How I Bought 8 Traditional Businesses and Built a $127M Portfolio | Rafael Quinn Interview

Ever wondered who are the young folks who build these great business portfolios?2020 $17.0m2021 $44.1m2022 $64.9m2023 $126.8mAll that within a reasonably short time.While spending tons of time with kids and family.I mean today Rafael Quinn is 44 years old, but decades from now people will be Googling him to find out how he started this massive conglomerate called Alternative Holdings.The best investment advice:• Buy companies you understand• Run by people you want to work with• Pay a fair price“No matter how important I believe cash-flow is. Every 6 months I’m reminded again of how much more important it is.”We discuss:— Why they look at EBIT instead of EBITDA— Dividend payments while building wealth— A 5 year period of doing ZERO deals— How to create value by prioritizing your strengthsShow notes:00:00:00 - Intro00:00:23 - At 26 he sold everything, slept on a floor for 15 days and moved to Panama00:02:55 - 1st acquisition and how it all got started00:05.00 - How much money Rafael invested in the first deal00:07:50 - The importance of having the right co-founder - whoever says no wins00:11:00 - “Better be lucky than smart”00:11:26 - Being investor vs operator00:13:30 - The number 1 key factor of the most successful holdco conglomerates00:17:55 - The amount of debt they use00:21:20 - What has been the average acquisition multiple00:31:46 - Time spent on each business per week00:39:40 - CEOs and their attitude & work ethic pre- vs post-acquisition00:42:50 - The acquisition process and the discipline of say no to 100s of businesses00:48:01 - Cashflow, cashflow, cashflow00:51:10 - Spending time with kids is the best thing everFollow PrivatEquityGuy on Twitter: ⁠⁠https://Twitter.com/PrivatEquityGuy⁠⁠Join HoldCo Builders weekly newsletter on finding deals, raising capital, and growing small niche manufacturing businesses: ⁠⁠https://privatequityguy.beehiiv.com/subscribe⁠⁠Rafael on Twitter: ⁠https://twitter.com/RafaQuinnThis podcast is for informational purposes only and should not be relied upon as a basis for investment decisions.