Neel Bhargava outlines a key aspect of the firm's investment strategy: our focus on Multi-Location Services.
At NB Group Investors, we invest in Multi-Location Services. But what exactly is "Multi-Location Services" and why are we passionate about it? Multi-Location Services is a business model rather than an industry (the more typical way for investors to focus). It encompasses companies that deliver services to consumers or businesses and scale by expanding to new locations across different geographies. We invest in this business model across various categories and industries. <<Why We're Bullish on Multi-Location Services>> 1️⃣ Inherent Scalability - Once a value proposition and operating model proves successful, it can be replicated in new markets. The US market is massive and offers lots of opportunity. 2️⃣ Strong Profitability - 20%+ EBITDA margins are common in these businesses, with some reaching 30%. 3️⃣ E-Commerce Resistance - Multi-location Services businesses are naturally insulated from Amazon and e-commerce disruption. You can't get your hair removed or send your child to preschool through a website. 4️⃣ Analytical Clarity - These businesses share common key performance metrics (e.g., payback period, four-wall margins) making them highly analyzable and benchmarkable for specialists in the space. We're actively seeking new investments in Multi-Location Services, particularly in: 🏫 Youth enrichment and education 💪 Fitness and recovery 🏥 Hospice care ⚱️ Funeral homes 🪙 CPA and bookkeeping firms 🏡 Residential services (landscaping, roofing, etc.) 📈 Other concepts w/ strong store-level economics, profitability, and growth Something come to mind? I'd love to connect!