Outlier
Outlier is a Phoenix-based private company that buys, starts, and grows niche-leading businesses across various industries, focusing on operational efficiencies and stable financial characteristics.
Company Overview
Outlier is a private company based in Phoenix, Arizona, known for its strategy of using creativity and capital to acquire, start, and grow niche leaders across various industries. The company's approach emphasizes operational efficiency to optimize the bottom line of each business, rather than relying on heavy outside investment. With a team of over 12,000 employees, Outlier manages more than 1,000 locations worldwide and generates over $1B in revenue. The company remains flat and nimble despite its large scale.
Business Strategy
Outlier focuses on acquiring and growing businesses that are leaders in their respective niches. The company looks for opportunities in unique market segments with stable financial characteristics and defensible positions. Outlier targets mature businesses with high market share and stable revenues, preferring those with EBITDA margins of 20% or more. Investment strategies include leveraged buyouts (LBOs), management buyouts (MBOs), recapitalizations, and growth equity, while the company avoids early-stage venture rounds.
Industries and Investment Sectors
Outlier spans numerous industries, investing in sectors such as healthcare, real estate, entertainment, aerospace, business services, niche manufacturing, and outdoor markets. The company has deep expertise in acquiring and managing franchise organizations. Some of its notable investments include Passport Health, Realty Executives International, Pump It Up, BounceU, and Anmark. Additionally, Outlier has started its own businesses, including inDispense and Atlas Packs.
Operational Approach
Operational efficiency is a key focus for Outlier. The company aims to enhance the bottom line of each business it acquires through optimization strategies without heavy reliance on outside investments. With a flat organizational structure, Outlier maintains nimbleness, allowing for quick decision-making and effective management. This approach supports its goal of continuing to grow current market-leading businesses while finding more niche opportunities.
Community and Legacy
Outlier values supporting its partners who are committed to making a difference beyond the company's operations. The company also places a strong emphasis on preserving the legacy of the businesses it acquires, often involving the founders in the ongoing management process. This commitment reflects Outlier's dedication to maintaining the unique character and culture of each business while driving growth and efficiency.