THE PRIVATE EQUITY PLAYBOOK: MAKING BILLIONS FROM BUYING BUSINESSES
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- Опубликовано: 6 июн 2024
- Hey, welcome to another episode of Making Billions. I'm your host, Ryan Miller, and today I have my dear friend Adam Coffey.
Adam is a 3x bestselling author of Empire Builders, The Exit Strategy Playbook, and the Private Equity Playbook. He's a frequent contributor to Forbes and has sold over $2.5 billion to private companies.
What this means is that Adam understands how to buy companies for no money and sell them for insane profits and hes about to explain to you exactly what is private equity and how you can make insane profits from this phenomenal industry.
[0:00] Raising millions for startups and private equity deals.
[1:11] Entrepreneurship, leadership, and reinvention with a seasoned CEO.
[3:21] Private equity investing for beginners.
[7:33] Investing and entrepreneurship strategies.
[12:15] Private equity market trends and investment strategies.
[15:06] Private equity investing and industry growth.
[19:42] Entrepreneurship, business growth, and wealth creation.
[25:27] Entrepreneurship, business exits, and wealth creation.
[30:10] Buying vs starting a business, with insights on due diligence and valuation.
[33:42] Buying and growing businesses with no money down.
[40:13] Creative financing strategies for entrepreneurs.
[45:37] Entrepreneurship, investing, and making billions.
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Connect with Ryan Miller:
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Website: www.Making-Billions.com
[THE GUEST]: Adam is a 3x bestselling author of Empire Builders, The Exit Strategy Playbook, and the Private Equity Playbook. He's a frequent contributor to Forbes and has sold over $2.5B in private companies.
[THE HOST]: Ryan is a Venture Capital & Angel investor in technology and energy. He achieved market-beating placement growth in his first five years in the industry.
The private equity podcast for Fund Managers, Startup Founders, Venture Capital Investors
DISCLAIMER: The information in every podcast episode "episode" is provided for general informational purposes only and may not reflect the current law in your jurisdiction. By listening to or viewing our episodes, you understand that no information contained in the episodes should be construed as legal or financial advice from the individual author, hosts, or guests, nor is it intended to be a substitute for legal, financial, or tax counsel on any subject matter. No listener of the episodes should act or refrain from acting on the basis of any information included in, or accessible through, the episodes without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from a lawyer, finance, tax, or other licensed person in the recipient's state, country, or other appropriate licensing jurisdiction. No part of the show, its guests, host, content, or otherwise should be considered a solicitation for investment in any way. All views expressed in any way by guests are their own opinions and do not necessarily reflect the opinions of the show or its host(s). The host and/or its guests may own some of the assets discussed in this or other episodes, including compensation for advertisements, sponsorships, and/or endorsements. This show is for entertainment purposes only and should not be used as financial, tax, legal, or any advice whatsoever. 
Развлечения
This is video is as good as a graduate level education in mergers and acquisitions from an Ivy League school, and it’s free!!!You just got a new subscriber my friend.
The pleasures all mine. Thank YOU for the follow. What part stood out to you the most?
As a new immigrant in the US, I am really amazed the way how people are open to share their experience and give access to knowledge for the upcoming entrepreneurs, love it!
Happy to help in any way that I can.
Very insightful! Adam Coffey was a great guest 🙌
Thank you. Adam is phenomenal
It is absolutely priceless getting #Adamcoffey s 2024 & 2025 market outlook. Great Interview
Yes. Adam possesses some of the best private equity knowledge. It’s an honor to get him to present to all of our community. Turns out he’s a longtime fan.
I recently just read The Private Equity Playbook so this podcast was very valuable.
Thank you. What part of the show stood out the most for you?
Adam Coffey is a legend for Alternative Assets and Private Equity
Can you define a fixer upper company
🐐
adam has such a refreshing character i love it
lol. Love Adam. What part stood out to you the most?
Quality interview! thanks for this.
You’re welcome. The entire show interviews epic fund managers and entrepreneurs. Dove in brother. Let me know what you like or other guest you want me to bring on.
WOW..WOW...WOW What an AMAZING Interview! Great work Ryan
All the wow goes to you my brother. Thank you for subscribing. Feel free to share if you think it will help anyone. Hoping to help the everyday human to get their money right. What part stood out to you my friend?
