“It's $300 million equity cap ... they'll generate $75 million worth of cash flow over the next year. They've got $100 million of net cash”
♫
Said on Monetary Matters with Jack Farley
“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.”
Giuseppe Balzano · Buyers and Builders · He's 30, Raised $25 Million, and Bought Two Boring Businesses | Giuseppe Balzano Interview
Play from 1:14:16
1:14:16
Audio streams from the publisher’s own feed. Verbatim does not host or copy it.
What was described
Limit acquisitions to 2-3 per year and buy companies at ~4-5x cash flow, using cash conversion tricks to avoid raising additional equity
4-5x cash flow, 10 M cash-flow purchase yields ~8.5 M actual cash flow, 3 acquisitions per year
Said nearby on the same subject
“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.”
♫
Said on The Startup Ideas Podcast
“We raised money from influencers and we also gave them equity and in fact, paid them to promote in equity instead of cash”
TM
Thrive Market Nick Green
How I Built This with Guy Raz ·
“Property manager raises rent every quarter… if you can predict when those rent increases are going to happen, then that can help also with your pro forma and cash flow.”
JW
Jason Williams
Ironclad Underwriting Podcast ·
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