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- đźź What's a small business HoldCo? - 3 success stories
đźź What's a small business HoldCo? - 3 success stories
HoldCos have been around for ages, they take many different forms
Ben Tiggelaar
June 19, 2023
The SMB Scoop back, I’ll admit I’ve been slacking recently. I’m hiring someone to help me get my personal house in short order so I will be more consistent with sending out this newsletter weekly.
This week is about HoldCos. Not sure what a HoldCo is? Big Deal Small Business wrote a post called HoldCo Discussion - great job at describing what a HoldCo is and where it exists in the entrepreneurship through acquisition (ETA) spectrum.
Permanent Equity HoldCo doesn’t intend to sell, no management fees, no investor control, no use of debt
This guy is building an acquisition empire in Missouri.
He buys companies all day, but never sells them.
Meet the forest gump of private equity:
— Colin Keeley (@ColinKeeley)
May 3, 2023
$30M revenue foundry HoldCo - started with one $2.7M revenue acquisition in 2017
Reg Zeller runs a $30M Holdco.
The number 1 piece of advice he gives to new SMB owners is…
“Find a peer group.”
Here’s why…
In early 2017, @RegZeller bought his first foundry.
$2.7M revenue
$500k SDE6 months after the acquisition he’d end up in the fetal position of his… twitter.com/i/web/status/1…
— Rand (@RandBusiness)
May 1, 2023
Marmon Group - from a $3M rev bicycle manufacturer to an empire worth billions
These guys built an acquisition empire in Chicago.
It started with the purchase of a struggling bicycle manufacturer for $95k.
And grew to $8 billion in sales and sold to Warren Buffett.
Here is their playbook...
— Colin Keeley (@ColinKeeley)
May 8, 2023
Check out the SMB Capital Connector platform I created:
For entrepreneurs seeking to raise acquisition capital from 475+ accredited SMB investors. Must own the business or have an acquisition under LOI.
For investors seeking passive small business investments (with good sponsors)
Ben Tiggelaar