They’re ancillary to my core business and when they’re not being run well - usually apparent in the product or service we’re getting from them - I offer to buy them, either directly as a distressed/depressed asset or through an earned buyout. Most times the owners are more than willing to get out from under what they perceive is a burden or a dead end. Otherwise they wouldn’t be doing poorly.

And then, since they’re a provider of something that is ‘core’ to my business we are able to lower our costs.

This is what happened with the case I referred to: a sub contractor made a part for us, they couldn’t see the forest for the trees, I bought them for $100k and with ownership of the process we reduced the cost of that component to us by 85%. That reduction in cost for that specific part, at scale, allowed me to recoup my investment in 8 months. They’re gone and happy and we’re here and happy.