Episode of My First Million with Sam Parr and Shaan Puri.
Transcript
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Kind: captions Language: en [Music] they are buying like can we talk about what they bought they’ve come on the pod before uh and they’re pretty public about stuff so they’re buying companies like cool pool construction companies so it’s like uh you know pools are this like amazing business that you could you could do and they bought one and like i think it’s called dolphin pools or something like that they bought it in arizona it crushes it they hired this one operator who’s like really good who took it over from the original owner the boomer owner and basically it’s grown like crazy and that’s like one of their cash cows now and i uh and they also bought a internet web like um i got in the country like they don’t have like a t or time warner or whatever they they have like local providers and they bought one of those and it’s doing well and i have family members so my dad is an entrepreneur like five as kids they bought five different yeah a bunch of internet service providers and they’re all doing i think pretty good um and so my dad owns a small business that none of his family is taking over my father-in-law owns a small business who and it is really it’s a killer business i mean um and they uh he somehow the uh our new brother-in-law is now gonna take it over and seeing the turmoil that he had to go through in order to he was like well i spent 40 years building this thing and i guess if no one that i love wants it i’m just going to shut it down and it was like kind of tragic and it’s like i’m literally willing to give this to a family member and they can make many millions of dollars a year if they wanted to do this it’s just it’s free you could have it and people didn’t want to do it and so i’ve seen this process and it is like an emotional it’s it’s a really is it’s a huge challenge and this is very a very interesting market there’s some stats about how many do you know how many boomers are retiring and like that’s like some absurd number it’s absurd it’s like it’s like it’s like a quarter of the country like or or a third of the country biggest wealth transfers of all time is about to happen it’s the like that that group of people when they pass down their hair it’s gonna it’s like many trillions of dollars i think i don’t know if that’s that might be hyperbole but i think it’s something like that some ridiculous number and then that’s like a lot of people that are just not gonna have to work but also don’t know what to do with it and similarly there’s many many businesses that was when enduring first pitched it they were like they just showed me the stats they’re like there are this many boomer businesses where they want to retire they don’t want to run their business anymore and their kids don’t want to take it over and like those businesses are up for grabs and they’re like too small like they’re not sexy as a startup and they’re too small for big private equity and so we’re going to be like basically like permanent equity where they’re going to be they’re just going to buy it and hold these amazing businesses for a very long time and they keep doing that one after another uh like i think sieve and xavier they’ve rolled up like almost 100 million dollars of business equity off of a two million dollar starting equity amount like we [Laughter] it is crazy i i invested in what i didn’t have a lot of money when i first invested in so but at the time it was like 10 or 15 000 or something like that that i invested it was like that was a big deal it’s just been like it’s just been growing and growing and growing no so they so they were like they’re like sean like you’ve helped us like think through this idea and like they do like i like this stuff i’ll be helpful along the way so they’re like you know we want to offer you like if you invest we’ll also offer you like an inves an advisor or like like an advisory grant that’ll just match your investment and uh and i think they thought i was gonna do like you forgot to file the paperwork no no no i think they thought i was gonna put in like 25k or like max or like 20k something like that so they’re like okay cool you got like 20k of equity we’ll give you 20k worth of advisory shares but i was like a big believer in what they were doing so i put in 200 000 and then they were like they’re like oh and i was like look you don’t have to like i get it you don’t have to give me 200 000 of advisor shares but xavier was like nope a deal’s a deal and um like i was like we didn’t sign anything and like dude i’m totally okay with it but he’s like no like like we will we’ll honor that and also like i know you’ll like you’ll deliver and so since then i’ve had this like immense desire to deliver on that it was actually the best thing he ever did because he got me to basically work for him for free uh for this one like for this act of goodwill i am like i will i see your goodwill and i raise you ten times goodwill on my own side it’s gonna that’s gonna end up being a great one of your better investments i would think depending on i don’t know when you got in if were you with very we both were you both yes then that’s gonna i think it’s gonna crash exactly like i think already let’s say conservatively that’s probably up 20x you know like something like that in valuation you think that’s up 20x because if they go raise now they basically have i don’t know exact numbers but like somewhere between 25 to 50 million of revenue closer to 50 million in revenue from these businesses now um that they’ve acquired off of 2 million you