saas
- aftercare/hospice
- lab/diagnostics

So Idexx/Petco/Chewy are tangential & public (but also seen quite a bit of appreciation)

[Matt Bennett @MattBennettTC]

@tsludwig @BillDA @kelceylehrich @BrentBeshore @steveressler @aebridgeman @WilsonCompanies @Sam_Rosati I’d echo what Tim is saying

Ultimately a signal of quality vs. quantity needs to be layered in (probably through pipeline review/lookback) to supplement raw outreach numbers and help make more meaningful