My First Million #61 - How to Buy, Manage and Grow Cash-Flow Positive Businesses + Corona Virus Impact on the Economy
14 snips
Apr 1, 2020 Brent Beshore, founder of Permanent Equity, specializes in acquiring cash-flow positive businesses. He discusses his plans to invest $250 million in resilient, non-tech companies amid economic uncertainty. Brent reveals insights on handling owners post-acquisition and shares financial metrics like owner earnings that influence his decisions. He emphasizes sustainable growth over quick returns and reflects on the ongoing impact of the pandemic, highlighting potential new opportunities for strategic investors.
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Accidental Acquisition
- Brent Beshore accidentally bought his first business after a misunderstanding.
- A mutual acquaintance suggested he meet an owner who had been "left at the altar twice," leading Beshore to pursue an acquisition.
Wealth Through Long-Term Ownership
- Families build wealth through long-term business ownership, reinvesting cash flows.
- Private equity's short-term focus, high debt, and rapid growth strategies create fragility.
Acquisition Criteria
- Prioritize durable businesses with strong leadership teams and protected market positions.
- Look for companies "too big to be small and too small to be big."
