Richard Wilson: the work between an owner list and completed acquisitions
Richard recalled an origination project that started with 370 companies, reached 70 phone conversations and ended with three completed transactions.
The first list was not the investable list
The initial companies met broad criteria in a consumer product niche. The team contacted them, spoke with responding owners and examined valuation and the people behind the businesses. Richard said eight proved investable.
Several decisions narrowed the field
The recorded sequence distinguishes research, a conversation and a completed transaction. Richard put nine months around the phone-conversation stage. These counts describe his account of one project, without establishing a conversion rate another buyer should expect.
In Richard C. Wilson's words
"I got on the phone with 70 of them over nine months, found that eight of them were investable, and then closed on three transactions" (Richard C. Wilson, How to Start a Family Office mini-series)
How to use this
- Count the initial candidates separately from the conversations. Also record which businesses were judged investable.
- Include the time period when describing an origination example.
Questions and answers
How many companies were on the initial list?
Richard said 370 companies met the project's initial criteria.
How many transactions did he say closed?
Three, after 70 conversations and eight businesses judged investable.