medium · Private Equity value-creation
Multiple arbitrage is often described as 'buying at wholesale and selling at retail'.
What does this analogy refer to?
- Buying public equities and simply reselling those same shares back into the public markets.
- Focusing an entire investment strategy exclusively on consumer-facing retail businesses.
- Purchasing raw inventory from a wholesale supplier and selling it directly to end consumers.
- Buying small, illiquid companies cheaply and selling a large, consolidated group for a premium.
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