HoldCo Builders

Organic growth is great, but if you want to grow through M&A while beating almost every private equity firm in deal competition. Learn from Jesse.He became so good at it that he built the company to $200mm- 8 acquisitions and counting- 100% bootstrapped- Being 35 years old; hungrier than everA couple of notes:1. I am a forced entrepreneur, I dropped out of school and then I couldn't find a job so I was forced to start my first company Job Mobz2. Entrepreneurs give up too quickly; had I sold too early I would never have built a $200M company3. Recruiting companies must transform into SaaS companies or they will be replaced4. We've helped build teams for Coinbase, 23andME, Stellar, and Scale AI when they were very small companies5. The way you get big WHALE-like clients: figure out what their problem is. Then do an insane amount of research and sort it out for them. No one does this and you can stand out very easily6. Being in one industry for 10+ years gives you insane “market knowledge” that allows you to acquire companies many times cheaper than newer competitors and private equity firms that “know” less about the industry.7. Having a huge pipeline just because of a great reputation in space – the niche focus has been incredibly beneficial8. You can make your business 2x as valuable by reviewing your contracts and making sure you're pricing correctly9. You can't just work 40 hours a week and win.I hope you enjoy listening as much as I enjoyed talking to Jesse Tinsley from Recruiter.comShow notes:00:00:00 - Intro00:00:29 - Being a firefighter and the early days of starting a business00:04:31 - Being a part-time entrepreneur for the first 4 years00:05:58 - Moving away from the traditional recruiting business model to recurring annual contracts00:09:34 - How he managed to get Coinbase, 23andMe, Scale AI as clients00:13:37 - Being frugal allowed to acquire 8 companies00:17:00 - Having the “market knowledge” allows you to acquire companies many times cheaper than your competitors simply because they know less00:19:00 - Deal structure00:23:20 - Turning 3x multiples to 30x EBITDA multiplies00:31:00 - Post-acquisition00:35:39 - How to make your company 2x more valuable: review and fix your pricing contracts00:43:19 - The benefits of focusing on one specific industry00:48:32 - The cyclical market provides an additional opportunity00:51:53 - Focusing on recruiting and recruiting only00:54:48 - Continuing to build a business instead of saying yes to a life-changing amount of cash00:59:27 - Is Jesse easy or hard to work with01:01:47 - How to run a $200 million company? Schedule wiseFollow Mikk/PrivatEquityGuy on Twitter: ⁠⁠⁠https://x.com/PrivatEquityGuy⁠⁠⁠Jesse on Twitter: ⁠⁠⁠https://x.com/JesseTinsleyThis podcast is for informational purposes only and should not be relied upon as a basis for investment decisions.

Imagine that for a moment…You are 24 years old and want to acquire a business…You pick up the phone and make your first cold call to the founder who owns two companies in the $1-2mm EBITDA rangeThe founder says, "yes, I would be interested in selling my company," four months later you are the new owner of a small holding company with two traditional businesses (First Fleet Maintenance and Northern Diesel, both located in Northern Alberta, Canada) and a combined EBITDA of $4 million.This conversation is amazing. Ethan Macdonald from Macdonald Financial has a wild journey.Show notes:00:00:00 - Intro00:00:43 - Background before these acquisitions00:06:29 - The moment Ethan decided it was the right time to acquire the company00:08:35 - Talking to brokers lead to not wanting to use their services00:11:50 - Deal structure and conversations with the banks00:19:41 - Very asset heavy businesses00:23:30 - The whole transaction was financed by the bank00:32:34 - Unexpected costs in making the deal as he couldn't afford both a lawyer and an accountant00:34:07 - Post-acquisition00:38:26 - "I would like to be an operator for the next transaction"00:41:00 - Growth through M&A versus organic00:44:02 - Challenges so far after less than half a year of business ownershipFollow Mikk/PrivatEquityGuy on Twitter: ⁠⁠⁠https://x.com/PrivatEquityGuy⁠⁠⁠Contact Ethan: ethan at macdonaldfinancial dot netThis podcast is for informational purposes only and should not be relied upon as a basis for investment decisions.

