Brent Beshore: The Biggest Lessons from the Messy Marketplace
Nov 28, 2024
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Brent Beshore, founder and CEO of Permanent Equity, dives into his transformative approach to private equity and highlights the importance of long-term ownership. He discusses the human aspects of buying and selling businesses, emphasizing empathy over just profits. With insights from his journey, he explores why business owners sell, the value of customer loyalty, and the emotional challenges post-sale. Brent also redefines success, advocating for a focus on personal growth and meaningful relationships rather than mere financial outcomes.
Brent Beshore emphasizes the importance of treating employees as individuals, which fosters loyalty and a healthier workplace culture.
The podcast discusses a long-term approach to private equity that values relationships and alignment of company cultures over quick financial returns.
Beshore highlights that many business owners sell due to personal reasons, valuing the future care of their businesses over immediate cash gains.
Deep dives
The Importance of Human-Centric Business Practices
Treating employees as individuals rather than mere 'human resources' fosters a healthier workplace culture. When businesses view their workforce as expendable tools, it leads to dehumanization and a toxic environment. On the other hand, when organizations prioritize empathy and true care for their employees, it encourages loyalty and a more productive atmosphere. Creating systems where everyone wins is vital for sustainable success, as unsustainable practices ultimately lead to downfall.
Navigating the Complexities of Investing
Investing is framed as not just a financial decision but a form of ownership of businesses. The conversation highlights a different perspective on private equity, focusing on long-term relationships and growth rather than quick returns. By employing an unconventional approach to buying businesses, such as inbound strategies, investors can create meaningful connections with potential sellers. This method emphasizes matching values and cultures between buyers and sellers, leading to healthier ongoing relationships post-transaction.
Understanding Seller Motivations
Many business owners sell not solely for financial gain but due to a variety of personal reasons and the emotional toll of running a business. Factors such as burnout, health concerns, or the desire for a more balanced life can drive the decision to sell. Sellers tend to be more fulfilled by knowing that their business will be cared for than by maximizing immediate cash value. This insight prompts investors to focus on sellers who truly care about the future of their companies.
The Dynamics of Post-Sale Relationships
Post-sale dynamics can often lead to conflicts and misunderstandings if not handled delicately. There is a tendency for sellers to experience remorse if the new owners achieve significant success or if the business faces challenges. Effective communication and mutual respect between buyers and sellers are essential to navigate these complexities. Addressing issues as they arise and fostering an environment of trust can greatly enhance the transition process.
Redefining Success in Business and Life
The concept of success shifts from external accomplishments and monetary value to a focus on personal fulfillment, relationships, and the impact on others. Viewing success through the lens of bringing healing and flourishing to all involved enhances satisfaction and purpose. Accepting that outcomes are not solely in one’s control can alleviate stress tied to performance. This perspective encourages a healthier mindset, enabling individuals to enjoy the journey and foster genuine connections with others.
My guest today is Brent Beshore, he is the founder and CEO of Permanent Equity, a private equity firm that uses 30-year funds to invest in and partner with companies that care what happens next.
He is the author of a wonderful book: The Messy Marketplace, Selling Your Business in a World of Imperfect Buyers.
Summary
In this conversation, Brent Beshore, founder and CEO of Permanent Equity, discusses his unique approach to private equity, emphasizing long-term ownership and the importance of understanding the businesses he acquires.
He shares insights from his upbringing, his journey into investing, and the reasons why business owners choose to sell.
Brent highlights the significance of customer loyalty and the characteristics of ideal businesses, while also addressing the challenges of running a small business.
In this conversation, Brent Beshore discusses the complexities of buying and selling businesses, emphasizing the human elements involved in transactions. He explores the chaos often present in small businesses, the reasons owners choose to sell, and the importance of treating people with care and respect.
Beshore also highlights the significance of long-term perspectives in business, the challenges faced post-sale, and how success is redefined through a focus on flourishing and healing rather than mere financial outcomes.
Podcast Program – Disclosure Statement
Blue Infinitas Capital, LLC is a registered investment adviser and the opinions expressed by the Firm’s employees and podcast guests on this show are their own and do not reflect the opinions of Blue Infinitas Capital, LLC. All statements and opinions expressed are based upon information considered reliable although it should not be relied upon as such. Any statements or opinions are subject to change without notice.
Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed.
Information expressed does not take into account your specific situation or objectives, and is not intended as recommendations appropriate for any individual. Listeners are encouraged to seek advice from a qualified tax, legal, or investment adviser to determine whether any information presented may be suitable for their specific situation. Past performance is not indicative of future performance.
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