E140: Building A Diverse And Resilient Holding Company: Lessons From Trish Higgins

How2Exit: Buy, Don't Build - M&A of Small Businesses

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E140: Building A Diverse And Resilient Holding Company: Lessons From Trish Higgins

Trish Higgins Trish Higgins is a founding partner at Chenmark Holdings, a Portland, Maine-based Holdco

Ronald Skelton

Sep 08, 2023

About The Guest(s): Trish Higgins is a partner at Chinmark Holdings, a family-run business that specializes in acquiring and managing small to medium-sized businesses. With a background in finance, Trish and her team have successfully acquired and grown multiple companies across various industries.

Summary: Trish Higgins, partner at Chinmark Holdings, shares her journey in the world of mergers and acquisitions (M&A) and holding companies. She discusses the importance of building a diverse portfolio of businesses with steady cash flows to provide long-term stability and resilience. Trish emphasizes the challenges of finding the right operators for acquired businesses, highlighting the need for values alignment, trust, and analytical capabilities. She also delves into the psychology of emotional sellers and the importance of approaching negotiations with empathy and understanding. Additionally, Trish emphasizes the significance of creating a positive company culture and the role of talent pipelines and training programs in ensuring a smooth transition and cultivating potential leaders for acquired businesses.

Key Takeaways:

Building a diverse portfolio of businesses with steady cash flows can provide long-term stability and resilience.
Finding the right operators for acquired businesses requires time, patience, and a focus on shared values and analytical capabilities.
Emotional sellers may have difficulty letting go of their businesses, so it's important to approach negotiations with empathy and understanding.
Having a talent pipeline and training program can help ensure a smooth transition and provide a pool of potential leaders for acquired businesses.

Quotes:

"The more uncorrelated the cash flows of your portfolio, the more durable and valuable it becomes." - Trish Higgins
"When hiring operators, values alignment and trust are key, followed by analytical capabilities." - Trish Higgins
"Understanding the psychology of sellers and being patient can lead to better outcomes in deal negotiations." - Trish Higgins

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How2Exit: Buy, Don't Build - M&A of Small Businesses

Welcome to How2Exit, the premier podcast for entrepreneurs, advisors, and everyone in between who wants to dive deep into the world of buying, growing, and selling small businesses valued below $20 million. Our mission is to equip you with the insights and strategies you need to succeed in the small business M&A space. Join us as we talk to the best in the industry and explore the full process of buying, growing, and selling businesses. You'll gain invaluable knowledge from interviews with successful entrepreneurs who have navigated the M&A journey and experts who offer their wisdom on sourcing deals, building rapport, conducting due diligence, closing transactions, integrating acquisitions, and preparing for a successful exit. We cover it all, so you can make informed decisions and take calculated risks. At How2Exit, we pride ourselves on providing an unmatched resource for those looking to thrive in the small business M&A world. Whether you're a seasoned entrepreneur, an aspiring business owner, or an advisor helping clients navigate the complex process, our podcast is your go-to source for the latest tips, trends, and real-world case studies.Tune in and discover the secrets to mastering small business M&A and achieving your goals in the world of entrepreneurship. Don't miss a single episode of How2Exit – subscribe now and unlock the full potential of your next business venture! Keywords: small business, M&A, entrepreneurs, advisors, buying businesses, growing businesses, selling businesses, due diligence, sourcing deals, rapport building, closing transactions, integrating acquisitions, preparing to sell, interviews, experts, case studies, How2Exit.

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