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Takeaways from our conversation with Justin Ishbia. 1) The system is the star. Every phase of the deal cycle has a playbook. Some involve hundreds of steps. Everyone is responsible for using and continuously improving them. 2) Good process unlocks speed and scale. Shore has done ~600 acquisitions. Average enterprise value of transactions is $12 million. 3) Every industry has a Mt. Rushmore. The people that everyone looks up to, quotes in meetings, and seeks advice from. 4) True expertise takes time. “It takes a really smart person about 18 months to learn 90% of the industry. That last 10% takes 5 years." 5) Stack the boards. Shore appoints ~7 independent board members to every company they buy (Mt. Rushmore industry veterans). They get options–no cash. That makes them hungry. And they recruit like crazy. Most importantly, they enjoy it. 6) Early career energy. Hire it. Embrace it. 7) “People don’t quit their friends.” Not a single person above associate level at Shore Capital has ever left the company. Pay a little above market and invest a ton in culture. 8) Clarity in Systems = Expectations = Trust. Shore is known for replacing founders with new CEOs. It’s never a problem because everyone’s up front about it. 9) New leaders build trust by starting with more questions than answers. When Justin became the manager of the Phoenix Suns, he had 1:1’s with every employee, held a town hall Q&A, and sent out a survey that asked "tell me the 2 things we should keep doing & the 2 things we should stop doing." (270+ of 300 employees responded). He read every single response and acted fast. https://lnkd.in/ehdeYxp6

Lessons from Acquiring 586 Companies

Lessons from Acquiring 586 Companies

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