"There is an ultimate way to build a group of software companies without having to follow the typical VC growth playbook."Philippe Willi is building a SaaS holding company TrekkSoft in Switzerland.He buys SaaS companies all day but never sells them.Philippe's story is different:He started a VC-backed SaaS, but wasn't able to grow it fast enough…Then he pitched investors not to grow that one SaaS, but to acquire other SaaS companies instead.The investors said it was a VERY stupid idea, but decided to do it anyway…Today they have a team of 170+ employees and 6 portfolio companies.The great story of TrekkSoft.Important note: Philippe is a big fan of Mark Leonard, the founder of Constellation Software. They have met twice. Mark even visited Philippe and his family at their home in Switzerland.Lots of great stories and lessons in this episode.Enjoy!Show notes:00:00:00 - Intro00:00:28 - Early days and life before Trekksoft00:05:19 - First and second acquisition00:09:54 - Investors: “Building a portfolio of software companies is a VERY stupid idea…”00:15:34 - Diversified portfolio vs the circle of competence00:21:22 - How do investors get their capital - IPO? A secondary transaction? Private equity?00:23:05 - One business unit can save the whole group in difficult times00:24:39 - Synergies around the portfolio and Philippe's beliefs about it00:26:13 - First few steps post-acquisition while being an operational type founder00:30:37 - The story and lessons learned from meeting (twice!) with Mark Leonard, founder of the $50B software behemoth00:39:30 - Growing organically or through M&A00:44:18 - Rule of 4000:49:46 - Key-man-risk across the entire portfolioFollow Mikk/PrivatEquityGuy on Twitter: ⁠⁠⁠⁠https://x.com/PrivatEquityGuy⁠⁠⁠⁠Philippe on Twitter: ⁠⁠⁠⁠https://x.com/philippewilliThis podcast is for informational purposes only and should not be relied upon as a basis for investment decisions.

Jeremy has bought and sold over 100 businesses, but never uses a broker. Treat a company like a product. You buy one and then you sell it Again, never use brokers! Buy right and you’re gonna win Do more of what works Joint ventures and the beauty of itGreat story with Jeremy building a holding company in Dubai while the team is based in Singapore.Important note: he does all that while traveling twice a month with the family.Enjoy!Show notes:00:00:00 - Intro00:02:29 - First acquisition00:09:51 - Competition on $2-5m deals vs $10m deals00:12:31 - Early days and growth from 25 employees to 135 employees00:17:31 - Having a big income vs. selling the business and putting the profits into a new business00:26:19 - Never use brokers: how to find the best companies and build a pipeline of 100 companies00:35:37 - Characteristics of companies they acquire today00:40:10 - Buy-and-sell vs building a huge holding company00:42:55 - Post acquisition: "I delegate everything, I never show up, and they don't even know me"00:45:22 - Portfolio company as of today00:50:28 - Still terrible at fundraising00:53:09 - Why not raise $200 million and go big00:55:03 - Doing more of what works00:56:32 - Joint ventures and the beauty of itFollow Mikk/PrivatEquityGuy on Twitter: ⁠⁠⁠https://x.com/PrivatEquityGuy⁠⁠⁠Jeremy on Twitter: ⁠⁠⁠https://x.com/JeremyJHarbourThis podcast is for informational purposes only and should not be relied upon as a basis for investment decisions.

Discover how a Swedish holding company achieved remarkable growth by acquiring 26 asset-light businesses in just six years. The CEO shares his journey from frustration to success, implementing a sector-agnostic strategy that emphasizes rigorous selection and management evaluation. Learn about their unique cash pooling system, decentralized decision-making, and the challenges they faced in maintaining profit margins. With insights inspired by legendary investors, this story highlights the potential of strategic acquisitions in a competitive market.

Dream for 1,000s of software investors: Build a portfolio of profitable B2B SaaS companiesThe northstar being Constellation Software (which trades at a P/E ratio of 104 and has a market cap of $90B)Reality: It’s hard, extremely hard!Despite this, there are few people who actually go and try to do that…Take Colin Keeley, co-founder of Verne, where they buy and build mission-critical B2B SaaS businesses.“You can have a holdco plan, but do one great deal and then earn the right to do more deals.”I hope you enjoy this short conversation.Show notes:00:00:00 - Intro00:00:11 - First acquisition and early days of Verne00:02:47 - Choosing the right partner to build your SaaS portfolio00:03:45 - Returns of first acquisitions00:07:40 - Current portfolio of companies00:11:46 - Characteristics of perfect acquisition for Verne00:15:23 - The harsh reality of delegation00:21:51 - Capital Camp and lessons from Brent Beshore and Patrick O'shaughnessyFollow Mikk/PrivatEquityGuy on Twitter: ⁠⁠⁠⁠https://x.com/PrivatEquityGuy⁠⁠⁠⁠Colin on Twitter: https://x.com/ColinKeeleyThis podcast is for informational purposes only and should not be relied upon as a basis for investment decisions.

