Assertion certainty 4/5 debate potential 2/5

Perelman: Youngest business GSP has backed was 17 years old

Matt Perelman · Alex Sloane & Matt Perelman – Buy-and-Build Playbook in the Core Economy at GSP (EP.499) · Apr 27, 2026 · at 28:48

Matt Perelman, co-founder of Garnett Station Partners, outlines why the firm avoids newer brands and focuses strictly on businesses that have weathered multiple economic cycles.

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“The youngest business we've ever invested in at GSP is 17 years old. The oldest is 90 years old.”

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More from Matt Perelman

Disclosure
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…”
Matt Perelman Apr 27, 2026 ▶ 41:51 Alex Sloane & Matt Perelman – Buy-and-Build Playbook in the Core Economy at GSP (EP.499)
Disclosure
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…”
Matt Perelman Apr 27, 2026 ▶ 44:20 Alex Sloane & Matt Perelman – Buy-and-Build Playbook in the Core Economy at GSP (EP.499)
Insight
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.”
Matt Perelman Apr 27, 2026 ▶ 41:22 Alex Sloane & Matt Perelman – Buy-and-Build Playbook in the Core Economy at GSP (EP.499)
Disclosure
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.”
Matt Perelman Apr 27, 2026 ▶ 42:07 Alex Sloane & Matt Perelman – Buy-and-Build Playbook in the Core Economy at GSP (EP.499)
Disclosure
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.”
Matt Perelman Apr 27, 2026 ▶ 9:25 Alex Sloane & Matt Perelman – Buy-and-Build Playbook in the Core Economy at GSP (EP.499)
Insight
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…”
Matt Perelman Apr 27, 2026 ▶ 11:58 Alex Sloane & Matt Perelman – Buy-and-Build Playbook in the Core Economy at GSP (EP.499)
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