The Startup Ideas Podcast Generating Wealth by Doing Micro Private Equity with Brent Beshore
Jan 26, 2023
Brent Beshore, founder of Permanent Equity, shares insights on generating wealth without a finance degree. He discusses the importance of annual letters for transparency and business recalibration. Brent emphasizes navigating economic challenges by acquiring majority stakes in family-run businesses, enhancing them strategically. The conversation delves into business valuation, especially in micro private equity, touching on cash flow dynamics and realistic projections. Lastly, he advises on making informed decisions about when founders should sell their businesses.
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Annual Letters
- Write annual letters to inform stakeholders, including employees, investors, and potential partners.
- Use these letters to showcase your company's identity and attract the right people.
Permanent Equity's Growth and Strategy
- Permanent Equity's portfolio has grown significantly, with $350 million in annual revenue and 700 employees.
- Despite a weak economy, they maintain operating flexibility by avoiding debt, enabling investment during downturns.
Permanent Equity's Acquisition Strategy
- Permanent Equity acquires majority stakes in small, family-run businesses with $15-150 million in revenue.
- Unlike traditional private equity, they hold indefinitely, use no debt, and retain leadership teams.
