Matt Perelman
Co-Founder and Managing Partner, Garnett Station Partners. On 1 show, 1 appearance. The Shows tab opens the full record on each.
investorfounderexecutiveoperatorgarnettstation.com ↗
Matt Perelman co-founded Garnett Station Partners in 2013, an investment firm managing over $4 billion in assets focused on buy-and-build strategies. Previously, he built Cambridge Franchise Holdings into a major multi-unit platform that merged with Carrols Restaurant Group, following earlier career stops at L Catterton and Citigroup.
1shows
1appearances
20statements
2resolved
2supported
0contradicted
100%fully supported
Everything Matt Perelman said on any show that made the record, most notable first. Each card names its show and opens the statement there.
Perelman: GSP only rolls up sectors that were previously consolidated
“Alex touched on it earlier, we're only doing roll-ups in categories and asset classes and businesses that have been consolidated before. The benefit to that is there is off the shelf Tech solutions that have been created to manage these businesses in a multi-u…”
Perelman: GSP avoids roll-up categories with bolt-on multiples above 8x cash flow
“We are actively avoiding categories where the bolt-ons are trading outside of our price range. There are categories today that people are having success rolling up, whether they be Resi HVAC or pest control, or in a prior cycle, perhaps VET, where the platform…”
Perelman: Rollups fail primarily due to leverage and poor integration
“Well, if you think about what blows up roll-ups over time, at least in our experience, it's two things. It's leverage and lack of integration.”
Perelman: Garnett Station has only lost money on a single deal
“So you don't run into the problem, which happened to us in our second deal, the only deal we've ever lost money on, where we had dis-synergies.”
Perelman: GSP Co-Founders Share Single Desk, Speakerphone, and All Meetings
“We share a desk. We have one big Polycom speakerphone between us. Take all of our meetings together, all of our calls together, and all of our travels together.”
Perelman: Investment Discussions with Universal Consensus Are the Most Dangerous
“That's a huge part of our process is you can get into a room, everyone nods their heads and says, yes, this is a great idea. Are we going to make three times or five times? Who knows, but it's going to be great. Let's think again there because some of those so…”
Perelman: Deborah Derby grew portfolio earnings from $60M to $150M before exit
“Fortunately, we were able to bring in a new CEO, Deborah Derby, who's now the CEO of one of our businesses. She took earnings in that business from a trough of sixty million a year at year-end, twenty-twenty-two, to when we sold the business a year and a half …”
Perelman: Youngest business GSP has backed was 17 years old
“The youngest business we've ever invested in at GSP is 17 years old. The oldest is 90 years old.”
Perelman: Multi-unit investments must hit 20% store margins and 3-year payback
“If you take multi-unit businesses, of which restaurants would certainly be one of them, they qualify for investment from us. Business has to have at least 20% store level margins. Business has to have new units that pay back in three years or less and has to h…”
Perelman: Authentic Restaurant Brands Grew From $20M Equity to Multi-Billion Valuation
“If you look at our largest investment to date, it's a consolidation called Authentic Restaurant Brands that we started four years ago with a twenty million dollar equity check. Today, it's a several billion dollar company across a number of different brands wi…”
Perelman: Garnett Station rarely uses upfront leverage in consolidations
“The way that we counteract the speed point with safety of principle and downside protection is we rarely use leverage up front in these consolidations.”
Perelman: Tech tools boost portfolio organic growth by 200-300 bps
“We have found that through partnerships with our operating partners and management teams and founders with tech implementation, whether it's estimating software or labor management tools or site selection, we're able to increase that organic growth rate typica…”
Perelman: Debt markets are far friendlier to $15M-$20M EBITDA consolidations
“Size and scale, we have found that the credit markets are far deeper Cheaper, more flexible, less covenant-laden, and friendlier to consolidations that are, let's call it, 15 to twenty million of EBITDA in size and scope versus something that's five. What does…”
Perelman: GSP grants 1:1 bonus options matching employee co-investment checks
“If they are willing to write a new check into our deal, side by side with our security, we will give them additional one-to-one options on that dollar.”
Perelman: Super option dilution above 3x to 4x outcomes is worth the cost
“Our view is the incremental dilution above a three or four X is more than worth it for the incremental incentive for these people to be max be aligned with us”
Perelman: An HBS Email Address Is a Powerful Tool to Reach CEOs
“An HBS email address is a really powerful weapon. We would email CEOs of huge companies that we were trying to learn from, and they would all reply because of the email address.”
Perelman: GSP's Burger King Reverse Merger Plunged to $0.98 During COVID
“When we took the business public, it was May of 19, and we reverse merged our 220 unit Burger King and Popeyes business into a larger Burger King business and became the largest shareholders of that company. The day we did the deal, we merged in at 8:35 a shar…”
Perelman: Garnett Station Partners manages $4 billion in AUM
“The examples today are similar to the examples back then, perhaps on a larger scale with four billion of AUM today versus 23 Burger Kings”
Perelman: Garnett Station rolls equity into most business exits
“Most of the exits we've had, we've rolled equity into the deal.”
One line per show, most statements first. The link opens Matt's full record on that show: the calibration, argument clarity, speaking style and every statement made there.
| Show | Role there | Eps | Statements | Record | |
|---|---|---|---|---|---|
 CAPITAL ALLOCATORSLEDGER | Co-Founder and Managing Partner, Garnett Station Partners | 1 | 20 | 100% 2/2 | full record on Capital Allocators → |