If you're looking to acquire an SMB, high margins are great, right?

Usually, yes.

Sometimes, no.

You need to understand why.

👇 High margins typically reflect product differentiation, a need-to-have vs nice-to-have product, efficient mgmt, pricing power, competitive moats, etc.

But here's the thing. They can also be a 🚩🚩.

👇

Attention to detail...

One of the scariest (and strangest) moments of my early investment banking career taught me a critical lesson.

👇 I was a first year associate, maybe two months on the job. We had a meeting with the senior mgmt team of a huge corporate and I was tasked w FedEx'ing a bunch of follow-up info.

2/13

I wasn't smart enough to get into an Ivy League MBA program.

But I did.

Because I failed.

👇 I've always been an aspiring entrepreneur. I started a driveway sealing business in high school. Tried to launch a small sportswear concept in college.

But heading into my senior year I started a business that changed everything.

Hey #SMBtwit,

Have you ever thought about HOW you ask questions during diligence? I mean, really thought about it? Because how you ask questions matters, a lot...

🧵👇 You're all smart people. You're acquiring a business, so you know what information you need to look for. How you unearth the info you need is very important. You need to be strategic w/ your questions. 2/13

Yesterday's golf tweet got this Twitter noob some much needed followers, so will post one more.

My dad used golf to teach me a huge life lesson.

Well, several actually.

🧵👇

1/9 Despite growing up in Canada, my dad was a great golfer. The other side of scratch kind of golfer. To me, he was Lefty long before Mickelson. In his later years he tried to get his senior PGA card. He was great.

2/9

I had a client ask me if I love what I do yesterday. 🧵👇 My reply: “Thhhhhhatttt’s a good question. Do I love what I do? Hmmmm.” At first, I was rattled I didn’t instantly respond “Yes!” I mean, shouldn’t we all be 100% jazzed about this SMB life we’ve chosen? Did my pause reveal something? (2/7)

Why will this recession be different than 2008 / 2009 for SMB? A short 🧵👇. Tech has been democratized. There’s an app to streamline or automate so many processes. And if there isn’t, there’s an opportunity to build a low code / no code solution. Automation drives cost savings and scalability, and it’s accessible to even the smallest of SMBs. (2/5)

As an #smbtwit newbie, wanted to introduce myself. Short 🧵👇. Born and raised in Canada. Moved to US for grad school. Then to bulge bracket IB (DLJ / Credit Suisse) to do M&A and sponsor coverage in NYC. (2/8)