For the last 20 years, private equity followed a simple formula: buy with leverage, cut costs, rely on multiple expansion, exit at a higher valuation. That playbook worked incredibly well. But it no longer does. In this episode, I break down why the old private equity model is structurally broken - not just cyclically - and why a new model is emerging. A model where cheap debt doesn’t save you, multiple expansion can’t be assumed, and real value creation matters more than spreadsheets. TI...
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For the last 20 years, private equity followed a simple formula: buy with leverage, cut costs, rely on multiple expansion, exit at a higher valuation. That playbook worked incredibly well. But it no longer does. In this episode, I break down why the old private equity model is structurally broken - not just cyclically - and why a new model is emerging. A model where cheap debt doesn’t save you, multiple expansion can’t be assumed, and real value creation matters more than spreadsheets. TI...
How These Firms Turn $5M-15M Companies Into 100x Returns
Business Builders And Buyers (ex-HoldCo Builders)
24 minutes
2 weeks ago
How These Firms Turn $5M-15M Companies Into 100x Returns
How these serial acquirers generate 20-40% annual returns for decades? They buy small, niche, profitable companies again and again. In this episode, we break down the strategy, the structure, and what private buyers can learn from the greatest acquisition machines on earth. TIMESTAMPS 0:00 Why tiny acquisitions beat big deals 1:12 21x, 120x, 375x: Lifco, Addtech, Constellation & Heico’s insane returns 2:07 The simple playbook: buying small boring companies again and again 3:56 Engine #...
Business Builders And Buyers (ex-HoldCo Builders)
For the last 20 years, private equity followed a simple formula: buy with leverage, cut costs, rely on multiple expansion, exit at a higher valuation. That playbook worked incredibly well. But it no longer does. In this episode, I break down why the old private equity model is structurally broken - not just cyclically - and why a new model is emerging. A model where cheap debt doesn’t save you, multiple expansion can’t be assumed, and real value creation matters more than spreadsheets. TI...