Imagine this... First acquisition March 2023 Today a portfolio of 10 companies $7.5M in EBITDA Average acquisition multiple so far 2.5x (!!!) Last deal: $550k EBITDA business acquired for $850kCraziest part, doing all that with ZERO personal investment and still making 50% of the carryShow me a better salesman!When asked how you did it?“There are no rules. Literally.”This conversation with Nigell Lee of RBO Group has everything. I hope you enjoy listening to it as much as we enjoyed recording it.Show notes:00:00:00 - Intro00:00:53 - An unconventional path lead to entrepreneurship & building a company in NYC00:07:27 - Mixed emotions and growth while growing business in the US00:09:51 - First days of RBO Group: 9 months of market research and search of the first deal00:12:34 - Financial structure and financing of the first deal00:19:32 - Acquiring a company in an industry you don’t know much about00:20:35 - The biggest secret revealed: How to find the absolute best deals00:25:44 - Getting in the game vs spending years looking for a perfect deal00:28:57 - Size and structure of the holding company00:36:39 - 2-5-10 year strategy post acquisition00:42:40 - 10 deals with 2.5x average acquisition multiple00:46:19 - 90-day integration post acquisition00:57:55 - Focusing on one business/platform vs wide range of companiesFollow Mikk/PrivatEquityGuy on Twitter: ⁠⁠⁠https://x.com/PrivatEquityGuy⁠⁠⁠Nigell on Twitter: ⁠⁠⁠https://x.com/nigelllee1This podcast is for informational purposes only and should not be relied upon as a basis for investment decisions.

Imagine this…You help grow the home care and hospice company from $20 million to $150 million and then they fire you.Then you think whether you should start your own thing or not, “I always knew I wanted to be an entrepreneur but I wasn’t ready for it…”Voila…You still decide to do it…Today, at 38, Nikolas runs a diversified portfolio of 5 companies. ("A small portfolio of a few companies,”, as he put it.) What a humble man.Fantastic and very open conversation with Nikolas Hulewsky from the holding company called CoFounders.Show notes:00:00:00 - Intro00:02:36 - Lessons learned from growing a home care business to $150 million00:09:51 - Getting fired and starting your own business00:11:58 - Starting a brand new company and making $10 million in revenue in 3 months00:19:55 - 4 criteria before buying a company00:24:50 - Preparing for interest rate changes and what if they don't change00:27:41 - All deals they’ve done are off-market, never using brokers00:36:21 - “You do it because you want to have fun,” but what about financial goals?00:40:30 - Building a business with your best friend00:45:13 - Time management 101: 4 kids, a wife, and a goal of $100m in revenueFollow Mikk/PrivatEquityGuy on Twitter: ⁠⁠⁠https://x.com/PrivatEquityGuy⁠⁠⁠Nikolas on Twitter: ⁠⁠⁠https://x.com/CoFoundersNikThis podcast is for informational purposes only and should not be relied upon as a basis for investment decisions.

Even when every 3rd and 4th person in finance dreams of starting their own private equity fund…Only 0.01% give it a chance and far fewer succeed…Here is my conversation with John Caple of Hidden Harbor Capital Partners who just went and did all that...$260m fund I$465m fund II$800m fund III (just announced fundraising)They invest in lower middle market industrial and business services companies, paying 4-8x EBITDA per deal, making them a true value shop.“I don’t want to pay 5 times for 5 times business. I want to pay 5 times for a business that one day can trade for 8, 10, 12 times. Well, that’s what everyone wants to do… But how we do it is by buying founder and family owned businesses. We never buy from another private equity firm.”We had a blast. Enjoy!Show Notes:00:00:00 - Intro00:00:37 - We just raised $800m, but the real work is just beginning00:01:42 - Early days as an investment banker and consultant00:05:12 - Doing it with his best friends and raising the first 260m fund00:12:39 - Straightforward fundraising advice00:17:45 - Why we're starting to see many private equity funds disappear00:23:40 - Sourcing, selecting, servicing00:25:45 - Investment preferences00:32:00 - Lessons learned after one portfolio company ended in zero00:38:21 - Processes they can't live without00:44:02 - Advice for founders considering selling their business00:52:39 - Is this life what you expected it to be?Follow Mikk/PrivatEquityGuy on Twitter: ⁠⁠⁠https://x.com/PrivatEquityGuy⁠⁠⁠John on Twitter: ⁠⁠⁠https://x.com/BigJohn043This podcast is for informational purposes only and should not be relied upon as a basis for investment decisions.

My research of Chris Rolls, the founder of PieLAB Capital, who went through the journey of building and selling his business, then starting a private equity fund, and then starting a permanent holding company.Their most successful portfolio company, Detector Inspector, have grown from $6.5 million in revenue to $84 million.Chris is a big fan of acquisition led compounders and serial acquirers.When comparing serial acquirers and private equity: “We got the end of the fund and we had to sell some really great companies. And being an operator, if you have a great company which is growing, and generating cash – you don’t want to sell such companies.”Fascinating lessons, I hope you enjoy listening as much as I enjoyed doing the research.Show Notes:00:00 - Intro01:10 - Growing Detector Inspector from $6.5 million to $84 million02:40 - The early years of learning private equity04:01 - 3 reasons why private market investing generates better returns?11:55 - Not wanting to sell great companies17:02 - Characteristics of PieLAB Capital’s portfolio20:39 - Becoming a long-term buyer and holder of businessesFollow Mikk/PrivatEquityGuy on Twitter: ⁠⁠https://x.com/PrivatEquityGuy⁠⁠This podcast is for informational purposes only and should not be relied upon as a basis for investment decisions.