There is a particular episode where he turns around a chain of family restaurants.
I can't remember the numbers but various locations earnings were something like: +1 million, -1 million, +300k, +100k.
Now he bought it for some multiple of earnings (can't remember but assume it was between 4x and 10x) on the condition that they shut down failing locations.
Note that you don't have to do anything else but shut down the -1 million location and the whole business is much more profitable and valuable.
So I agree with the insights, but I would also pay attention at the outset to how good a deal is, and how small the risk actually is at the outset.
I saw that episode and if I remember correctly, there was basically a sentimental reason they didn't close that -1 million location. I think a lot of businesses suffer from similar decisions -- you value something that isn't reflected in the balance sheet.
Seeing that in someone else's business makes it so much easier to appreciate how foolish it is and to be more self-aware about those types of flaws in your own management decisions. The hardest one is probably people... managers often keep certain people around because they like the person, even though the person is terrible at their job.
I think this is kind of the point though. It just shows how many businesses (albeit with sampling bias for the show) can be turned around with simple "Management 101" techniques and processes. It doesn't quite seem like a fair criticism to say that he isn't taking enough risk for your liking.
I can't remember the numbers but various locations earnings were something like: +1 million, -1 million, +300k, +100k.
Now he bought it for some multiple of earnings (can't remember but assume it was between 4x and 10x) on the condition that they shut down failing locations.
Note that you don't have to do anything else but shut down the -1 million location and the whole business is much more profitable and valuable.
So I agree with the insights, but I would also pay attention at the outset to how good a deal is, and how small the risk actually is at the outset.