Buffett's One-Page Agreements

Andrew Wilkinson adapted Warren Buffett's acquisition approach to buying smaller companies, focusing on simplicity and trust in deal-making.

Core Philosophy

• Inspired by Warren Buffett's one-page term sheet approach
• If Buffett can buy billion-dollar companies with simple agreements, smaller deals should be even simpler
• Focuses on mutual understanding and trust over complex legal documentation

Key Elements of the Approach

• Uses 1-2 page term sheets instead of lengthy legal documents
• Emphasizes clear, straightforward terms
• Builds deals on trust and mutual understanding
• Avoids complicated lawyer processes when possible
• Aims to make quick decisions based on fundamental understanding

Benefits

• Speeds up acquisition process
• Reduces legal costs
• Creates better relationships with sellers
• Makes deals more accessible and understandable
• Builds reputation for straightforward dealing

Results

• Successfully acquired multiple companies using this approach
• Built Tiny into a ~$1B company
• Maintained high ownership percentage (71% of shares)
• Created efficient process for evaluating and closing deals
• Established trust-based relationships with acquired companies

Strategy Application

• Works best for smaller, straightforward acquisitions
• Requires good judgment of character and business fundamentals
• Relies on building long-term relationships
• Focuses on permanent ownership rather than quick flips
• Emphasizes operational understanding over legal complexity

This approach helped Andrew build Tiny into a significant holding company while maintaining strong relationships with acquired companies and their founders.