Brent Beshore - Private Equity for “Boring” Businesses
Jun 11, 2024
47:30
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Brent Beshore, Founder of Permanent Equity, discusses acquisitions without leverage or fees, business incentives, and efficiency. They talk about running a PE firm long-term, tech, data, and values in business.
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Quick takeaways
Permanent Equity focuses on long-term ownership of small businesses, avoiding the traditional quick turnover approach of private equity.
Strategic use of 100% equity in acquisitions allows Permanent Equity to prioritize stability and sustainable growth over short-term profits.
Integration of technology within portfolio companies enhances operational efficiency, reflecting the firm's forward-thinking approach to business.
Deep dives
Key Point 1: Permanent Equity's Approach
Permanent Equity, as discussed in the episode, focuses on buying cash-generating small and medium-sized businesses with the intent to hold them indefinitely, deviating from traditional private equity practices centered around quick turnover. Instead of heavily leveraging acquisitions, Permanent Equity opts for no debt transactions, emphasizes retaining existing leadership and uses 100% equity, yielding a more long-term, stable approach compared to traditional private equity models.
Key Point 2: Emphasis on Long-Term Business Ownership
Permanent Equity distinguishes itself by stressing long-term business ownership, denoting no immediate plans to sell acquired companies. By holding businesses with a focus on stability and sustainable growth, the firm avoids the short-term profit-driven strategies prevalent in traditional private equity, leading to more predictable cash flows and potential for higher returns over an extended period.
Key Point 3: Importance of Equity and Diverse Sectors
Unlike the typical practice of acquiring companies with high leverage, Permanent Equity relies on 100% equity in transactions. The firm's diverse ownership of businesses across multiple sectors such as aerospace, building, construction, and martech reflects a strategic approach to building a robust portfolio, leveraging the strengths of each sector while avoiding excessive risk associated with heavy debt.
Key Point 4: Application of Technology in Business Operations
Permanent Equity integrates technology strategically within its portfolio companies, aiming to enhance efficiency and customer satisfaction. While pursuing organic growth and exploring potential synergies among its diverse businesses, the firm looks for opportunities to techify processes, recognizing the impact of technology implementation in improving operational capabilities and adapting to market dynamics.
Key Point 5: Personal Insight and Transformation
The podcast delves into Brent Beshore's personal journey from a staunch atheist to embracing Christianity, attributing his profound transformation to a deep belief in the resurrection of Jesus. Brent's newfound faith aligns with his values and impacts his perspectives on leadership, business, and relationships, reflecting a paradigm shift that guides his approach to life and business ventures.
Brent Beshore is the founder and CEO of Permanent Equity, a unique private equity firm that buys cash-generating small and mid-sized businesses— with the intention to hold them indefinitely.
Permanent Equity owns over a dozen businesses in diverse sectors including aerospace, building and construction, and martech.
On this episode of World of DaaS, Auren and Brent discuss:
Secrets to good acquisitions
Running a PE firm with no leverage and no fees
Incentives and efficiency in business
Building in Flyover County
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