Invest Like The Best
Episode 226 Learnings from a Year of Unexpected Events
Invest Like The Best

Episode 226: Learnings from a Year of Unexpected Events

Invest Like The Best

Episode 226

Learnings from a Year of Unexpected Events

Brent Beshore is the CEO and founder of Permanent Equity. We cover the economy post-Covid, key lessons learned, and the nuances of a private equity deal process.

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[00:03:52] - [First question] - Why last year ended up being so bullish

[00:07:14] - Deal dynamics of the current landscape

[00:09:54] - Lessons learned about managing a team through the pandemic

[00:14:39] - Observations on the housing market and the pool industry

[00:18:56] - Current labor force dynamics of trades 

[00:21:18] - Considering labor dependency when investing in new businesses

[00:23:10] - His perspectives on the future of tech through his investment lens

[00:25:50] - Seeking out traditional businesses that reinvent age-old frameworks 

[00:27:50] - Key stages of the art and science of evaluating and acquiring a company

[00:31:45] - How much information he wants to know before making an initial offer

[00:34:25] - Psychology of structuring and aligning incentives post-acquisition 

[00:37:41] - What defines a great deal negotiator

[00:40:05] - His most creative act when structuring a deal that didn’t work out as well

[00:42:17] - His most creative structuring act that proved useful for the upside

[00:43:34] - Notable changes in large-cap private equity markets

[00:45:41] - Skills he feels he can improve on over the coming five years

[00:48:30] - Coaching small companies on how to recruit top tier talent

[00:52:49] - How to effectively get people to say yes to job offers and openings

[00:54:19] - Absolute and relative changes in the opportunity set of small to mid-cap markets

[00:57:40] - Lessons learned from strong support networks and onramps of upward mobility

Learnings from a Year of Unexpected Events

Introduction

Patrick
My guest today is Brent Beshore. For those that don't know Brent from his frequent appearances on this podcast, he runs Permanent Equity, a unique private equity firm that buys and holds companies indefinitely. Brent has also been a close friend for more than five years. Brent and I revisit our conversation from the depths of the COVID crisis one year ago, to touch on key lessons learned and where that leaves us today. Brent sits at a unique area of the economy. So I particularly enjoyed his anecdotes on inflation and how to operate around these dynamics. I hope you enjoy my conversation with Brent Beshore.

The Economy Post-Covid

So Brent, the last time we did this on the record, although we've probably talked a hundred times since, was in the depths of COVID and concerns over its impact on the economy. And I was doing this series with ... I tried to get someone from every part of the market, from credit, from public equities, with you on private equities. And I think it would be fair to characterize that last conversation as pretty dour and dire, that we were both really concerned about the knock on effects that COVID might have. And here we are basically a year later, and I think it's gone about as well from an economic standpoint as we ever could have hoped in our bull case last year. I'd love you to begin by describing why you think that is. From your seat, you see a ton of businesses, a ton of sort of main street businesses all across the country. I'd love you to just talk through what's happened over the last year, what it feels like today, and what's driven the change.

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