Mike Brown discusses Teamshares' corporate parent overhead and financial performance with Sam Lessin ahead of its public debut.
Assertion Not checkable as stated
Brown: Median Private Equity Funds Now Underperform the S&P 500
“The returns are really bad now. And so for that's, again, the capital's argument, the returns are terrible now, generally. The median fund. There's obviously ours, right? So it's almost, it seems like it's become venture-like where you've got a top decile that…”
Assertion Partly supported
Brown: PE HVAC roll-ups bought at 12x EBITDA are entering liquidation
“Literally people are buying HVAC companies for 12 times EBITDA. These are businesses that are like project based businesses, right? And now you're saying chapter seven liquidations of private equity backed HVAC things.”
Insight
Brown: There will never be enough buyers for retiring small-business owners
“And the Eureka moment was that look, this is a supply demand equation. They're just never going to be enough buyers for these businesses.”
Insight
Brown: 'For Sale By Owner' is a false proposition for small businesses
“The issue is, is that that kind of like for sale by owner Fizbo in the home market, it's a false value prop. There's a reason why people pay those fees. So that, that was sort of on the seller side. There's a reason why people say those fees, you kind of only,…”
Insight
Brown: Small Acquisitions Usually Need External Presidents for Financial Leadership
“In the smaller businesses sort of like up To a million or two. They're not generally someone who's ready to take on the financial responsibility for running the business. And that's why externally four out of five, three out of five businesses, you know, we ne…”
Assertion Not checkable as stated
Brown: Teamshares tax return is longer than Berkshire Hathaway's
“Our tax returns longer than Berkshire Hathaway. Like, this is the third, there are like almost a hundred subsidiaries in this company, right?”