The Deal: How We Analyze and Vet a Potential Acquisition | With Richy Jarvis

What You'll Learn in This Episode

In this episode of The Epic Investor, Rich and Jason sit down with guest Richy Jarvis to break down the framework required to source, analyze, and vet potential business acquisitions. They discuss how a disciplined buy box, historical financials, customer concentration, leadership, and other qualitative and quantitative factors help narrow thousands of opportunities down to the deals worth pursuing. They also cover reservoir analysis, ongoing EBITDA monitoring, and downside sensitivity testing to determine whether an acquisition can withstand changing conditions, and still make financial sense. Richy Jarvis is an associate at Impact Equity Partners who works across the deal-sourcing and acquisition process. After beginning with contracting and data analytics work, he joined the team full time and now helps source opportunities, conduct preliminary due diligence, build financial models, and support acquisitions through closing and transition. Richy brings his experience of looking at and vetting more than 3,000 deals.

Episode Highlights & Timestamps

• (03:03)How a disciplined buy box can narrow thousands of potential businesses into a much smaller group of acquisition opportunities worth pursuing.
• (07:00)How skills developed in one field can transfer into acquisitions and unexpected value.
• (12:21)How EBITDA, historical financials, and a weighted three-year average provide the foundation for preliminary underwriting and valuation.
• (14:28)The qualitative and quantitative factors to examine in a potential acquisition.
• (19:34)How reservoir analysis stress tests potential acquisitions.
• (25:51)Why tracking weekly net income during due diligence protects buyers.
• (28:51)How sensitivity analysis tests different growth assumptions.
• (33:51)Why investors should evaluate both the upside and downside of an acquisition.

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