If you are ever considering buying or investing in a profitable small business…
Or you want to build a holding company where each company is run by a CEO...
Here's my talk with Xavier Helgesen (co-founder of Enduring Ventures), where he shares everything he knows about buying businesses after 20+ acquisitions and looking at 1000s
- Currently 17 companies in the portfolio
- Revenue 100m+
- Spends plenty of time with family and children
1. Pay for Quality of Earnings even on small deals.
2. The best way to find a CEO for a business is to ask the seller who has asked about buying it in the past.
3. Look for the smallest, weirdest niches. Less competition, greater margins.
We discuss:
– Everything he knows about buying businesses after 20+ acquisitions and looking at 1000s
– His MEMO to his 25-year-old self that he posted on his 45th birthday
– The biggest risks and rewards of buying small businesses
– What makes Nick Huber one of the best entrepreneurs he’s ever met
– Finding the best CEO for Portcos
00:00 - Intro
00:31 - Most “bad” things that happen to you are not as important as they feel at the time
04:29 - Selling Apple and Nvidia in 2011 and Google in 2008. “Don’t be me.”
08:27 - Consistency for physical activity matters more than maximal excursion
13:36 - Your most important mission in your 20s is to surround yourself with the most talented people in the world in your chosen craft and learn from them
20:27 - Owner operated businesses are super efficient. Owner does six jobs. You will probably spend more to professionalize
29:40 - Look for rich owners as there are a lot of small business owners who are not that rich
37:34 - Make sure management only gets paid bonuses when they distribute cash flow to owners
41:19 - The best way to find a CEO for a business is to ask the seller who has asked about buying it in the past
43:35 - Most CEOs and entrepreneurs have no idea how to build an audience that they can use to raise capital or sell products and services
56:46 - Don’t fall too in love with the business. You’ve always got to be ready to walk away.
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Xavier on Twitter: https://twitter.com/XavierHelgesen
This podcast is for informational purposes only and should not be relied upon as a basis for investment decisions.