Tucker's Farm Corporation

teddy tucker ~8lbs and sweet annie healthy. Not the cleanest family shot but you do your best with these things But man cut this one close – Tucker's Farm Corporation is like a par 9 away from Bermuda’s hospital but I was halfway to Chicago 😬 for the Ted Seides Capital Allocators emerging manager summit when I got the call. Needless to say senior management was not thrilled! (🙏 BermudAir. When I landed in JFK and needed to turn around and head home – the soonest flights were next day. Then I remember Bermuda air out of Westchester is not caught by the aggregators/OTAs (expedia etc)! So ubered to westchester and was back rock by 9pm. Jumped on my moped in airport parking lot and was at hospital by 9:36! Missed showtime by 8 min 🥴 but it’s the effort that counts right?) -- (pls send any $2m+ EBIT businesses our way (never above a plug!))

man 1956 doesn’t feel long enough ago for the then biggest IPO in history (Ford Motors, ~$660m) to net Goldman only $250k in fees (today dollars: ~$8bn IPO, ~$3m in fees, i think). need to send this to our advisors and get this level of partnership!! (The Partnership: The Making of Goldman Sachs, Ellis, 2008) -- Pls send Tucker's Farm Corporation any $2m+ EBIT assets!

🚨 Annie Aesthetic (botox Holdco) closes Series B, ~$200m valuation, ~$65m in revs! Mostly injectables. Remarkable work by team:   >They ignored peak botox animal spirits and stayed super disciplined on capital allocation/equity efficiency.   (this was a real thing – I remember* running into a medspa seller at my cousins wedding w $2m topline referring to her biz as ‘ARR’ (it wasn’t) worth ‘5x revs’ (it wasn’t))   Super easy to buy EBITDA. Hard to buy (mostly) good EBITDA at (mostly) good prices.   >They also ignored my skepticism of integration. And built genuinely great operations team, playbook etc.   JP W. Allison Fleischer Ebony Conditsis Mark Fruce Samuel Schloss Scott Barnett Lenda Jackson, MBA   (* using ‘remember’ loosely here - had been a touch overserved that night 😬) -- please send over any $2m+ cash flow assets!!

🚨biggest strategic decision of yr for the farm – ‘26 t design. If you vote in comments we’ll ship you one (I swear on my mother in law 😎)1. Confetti goat or DJ goat. (and sry for the blurriness, I can't for the life of me figure out how to upload a high res pic to linkedin) -- Pls connect w Tucker's Farm Corporation if selling: 1️⃣franchisors 2️⃣medspas 3️⃣multi-site generally (if strong ROIs + scaled cash flow/box + not faddy) 4️⃣nubian half-pygmy goats 5️⃣fragmented royalty classes 6️⃣niche home/commercial services generally 7️⃣niche business services 8️⃣locksmiths / access-control assets 9️⃣niche infrastructure (if small / fragmented category) 🔟VMS (or plug-ins/apps/low-churn-digital-stuff) (or any smallish biz w rev quality + 📈acquisition/reinvestment opps) 1 seriously though, if you comment and then ping Loida [at tuckers farm] w your size and address and we’ll do our best.

love a good historical rollup - 1899, United Fruit ('The Fish that Ate The Whale', 2012) using ‘rollup’ loosely here. Today ‘rollup’ is a kind of a dirty word (understandable - 90’s graveyard + M&A empirically a high vol strategy), so now folks say: if pe > ‘buy-and-builds’ if growth/VC > ‘aggregations’ if search/eta > ‘programmatic acquisitions’ if public equities > ‘serial acquirers’ Investor-guys quibble re the differences but my take is all highly active M&A products. (kinda like VC’s saying “distribution” instead of “audience/influencer/creator”. Or anyone in finance saying “to the extent that” instead of just saying “if”. Maybe even "distributed" instead of "remote") but fast forward to the past decade, and probably the highest performing pe product of 2010s has been rollup – eg Alpine, Shore etc (mostly privately funded these days vs publicly funded in the 90’s. And still plenty of equity underwater / still high vol) (Separately, United Fruit is awesome example of early activism but for a different post.) -- Pls send Tucker's Farm Corporation any asset w $3m+ of EBIT!

my wife often reminds me that the only thing in this world that is less interesting than my deals, is my fantasy football roster. But the below auction results might be the best thing i've ever done (granted 8 team league and I had some awesome keeper contracts coming into this year’s draft (Bowers McLaurin Thomas)) Happy first football Sunday! (and pls send any $3m+ EBIT assets to Tucker's Farm Corporation, funkier the better!)

Star Gas (rollup), 2003. I think Brent Beshore awesomely describes the issues w centralization in his annual letter (at some point I’ll share Brent’s take and credit brent in small font at the bottom of my post). ‘shared services’, ‘centralization’, ‘synergies’ etc – all sound awesome in pe-guy-conference room but the empirical support nets decentralization (e.g. all the classic Thorndike case studies, franchising etc) (granted, there are powerful centralization counterexamples e.g. Lineage, elements of Danaher Corporation etc, and it 𝘤𝘢𝘯 be the right call) Great case study below from Dear Chairman (Gramm, 2015) - man rebrands in rollups are always so tempting...but this is my nightmare. Just reading this give me anxiety. -- Pleease send any businesses w $3m+ of EBIT our way!

i guess i just assumed that Matt and Alex or like Greg Flynn invented the sale leaseback but looks like uncle carl etc were old hats w the techmology (snip from King Ichan, 1982) (And per chatgpt, ancient rome had slbs?) Love creative RE financing but I do think the new generation of young eta wildcatters sometimes underappreciate the implicit costs/trade of a crappy slb (id est, pricey unsecured leverage - higher fixed cost structure / unlevered-cash-flow-volatility that isn’t worth the trade / knife-on-the-steering-wheel-esque) -- Pls reach out to Tucker's Farm Corporation if you're selling a $3m+ EBIT business! Especially in a rollupable category.

Not super interesting, but never noticed this little Teledyne (~180x net MOIC, >20% net IRR 1963-90) callout in Margin of Safety (Klarman/1991)