E59: Inside The Mind Of A Holding Company Innovator: Brent Beshore Cache Flow podcast

E59: Inside the Mind of a Holding Company Innovator: Brent Beshore

10d ago 1:06:54

المحتوى المقدم من Brian Dainis. يتم تحميل جميع محتويات البودكاست بما في ذلك الحلقات والرسومات وأوصاف البودكاست وتقديمها مباشرة بواسطة Brian Dainis أو شريك منصة البودكاست الخاص بهم. إذا كنت تعتقد أن شخصًا ما يستخدم عملك المحمي بحقوق الطبع والنشر دون إذنك، فيمكنك اتباع العملية الموضحة هنا https://ar.player.fm/legal.

Dive into the fascinating world of HoldCos with Brent Beshore, the mastermind behind a 15-company empire. From untangling the definition of a HoldCo to exploring the gritty details of CEO transitions, this episode uncovers the delicate art of building a lasting business conglomerate. Join us for an insightful blend of strategy revelations and Brent's personal entrepreneurial journey that's anything but linear. Don't miss this masterclass on nurturing small giants!

Here are a few of the topics we’ll discuss on this episode of Cache Flow Podcast.

What exactly is a HoldCo?
HoldCo vs. Private Equity specifics.
Unpacking the 'adolescent phase' of a business.
The challenges of centralizing business operations.
Insightful strategies for hiring CEOs.
Adapting to unexpected business conditions.
Balancing cash flow and reinvestment decisions.

Resources:

Connect with Brent Beshore:

Connect with our host, Brian Dainis:

Linktree

Quotables:

02:14 - The nature of what a HoldCo is, you know, by nature it's usually there's no terminal end date to a HoldCo versus a private equity fund usually as a 10 year lifespan. So we're kind of in the blend of between you know, we've got a 30 year initial term. We can also renew, we can go longer than 30 years if we want to. So we have a lot of the functionality of a HoldCo, but technically each fund is its own private equity fund. I mean, private equity broadly just means you buy equity and private company. So technically a HoldCo is also a private equity firm in the sense that it buys equity in private companies.
36:39 - Brian: They're not ever fully responsible for their own failures or successes. But, you know, especially failures, specially failures, which is what you want. You want people to own their success and their failures and be responsible for their success and failures. And it's, you know, it makes sense that the way that works in a single company applies when you have a portfolio of companies. So it kind of, I had to hear it from you to fully soak in the why part, but it, it makes total sense at that point.
Brent: Well, here's another one that's kind of like this, that's an insight that's hard earned. And when I say it initially, you're gonna say, wait, what? Because I would've said the same thing, which is, small businesses don't have access to good talent. And you're like, no, wait a minute, is that making fun of or is that poking fun at at small businesses?
28:59 - We should see clear opportunities and we should be able to clearly see the lids on that business that's been holding it back. And then we're really honest with people, Hey, these are the things we wanna do after close, this is what we want to help you guys with. This is how we wanna be operationally involved so that we all win together. And they're like, great, we don't know anything about that stuff. So help us. We need help.
25:19 - So John Malone, the cable industry was his thing. He didn't care about anything else. He wanted to be in the media, cable business, and he was gonna go as deep as possible as he could do it. And he built an incredible business based on that. He used a tremendous amount of debt. He was able to finance a lot of it through pre-tax dollars. It was brilliant, right? I mean, he actually created the term EBITDA, right? So the term EBITDA we used, like John Malone actually created that so that he could get banks to understand how to finance his operations. That's how smart he was.
50:35 - We don't always hit home runs. We're hitting a lot of foul balls and we're hitting a lot of ground and rule singles, you know, I mean, so it's not like this is not an exact science and we don't have it all figured out. So just as you know, take everything with a grain of salt. We've done this for a long time. We've worked with a lot of CEOs and I would say we keep getting humbled over and over and over again. And I think this is just, look, the thistles and thorns of operating business

59 حلقات

Here are a few of the topics we’ll discuss on this episode of Cache Flow Podcast.

What exactly is a HoldCo?
HoldCo vs. Private Equity specifics.
Unpacking the 'adolescent phase' of a business.
The challenges of centralizing business operations.
Insightful strategies for hiring CEOs.
Adapting to unexpected business conditions.
Balancing cash flow and reinvestment decisions.

Resources:

Connect with Brent Beshore:

Connect with our host, Brian Dainis:

Linktree

Quotables:

02:14 - The nature of what a HoldCo is, you know, by nature it's usually there's no terminal end date to a HoldCo versus a private equity fund usually as a 10 year lifespan. So we're kind of in the blend of between you know, we've got a 30 year initial term. We can also renew, we can go longer than 30 years if we want to. So we have a lot of the functionality of a HoldCo, but technically each fund is its own private equity fund. I mean, private equity broadly just means you buy equity and private company. So technically a HoldCo is also a private equity firm in the sense that it buys equity in private companies.
36:39 - Brian: They're not ever fully responsible for their own failures or successes. But, you know, especially failures, specially failures, which is what you want. You want people to own their success and their failures and be responsible for their success and failures. And it's, you know, it makes sense that the way that works in a single company applies when you have a portfolio of companies. So it kind of, I had to hear it from you to fully soak in the why part, but it, it makes total sense at that point.
Brent: Well, here's another one that's kind of like this, that's an insight that's hard earned. And when I say it initially, you're gonna say, wait, what? Because I would've said the same thing, which is, small businesses don't have access to good talent. And you're like, no, wait a minute, is that making fun of or is that poking fun at at small businesses?
28:59 - We should see clear opportunities and we should be able to clearly see the lids on that business that's been holding it back. And then we're really honest with people, Hey, these are the things we wanna do after close, this is what we want to help you guys with. This is how we wanna be operationally involved so that we all win together. And they're like, great, we don't know anything about that stuff. So help us. We need help.
25:19 - So John Malone, the cable industry was his thing. He didn't care about anything else. He wanted to be in the media, cable business, and he was gonna go as deep as possible as he could do it. And he built an incredible business based on that. He used a tremendous amount of debt. He was able to finance a lot of it through pre-tax dollars. It was brilliant, right? I mean, he actually created the term EBITDA, right? So the term EBITDA we used, like John Malone actually created that so that he could get banks to understand how to finance his operations. That's how smart he was.
50:35 - We don't always hit home runs. We're hitting a lot of foul balls and we're hitting a lot of ground and rule singles, you know, I mean, so it's not like this is not an exact science and we don't have it all figured out. So just as you know, take everything with a grain of salt. We've done this for a long time. We've worked with a lot of CEOs and I would say we keep getting humbled over and over and over again. And I think this is just, look, the thistles and thorns of operating business

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E59: Inside the Mind of a Holding Company Innovator: Brent Beshore