So many gems. Thank you 👍🏾
You are so very welcome my man. What parts stood out to you the most?
What a treasure, thank you guys for bringing this to us! Incredible knowledge.
Absolutely. It’s a labor of love. What stood out to you the most?
10minutes in I LOVE THIS guy !
His mind is a laser beam 🔥🔥
Bought all his books I feel like i want to hear whatever the heck he has to share!
Yeah Adam is incredible. And he’s a fan of the show! What part stood out to you?
I love this guy😍 so much knowledge
Yes. Adam is phenomenal!?! That’s going to be you one day!
How do you only have 2k subs, insane value bought the book straight away.👏🏾👏🏾
lol. Thank you. Feel free to share with anyone you think I could help. I Appreciate the follow my friend.
This is a master class…!!!! Thanks for sharing your knowledge
It’s my pleasure. And thank YOU for your support and for subscribing. What stood out to you the most?
What a great speaker and a wealth of knowledge on this podcast, have to love YT algorithm for recommending this for me, what a great time to be alive.
Agreed. My hope is to bring all the knowledge and energy to help people see a brighter future
Phew! Adam really started cooking at 34:40. Great guest and thank you to the host for allowing your guest to really speak!!
You’re welcome. He’s amazing. Anything in particular stand out to you from the show?
@@MakingBillionswithRyanMiller yes I left a time stamp in my original comment of what stood out to me in the show.
U need aubrey de grey on
Who’s that? Why do you think they’d be a good guest?
NO FIXER-UPPERS!!! That is where I thought the deals were… MASTERFUL advice! ❤️🔥
Thanks a lot Lots of useful insights
Yes. You’re welcome. What stood out to you the most?
Geeeeeez! Adam's resume is ridiculous, and he also has Tony Robbins level of energy. Brilliant 🔥🔥
Yeah man. Thats gonna be you next!
Getting Adam Coffey on your podcast earns an automatic sub from me! Adam is the 🐐 ! 💯💯
Thank you what stood our to you the most?
Still I subscribed. I like a lot of this.
That’s awesome. Thank you. Happy to help bring on the best money managers in the business for you. I sincerely appreciate all the love my brother. Feel free to share it with anyone you think this could help
This episode is filled with golden nuggets! Major KUDOS!!!!!
Thank you. What part stood out to you the most?
@@MakingBillionswithRyanMiller Its all amazing! ahaha As AcquiEntrepreneur, the reminder to focus on recurrent revenues VS projet based.
Well thank you for subscribing. What’s an AquiEntrepreneur?
Best information I’ve heard in awhile and no sales pitch!! Thank you 🙏
Wow. Thank you. What stood out to you on this episode?
Appreciate this information...
You’re welcome. What stood out to you the most?
The one thing that resonates with me is Adam emphasising a similar view to warren buffet. Sometimes, things can actually be very simple. If it is simple, then you can understand it. If you understand it, you can succeed.
Yes. If it doesn’t make sense, it doesn’t make cents.
Thank you Ryan, i stumbled on this video and your channel, and I Am humbled and grateful for the generosity. It means a lot to me. I Am taking action. I felt the lack of capital was my problem, now, I HAVE NO EXCUSE!!!
That makes me so happy to hear. You got this. Any idea what type of company you’re looking to acquire?
We have a course on how to raise capital. Lmk if you’re looking to master the art. Without capital, none of this gets moving. With capital, you can have more options than you know what to do with.
this dude dropped some gems 30/20/10
Agreed. Adam has a ton of wisdom for explaining private equity and private equity funds. Feel free to share with anyone you think this would help.
Great episode. Glad to see a fellow Michigander. Btw, Mackinac Island, Michigan is a lovely little corner of the world (Adam's sweater).
I’ve head that about Mackinac. Glad you enjoyed the show. We also have a course on how to raise capital from investors. Lmk if you’re looking to master the art
Decent information. Thanks for the video.
Absolutely. What stood out to you the most?
Phenomenal!
Thank you. What stood out to you the most?
Wealth building doesn't just have to happen through acquiring RE, but also buying businesses is another viable option@@MakingBillionswithRyanMiller
Yes. 100%. So when are we going to see you on Forbes?
