Buyers and Builders
00:16:09 · Mikk
He helped him accomplish something first, build trust and develop the relationship that became valuable for both of them over their long careers. And I have to bring up this, Marc said so many times, find people who have done it before, call them, write them big. Because if you're maybe buying your first company, there are people who have already bought 10. If you're building a roll up, there are people who have successfully built platforms and others who have made expensive mistakes already. If you're trying to raise capital, there are investors and entrepreneurs who've already navigated the process. Why wouldn't you learn from them? You want to be, how was the saying? You don't need to do all those mistakes yourself. You can just learn it from others. One of the most unappreciated forms of leverage in business is simply being willing to ask intelligent questions of people who know more than you and who have experienced more than you. Yes, you may have to create your own path in life, but you don't have to figure out everything alone. I say that again. You may have to create your own path in life, but you don't have to figure out everything alone. When he was building Dragoneer and raising money from institutional investors, they often struggled to categorize his strategy. Was it the hedge fund, private equity, growth equity, public markets, private markets? It didn't fit neatly into the existing categories. Marc would joke that they needed to create the new category called miscellaneous. He makes the point that some of the most attractive opportunities exist in that miscellaneous category before everybody else has figured out how to define them. Again, fascinating observation because so much of business is built around copying models that have already worked and there is enormous value in learning from successful investors and entrepreneurs. But if all we are doing is copying what everyone else is doing, where does our advantage come from? Sometimes the opportunity is in, let's take an overlooked industry or an unconventional acquisition structure or a business model that doesn't fit neatly into established category. Sometimes you have to invent your own approach and perhaps that's the thread that connects all of Marc's stories. Number one, he didn't grow up with a kind of background that made an investment career an obvious path.
00:18:32 · Mikk
Number two, he didn't fit the traditional recruiting model at TPG. And number three, he didn't want to compete with 500 other investors using exactly the same information. But at the same time, he learned to be selective. He was able to seek out exceptional mentors and he was able to recognize those great businesses putting together these extremely complex structures to get the deal done. So to summarize, can we say you shouldn't let other people define the limits of your ambition? Because whatever you're trying to build, there will be situations where the answer isn't very obvious. Maybe you're trying to buy your first company and don't have relationships or capital you'd like. Maybe you are building a roll up and competing against much larger firms. Maybe you're dealing with an acquisition that hasn't worked out as planned, or maybe there's simply something you've wanted to attempt for years, but you've convinced yourself you aren't quite ready. I mention all those things because I hope these stories encourage you to question some of those assumptions. You can always reach out to people you admire. You can learn from people who have already done what you're trying to do. You can look for creative ways to solve problems. And don't assume that the resources you currently have define everything you're capable of accomplishing. Important, I've been taking notes here. Be selective, protect your capital and your reputation. Choose the right people and remember that doing more isn't always the same as doing better. And here I'm referring to the amount of deals they've done. They haven't done hundreds of acquisitions. They've been just finding those exceptional companies at the right time on a fair value, then they were just going all in. And perhaps most importantly, remember Marc's idea of the inner flame. Sometimes it's one you have to create. And before I wrap up, I want to make one invitation. If you're building an acquisition platform, actively buying companies or thinking seriously about starting that journey soon, I'd love to hear from you and what you're working on. And equally, if you're sitting on the other side of the table, perhaps you're an investor, family office, a high net worth individual, or just an allocator looking to get access to exceptional people building businesses in the lower middle market, please know this, I'd love to connect.
00:20:56 · Mikk
Or perhaps you're one of the rare people who can really make a difference in this space. You're a great CEO, CFO, head of M and A, or just an operator who wants to partner with an ambitious entrepreneur and help build something extraordinary. Same here, please. I'd love to meet you too. We've been doing this for three and a half years. We've been connecting with, learning from, building relationships across this ecosystem, and I generally feel like we're just getting started. One thing I've learned is that the best relationships are often built long before there is a transaction, long before there is an investment or just an opportunity to work together. Whether there's something we can do together today or perhaps a few years from now, it would be great to get to know you while we're still young and early in this journey. You can reach me on X, on LinkedIn or directly by email. Tell me a little bit about yourself and what you're working on and I hope at least one of these stories makes you think a little differently about whatever you're trying to accomplish within the next six, twelve, eighteen months. That's my sincere wish that this is true. Thanks for listening to Buyers and Builders, and until next time, keep building.