“If you buy companies at 4x… you’re buying 10 M worth of cash flow… you’ll have cash flow from subsidiaries to fund later deals.”
GB
Giuseppe Balzano
Buyers and Builders ·
“If you wanted to buy Palm, the best way is not to buy Palm itself, but to buy 3Com which owned Palm, getting the other businesses for free.”
Alex Edmans · The Rational Reminder Podcast · The Madness of Markets (Alex Edmans)
Play from 39:30
39:30
Audio streams from the publisher’s own feed. Verbatim does not host or copy it.
What was described
Buy the parent company (3Com) instead of the over-valued subsidiary (Palm) to capture the subsidiary plus other businesses at a discount
Said nearby on the same subject
“They might buy an eight, 10 block, split it… live in one, build it tax-free, have the other in a company and pay company tax.”
EM
Emilio Martinez
Geared for Growth Property Investing Podcast ·
“When General Catalyst companies buy a business, they usually pay about 60% to 70% in cash. And the founder rolls about 30% equity into the new company.”
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Said on The Startup Ideas Podcast
“Before you started kindergarten, your parents worked with Dr. Betsy Brown on writing a letter to all the other parents at your school for the experience you might have”
♫
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