In search of competition

I read Seth Godin’s recent post on competition with interest, as I do with most of his writings. Seth is an interesting and provocative thinker. What he evoked for me with this post was the competition that we are finding in the market for buying companies. Some market’s are getting just plain overpriced. So Seth’s short commentary read to me as a challenge: what are you doing in the face of competition? For us the answer is twofold (and I think we do have a few good answers). One, we look where competition is less. At opportunities that are not in the PE market’s flavor of the month but have solid long term prospects, might be smaller than where much of the competition prefers to play or may have some other wart that we see differently. However, we don’t just avoid competition. I really believe in our model, our long term investment focus and our ability to work with sellers and managers. Our ability to create a transaction that allows founders and managers to play along, benefit and even lead in the next chapter is a differentiator, and it’s one we’re happy to compete on.

Seth’s Blog: In search of competition