10/10 Podcast. tysm
Thank you. What did you like the most?
I like the concept of rollover. i'll probably be using this in my current acqui also. @@MakingBillionswithRyanMiller
Awesome. What acquisitions do you like to do?
As a recent grad in math/computer science these videos are always a pleasure to see. I realize that this early decade is the perfect time for me to learn and absorb as much I can. Can’t thank you enough for making this content and posting it to RUclips. I’d absolutely love to learn from you by working for you for free. If you have anything you’d like me to do I’d love to learn.
Ok. Follow me on IG (@makingbillionspodcast) and DM me your resume.
@@MakingBillionswithRyanMiller Thanks for the prompt reply. I’ve followed you and DMed you as requested.
Ok. Sent it off. If there is any interest, someone will reach out.
Dang i’m turning 35 this year, been building my print operation for going on 5 years and i’d say 90% of my net worth is tied up in this thing i’m building. That puts me at 125/130. Not a full-blown stop sign but i’m definitely running in the red. I’m under contract for my second acquisition for growth & im gonna read this guys books. Thanks for the info.
lol. I remember him telling me this and thinking, I guarantee most people listing to this part will be calculating this in their head
@@MakingBillionswithRyanMiller it’s unavoidable, great metric tho as long as you don’t treat it as the bible.
Yes. Totally agree. I can tell you’ve got a great mind for business.
Why tf are you
lol. Thank you. You’re incredible.
+1 I remember when i saw Alex Hormozis early content I could not believe so few knew him. I think quality contet gets discovered over time and the yt-algo does the rest.... enjoyed the conversation great guest thx for sharing mate
@@Prollosophwow. Thank you. It’s a labour of love. Feel free to share with anyone you think my channel could help.
This is a great interview. I wish Adam would've addressed how to deal with business brokers and their demands for "proof of funds".
lol. Excellent point. Perhaps a large investor as a partner may help you there. Just a thought. How have you managed to deal with that?
@MakingBillionswithRyanMiller No attempts at deals, as of yet. I'm still in the skill acquisition phase.:) However, Adam responded to my LinkedIn question about the same and said avoid brokers. Period. He sent a very reasoned and thought-out response to my inquiry. I look forward to his books and mentorship. I also look forward to consuming more of your content. Thanks, Ryan!:)
He didnt say specifically but the key said between the lines is buying businesses that are not for sale using Hoovers.
I'm on my 3rd listen in a row. Fabulous interview. Tons of nuggets and inspiring too.
Thank you. So happy you liked it. There’s a mountain of content to help you. Feel free to share it with anyone that is wise like you and wants to be Making Billions.
lets gooooo
lol. I love the enthusiasm. What part stood out to you the most?
Hahaha: Hey entrepreneur you don't want to be majority shareholder, roll-over your stock in my empty holding company where I'm majority owner.
Great salesman and very creative with the deal structure.
Lot's to learn
Yes. And they get paid 2x as a result. Once when the funding goes through and the second when the newco exits.
No white paper on this; however, what Adam is suggesting is they get paid for their 70% of the original company when the first round of funding goes through and get paid on their 30% when you exit the new company in 5 years (at a substantially larger valuation). Plus the original owner is engaged with their knowledge and energy into newco since they too are an equity holder. Everyone wins.
@@MakingBillionswithRyanMiller Regarding the 30% rollover, What does this usually translate to in terms of % of the new company? How is this calculated?
Great content btw. Frameworks or rules are simple and easy to remember. Helps for quick calculations/approximations.
Thank you. I believe it was mentioned that each new partner that comes on has less and less of a percentage simply because the newco valuation increases after each acquisition. So the first guy took the biggest shot so they get the greatest percentage of newco.
Does Adam have any info on building and selling an independent Insurance company?! That would be helpful
Perhaps. I’d reach out to his organization and see what they have for you.
This Information is Cheat Code...
Thank you. What part stood out to you the most?
@@MakingBillionswithRyanMiller How including an equity partner as the foundation, and using the funds of the equity partner to finance the SBA, which time could finance 50% of the initial consideration of target acquisition. That combined with transferred wealth, and no money down strategies.
Yeah. One of my favorite strategies that he outlined. Good catch. Now the question is: when will you be using this intel to bless your life?
