Buy Then Build

In Buy Then Build, Deibel takes the view that there is an unbelievable opportunity to take part in what is often referred to as a "Search Fund". These are small to midsize businesses where an individual person can swoop in, purchase a business, and (ideally) sell it for a profit a few years later. It's essentially Private Equity on a smaller scale.

Deibel undeniably has experience in the area having gone through the process a few times. This is clearly a business model that needs to exist, as small business owners often encounter circumstances where they need to sell their businesses, and there are often good deals to be had at this sized firm. His take that networking is the key to the business is undoubtedly correct.

That being said, I do take issue with a few of Deibel's assumptions throughout the book. First, on the fact that now is the perfect time to be doing a search fund. This is despite the fact that number of people doing search funds has increased 40% YoY for the last 5 years, so clearly the market is becoming more saturated.

The next assumption is the idea that 10% is the minimum expected growth rate once the new owner takes over. It seems like he pulled this number straight from his ass. Growing at that rate, despite entering a new business, in a new location, with no pre-existing relationships, and skeptical employees and customers, is a fair weather assumption if I've ever seen one.

The final assumption is the idea that business school is the best way to prep for these sorts of goals. Why? Because a few top business schools offer programs on it. Why not go learn the industry, network, and get a job at company in the industry before trying to break in blind like a messiah.