How Do You Go From Start Up To $1bn Valuation in 5 Years?

2020-08-16

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"If you live your life in balance sheet you are back to an account telling an entrepreneur telling them how to run their company". #CallumLaing lifts the lid on the broken and corrupt world of #venturecapital and #privateequity. PE/VC had their heyday 20 years ago when they were able to pay much less to buy companies, but their success back then has led to massive inflation. In order to make money today, they have to force their investments to strip out costs, go into massive debt and pursue insatiable growth and the expense of longevity. In this very ...

"If you live your life in balance sheet you are back to an account telling an entrepreneur telling them how to run their company". #CallumLaing lifts the lid on the broken and corrupt world of #venturecapital and #privateequity.

PE/VC had their heyday 20 years ago when they were able to pay much less to buy companies, but their success back then has led to massive inflation. In order to make money today, they have to force their investments to strip out costs, go into massive debt and pursue insatiable growth and the expense of longevity.

In this very frank interview we discuss toxic impact of the Silicon Valley boys club. We explore the damaging illusion that VC/PE are the smartest people in the room, the cartel like behaviour PE firms operate to give the illusion of success - in 2019 over 30% of PE sales were to other PE companies.

"I need to give my investors their money back with a return so I sell you my company on the promise I will buy 2 of yours next year. That way I can show how clever I am when I pay back my investors today, and you can do the same next year". Well over 70% of companies seduced by the promise of rapid growth and riches, lose everything. Often it's closer to the 95% mark.

We lift the lid on the facade of stock options as a way to get rich. Too often it's a honeytrap that leaves those who made the company exitable, nothing, or worse. In the dot.com boom, options saddled paper millionaires with a crippling tax liability and they were forced into bankruptcy.

We examine the myth of the great minds in many of the big management consulting and strategy firms and their broken business models.

Callum shares his philosophy that is allowing MBH Corporation PLC to achieve hypergrowth in the value of their stock by acquiring profitable, traditional, "boring" businesses like kitchen fitting companies, construction, caravan companies, leaving majority ownership and control in the hands of the business owner.

Callum gives a fantastic piece of advice as his best lesson from his years of scar tissue.

We discuss the potency of gender and ethnic diversityto add value and perspective and the idiocy of limiting your talent pool. We didn't intend to make many friends with this episode and I think we succeeded. Please share your thoughts.

LinkedIn: linkedin.com/in/callumlaing

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