Mark Osborne explains why acquiring suppliers or vendors you already know is easier than buying unfamiliar businesses. You skip much of the due diligence, and these companies often have strong cash flow and reliable margins. The main risk: if your supplier fails, your supply chain breaks.
The benefit of going vertical integration is that you already know one area, right? And so now you're already doing the due diligence on the suppliers, vendors, and you're starting to figure out, oh, this could be interesting. You know, this seems like a really good business to be in. It throws off a lot of cash. It's good EBITDA margins, very reliable. You need to figure out in the due diligence, are some of the suppliers going to go under? So there could be a supply issue. And so a lot of the work's already been done. So I think it's an easy way if there are other companies involved with, as you said, dentists, that's an area that you would probably look into.
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