medium · Private Equity value-creation

Multiple arbitrage is often described as 'buying at wholesale and selling at retail'.

What does this analogy refer to?

  1. Buying public equities and simply reselling those same shares back into the public markets.
  2. Focusing an entire investment strategy exclusively on consumer-facing retail businesses.
  3. Purchasing raw inventory from a wholesale supplier and selling it directly to end consumers.
  4. Buying small, illiquid companies cheaply and selling a large, consolidated group for a premium.

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