“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 ·
Acquiring Minds · The Roll-Up with No Investors & No Clock
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Used recycled cash flow from Metro Wireless to fund the 20% equity portion of acquisitions
“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.”
“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”
“You would just, if I had five different funds, five different equity funds, I just take my top 10 or 20 holdings, rank all of them and see what the overlap is”
“…made permanent the $20,000 instant asset write-off, and businesses…using the instant asset write-off to ensure that they have cash flow…”
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