HoldCo Builders

A former executive turned entrepreneur shares an incredible journey of building a $500 million revenue company in just five years. Discover how acquiring 24 diverse businesses fueled rapid growth, while keeping cultural integrity in check. Learn about the investment strategies behind successful operations and the art of selecting effective CEOs. The discussion dives into the balance of organic growth and profitability, revealing insights into effective business management from a true M&A pioneer.

Here is the dream story of many entrepreneurs:Owning a business that generates so much free cash flow that you can invest in/acquire 8 businesses.I’d even call him Andrew Wilkinson Jr…Capital allocation at its best…Started in 2017…Today there are 8 companies in his portfolio.All while being 32, traveling & living in 20 countries, having Tim Ferriss as an inspiration and driving a Range Rover Sports.Most importantly, being generally happy and relaxed (my comments about him)."The freedom of location. For the past 7 years I’ve lived and worked in 20 different companies. Only thanks to the businesses I ran.”We discuss:— Building a list of companies to acquire— Finding the absolute best off-market deals— Growing businesses 2-3 times in 18 months— A 30-day post-acquisition action plan— One book that changed his life forever00:00:00 - Intro00:00:29 - Early failures turned into successful cash-flow machine00:03:20 - Andrew Wilkinson from Tiny as a big influencer00:05:18 - Acquiring a business using seller financing or not doing a deal at all00:07:54 - Capital allocation at its best - buying vs. starting00:11:19 - 8 businesses, 8 different CEOs00:18:35 - Growing portfolio companies 2-3x in 18 months00:21:19 - How to build a database of companies you want to acquire00:23:52 - How to acquire a business in 30 days00:27:59 - This is how you build a company where people want to work00:32:11 - Turning big mistakes and failures into success00:36:09 - Diversification, diversification, diversificationMy full conversation with Lee Betts, the founder of BettsCo — Stream now.Follow PrivatEquityGuy on Twitter: ⁠⁠https://Twitter.com/PrivatEquityGuy⁠⁠Join HoldCo Builders weekly newsletter on finding deals, raising capital, and growing small niche manufacturing businesses: ⁠⁠https://privatequityguy.beehiiv.com/subscribe⁠⁠Lee on Twitter: ⁠https://twitter.com/leebetts_This podcast is for informational purposes only and should not be relied upon as a basis for investment decisions.

Discover the transformative power of acquiring traditional businesses with revenues between $2-10 million. Learn how street smarts and genuine connections can lead to successful negotiations. The speaker shares insights on the happiness of old-school business owners and their stress-free lifestyles. Key negotiation techniques emphasize the value of silence and patience. A spontaneous trip to London reveals how ordinary companies hold extraordinary potential for investment. Listening is crucial—appreciating the hard work of business owners can make all the difference.

Learn how to supercharge your traditional business growth by 50-200% annually. Discover why many niche companies struggle with marketing and how to revamp outdated practices. Explore the differences between white label and brand-building, emphasizing direct customer connections. Dive into the importance of database marketing and tracking effectiveness to optimize growth. Uncover strategies to double your revenue while navigating the challenges of the $2 to $10 million revenue range. This is a masterclass in growth!

Dive into the fascinating world of private equity success with a master who achieved a stunning 72% IRR across 586 deals. Discover his unique approach to acquiring small companies and the significance of first-time CEOs in his strategy. Learn how he builds effective management teams while managing risk in smaller markets. Gain insights from personal mentors and family lessons that shaped his investment philosophy, emphasizing understanding and expertise in specific industries.

Nick Haschka, co-founder of Cub Investments, masterfully navigates the world of service company acquisitions, boasting a portfolio of 12 firms. He shares insights on finding the best deals, emphasizing the competitive edge of location and industry knowledge. Haschka discusses the unique challenges of working with retiring owners and highlights transformative strategies that leverage technology for growth. Balancing his entrepreneurial journey with family life, he offers a candid look at the importance of partnerships and the reality of small business investing.

Ben Wolff, co-founder of Oneira, has transitioned from a tech consultant to a real estate mogul, managing over $65 million in assets. He discusses his impressive journey from $30,000 in debt to generating $1.7 million annually. With industry-leading margins of 52-55% NOI, he reveals how social media helps secure direct customer relationships and enhance bookings. Ben emphasizes the importance of quality, sharing lessons learned, and the power of public engagement in building a brand. His insights exemplify innovative strategies for success in hospitality.

Rafael Quinn, co-founder of Alternative Holdings, shares his remarkable journey from selling everything at 26 to building a $127 million portfolio. He emphasizes the importance of investing in companies you understand and collaborating with great people. The conversation dives into the significance of cash flow, strategic acquisitions, and the lessons learned from his zero-deal period. Rafael also reflects on balancing family life with business growth and the role of luck in success, making it an inspiring tale for budding entrepreneurs.

Michael Cassau, founder of Grover and former Goldman Sachs analyst, shares his journey from finance to founding a billion-dollar tech subscription company. He discusses the intricacies of raising hundreds of millions, emphasizing the importance of a compelling narrative and investor relationships. Cassau reveals lessons learned from Rocket Internet, the challenges of early startup life, and the significance of high energy in driving results. With humor, he recounts fundraising stories and reflects on the balance of work and personal life.

Ujwal Velagapudi, a 32-year-old entrepreneur, runs a lucrative vending empire called UV Holdings with thousands of machines. He shares his journey of building an 8-figure EBITDA holding company without prior experience, often working just 3-4 hours a week while traveling the globe. Ujwal discusses how he funds acquisitions, manages operations single-handedly, and automates business functions. His key takeaway? "Just go and do it!"—an inspiring mantra for aspiring entrepreneurs looking to break into the business world.