Built to Sell Radio Ep 495 Inside the Mind of an Acquirer: Brent Beshore on the Private Equity Trap and Being Long-Term Greedy
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May 23, 2025 Brent Beshore, founder of Permanent Equity, discusses the pitfalls of private equity and the importance of long-term ownership. He warns about the common practice of financial engineering that can lead to culture erosion in acquired companies. Beshore contrasts aggressive private equity strategies with sustainable, family-owned businesses, highlighting a people-centric approach. He shares insights on navigating the home services sector, effective marketing, and the significance of transparency in business transactions.
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Brent's First Acquisition Story
- Brent Beshore bought his first business in 2010 with no financial background or knowledge of private equity.
- He had to scramble last minute to learn due diligence and keep the business afloat with a loan from the seller.
Permanent Equity vs Traditional PE
- Traditional private equity focuses on buying, levering, stripping costs, and flipping businesses quickly.
- Permanent Equity takes the opposite approach: no leverage, long-term holding, and preserving company culture.
Align Investor Incentives
- Permanent Equity only gets paid a percentage of free cash flow returned to investors, creating alignment of interests.
- They avoid fees and only earn cash when distributions are made to ensure sustainable business growth.
