being small as scary in a roll-up. And it's true because if you take any one of these consolidations

that were involved with and you pick one of the underlying assets, there are fundamental

micro-market risk to that asset. Perhaps they have one customer that makes up 20% of the revenue,

or if it's a business that's dependent on traffic patterns or whether you have the micro market

risks of traffic patterns or whether through scale and diversification of those revenue

streams, those numbers on a percentage basis and on a overall risk basis start to come down.

So that 25% customer in the scheme of large enterprise becomes 2%.

That weather event that could have

swung your revenue double digits in Q4 now can only swing it by 80 basis points because

it's blended into an overall consolidation. I'm Ted Sides and this is Capital Allocators.

My guests on today's show are Alex Sloan and Matt Perlman, co-founders of Garnett Station Partners,

a $4 billion private equity firm focused on buy-and-build investments in founder-led core economy businesses.

Alex and Matt are lifelong friends who took an unconventional path out of business school,

acquiring a 23-unit Burger King franchise in North Carolina that they scaled to 1,100 locations

before selling it back to the franchisor.

That operating experience became the foundation for their investment firm.

Our conversation traces that evolution from operators to investors.

We discussed their shared desk partnership and culture of debate

and the Garnett Station Playbook, from sourcing

lighthouse businesses and moving quickly in fragmented markets to building diversified

platforms through disciplined capital allocation. We also cover lessons from scaling through cycles,

the role of speed and integration in buy-and-build strategies and how they think about risk,

...