Welcome to our new direction. After years of analyzing public companies like everyone else, we're shifting our focus to something far more interesting and profitable.
Here's what we've learned: 73% of acquisitions fail to create value. Not because of financial metrics or market conditions, but because of psychology. Human biases, emotional attachment, and flawed decision-making destroy deals before they even close.
We're done writing about Apple's latest earnings or dissecting Warren Buffett's portfolio moves. Instead, we're hunting for mispriced service companies where behavioral biases create real opportunities.
The service company advantage
Service businesses fascinate us for three simple reasons.
First, they generate predictable cash flows. Unlike tech companies burning through VC money or manufacturers dealing with commodity cycles, quality service companies produce steady, recurring revenue. A medical practice, accounting firm, or B2B software company doesn't disappear overnight.
Second, service company owners consistently undervalue their businesses. They see "just people" rather than profitable systems. They anchor on outdated multiples. They can't separate their personal identity from business value. This creates opportunities for founders who think differently.
Third, integration happens faster. Service companies scale through people and processes, not factories or inventory. With the right behavioral approach, you can improve operations quickly without massive capital expenditure.
Why behavioral finance matters in M&A
Most due diligence focuses on numbers. Revenue growth, profit margins, debt levels. But the real value creation or destruction happens in the gray matter.
Consider this: we analyzed a SaaS company where the founder insisted their churn rate was "industry standard" at 15% monthly. They anchored on this number for two years, missing obvious retention opportunities. A behavioral audit revealed customer success processes that could cut churn to under 5%.
The founder couldn't see it. Too attached to their original assumptions.
This is where our PhD research in behavioral finance becomes practical. We don't just look at what businesses do. We examine why founders make certain decisions and where cognitive biases create blind spots.
Our approach: academic rigor meets entrepreneurial reality
We're not traditional investors. We don't have a fund to deploy or LPs to satisfy. Instead, we use our own generated cash flow to acquire businesses we can improve through hands-on management and behavioral insights.
This gives us several advantages. We operate with patient capital since there's no quarterly reporting pressure. We can focus on long-term value creation. As operators, not just investors, we spot operational improvements others miss. Our academic training helps us recognize our own biases while identifying them in target companies.
We're building a portfolio one quality acquisition at a time. Our software company? Acquired based on behavioral analysis of why the founder was systematically underpricing their recurring revenue model.
What you'll find here
Going forward, expect two types of content.
We'll share behavioral insights made practical. How psychological biases affect business valuation, why founder-led companies trade at discounts, and frameworks for behavioral due diligence.
We'll also provide real company analysis. Deep dives on acquisition-worthy businesses through our behavioral lens. Not recommendations but case studies showing our thinking process.
We'll cover service companies primarily: health services, business services, fintech operations. But we're opportunistic. Any business where behavioral factors create mispricing gets our attention.
Why this matters now
The M&A market is changing. Interest rates, recession fears, and tighter capital markets are creating opportunities for entrepreneurial acquirers who understand psychology.
While private equity pays 12x EBITDA for "platform investments," we're finding quality service businesses at 3-4x multiples. The difference? We look where behavioral biases create undervaluation.
We apply academic-level analysis to smaller deals others overlook. We identify businesses where founder psychology creates both risk and opportunity. We execute with the patience that comes from using our own money.
This is M&A for founders who understand that numbers tell only half the story. The other half happens between the ears.
Join the conversation
We're documenting this journey in real time. The wins, the misses, and everything we learn about applying behavioral finance to real-world acquisitions.
Subscribe to follow along as we build our portfolio one informed decision at a time. Because in an acquisition game where most players fail, understanding psychology isn't just an edge. It's essential.
Ready to see how behavioral finance changes everything about M&A? Hit subscribe and let's explore the intersection of academic insight and entrepreneurial execution.