HoldCo Builders

Steve Lawrence, founder of Uncomplicated Group and expert in injection molding, shares his journey from corporate life to acquiring five businesses. He reveals the harsh realities of his first failed deal, emphasizing the emotional and financial toll. The conversation dives into essential lessons on seller readiness, the importance of a strong 'why' in acquisitions, and how operational systems like EOS transformed his factories. Steve candidly discusses the challenges and surprises of small business ownership while offering practical advice for aspiring acquirers.

The classic private equity playbook is dead as rising rates and pricier debt make old strategies obsolete. A new mindset prioritizing operational capabilities over mere financial engineering is emerging. Specialization is key, as it builds credibility with founders and enhances sector focus. Founders are urged to ask crucial questions to vet potential buyers. Opportunities in the lower middle market abound, driven by speed, niche expertise, and effective execution. It's a transformative era for those eager to adapt.

In this engaging discussion, John Seiffer, a seasoned operator and consultant with decades of experience across various industries, shares insights on scaling businesses effectively. He emphasizes the importance of understanding key metrics like CAC and LTV for sustainable growth. John debunks the myth of blind reinvestment, advocating for output-focused management instead. He provides practical advice on delegation and structuring a company to avoid operational chaos while retaining ownership benefits. Plus, don't miss his one-week playbook for assessing business systems!

The podcast dives into the exodus of private equity talent seeking ownership opportunities. It discusses how diluted carry and operational roles are deterring professionals from traditional paths. Many are frustrated with the lack of a clear route to wealth within large firms. Instead, smaller funds offer immediate equity participation and significant influence. Various entrepreneurial models like search funds and self-funded deals are on the rise, promoting a shift that rewards builders and democratizes ownership in the industry.

Uncover the liberating insight that success isn't about following a set path—it's about creating your own. Explore why talent is common but intentionality sets winners apart. Hear the cautionary tale of the perfect resume that led to disappointment and learn about a pathless entrepreneur who built a $200M company on her own terms. Discover practical steps to forge your unique career path and why paths only make sense in retrospect. Embrace uncertainty and enjoy your work for lasting success!

David Dowda, Founder and CEO of Dowda Holdings, jumped from a grueling insurance career to purchasing a $30k beach business using seller financing. He talks about rolling up various small businesses into his portfolio, including a surf shop turnaround into a coffee hotspot. With no construction experience, he successfully flipped a remote company for a 300% return. David emphasizes the importance of team-building, financial oversight, and nurturing trust while scaling businesses, advocating for sustainable growth over quick profits.

Discover the secrets behind generating 20-40% annual returns through strategic acquisitions of small, niche companies. Learn how bottom-up diversification outperforms larger deals, and why owning multiple firms enhances resilience. Delve into the 7-7-7 structure for managing numerous subsidiaries and explore the importance of maintaining culture over forced synergies. With real-world examples of impressive returns, this discussion offers practical tips for private buyers looking to thrive in the acquisition landscape.

Cyrus Hessabi, an investor-operator with a rich background in aerospace engineering and venture capital, shares insights on transitioning from VC to private equity at Shore Capital Partners. He discusses how AI is revolutionizing traditional service industries, revealing that ripe opportunities exist in sectors like property management and accounting. Cyrus defines AI-enabled services as transformational tools rather than replacements and emphasizes the importance of evaluating founder capabilities. His journey illustrates the blend of optimism and discipline essential for success in this evolving landscape.

Explore groundbreaking insights from recent Yale data on investor outcomes. Discover why access is the key factor in achieving exceptional returns, rather than mere modeling. Mikk highlights the stark discrepancy between optimistic projections and real-world investor results. The discussion uncovers the rarity of high returns, with only a small fraction of deals driving profits. Understand how elite investors navigate the landscape and why the common strategy of 'spray and pray' often falls short. Get ready to rethink your approach to investment success!

Sequoia Borgman, Founder and CEO of Borgman Capital, has had an impressive career in private equity, focusing on founder-led businesses. He shares insights on sourcing off-market deals in second-tier cities and the challenges of managing founder transitions. Sequoia also discusses the advantages of raising capital from retail investors instead of institutions, emphasizing the value they bring beyond just money. Additionally, he highlights the current landscape of private equity, navigating fewer deals and the importance of a strong team in this sector.