I have the first 2 almost there
You can do it!
whoaaaaaaaaaa...enough said!
What’s your #1 takeaway on this episode? Would love to hear it
@@MakingBillionswithRyanMiller definitely seller equity vs seller debt. That point gave me a totally different perspective. I have his books, but haven't dived in, until today 😂
@@MakingBillionswithRyanMiller one question, is the 70% debt service coverage ratio loan expansion/acquistion or working capital with you and the owner forming a new corp? Thank you and great content!
Yes. That is what it appears Adam is saying. The loan is held by newco. Hence, the responsibility lies with all the shareholders to properly service the debt.
Solid podcast Adam. Would be interesting to hear you guys opinions on selling machine learning companies
What do you want to know?
As in, specifically, what did you want to know about selling your ML company?
There are lots of things that need to be put in place for a company to be ready for a sale. How does that change with an ml software company
Just an opinion here but I’d say investors want to know how viable the company they are about to buy will be in the future. Prove to them that the best (revenue) is yet to come. Other attributes (reasons they buy you) are also strategic positions. Perhaps you produce something they want to achieve an objective. Principle is the same, prove how you align. Nothing too specific for ml as business is all about revenue, expenses, assets, liabilities… and of course…. Cash Flow.
@@MakingBillionswithRyanMiller thanks for sharing your perspective. Keep up the great work with the pod.
🔥🔥🔥🔥
Thank you. What part(s) stood out to you the most? Thanks for the subscribe
Is this content in any form related or similar to the teachings of Dan Peña?
I’m definitely recalling some talking points learned from attending Grant Cardone’s 10X seminar in Tempe Arizona.
Probably best I add these three books to my reading list immediately.
Yes. 💯. Adam is a legend.
What the humble Adam Coffey needs to have a few of his books subtly placed around ( as if it was natural ) .. Surprised he hasn't got a bottle of snake oil on the mantle piece too !!!.. Tacky !!
Interesting
Just 1 0 Righ Here... LawLS... Good Podcast.
Hey thank you. Anything specific that stood out to you?
@@MakingBillionswithRyanMiller Absolutely, this is going great with the hours of M&A knowledge I have been #NEO Downloading into my psyche over last month... since not having a Job. Adam Coffey's Empire Building Books and of course your comment about being one of those having only #ONE #Zero in bank account. Technically it is 0.00 since life change most recently from working at a hospital to living in my father's house doing my best to jump into these markets. Thanks for asking. Am fundraising, as my current move while learning these deals / partnership advancements, now with cloud. - J
Adam looks like my Bossman where I worked Maintenance named Doug JR. from Hartman Rental's here in Collinsville, IL whom is taking over his father's business Doug Sr. - That also stood out to me.
😮
I love this knowledge thisbis new for me. I would like to be entreprenour. I am trying to start a business Nd I thought that we need lot of money to own a busisness. AND a lot of people online talk about to buy but Where we can go online to buy a business anybody know?
You can try bizbuysell.com. I’ve not used them yet so I can’t promise anything. But sites like that can help
Go into more detail on the rolling over the equity, do the 30 percent shares get transferred to a new (not ur main) holdco, then u go to the bank and say u wanna borrow 75 ltv on the whole business and here is 30 percent equity for the loan? Do you not meet the problem that 30 percent of the cash flow is gone or owned by the holdco?
And does this work for property as well?
Good question. I’m not a real estate investor, nor is any of this financial advice. I’d say the seller finance model in real estate may be similar. Could be a good place for you to explore
10:00 how to buy a business
Thank you for the tag. My question for you is, when are you going to start?
Do I need an LLC or credit to do this I want to be an investor using creative financing but don't want to own or start a business?
Not legal or financial advice. Just an opinion. Always check with professionals before doing or not doing anything from this show. For the LLC, That’s a solid question for your lawyer. They would advise you on the best corporate structure. For credit. Yeah probably. That would help with traditional lenders like banks. There’s also private debt lenders (funds) and government grants to explore.
WOW
Thank you. What stood out to you the most?
What does Adam think is the bare minimum amount of capital you would need to get into private equity? Obviously you have to get a loan especially if you don’t have millions but how probable is it the bank approved a loan with no money?
Good question. Sounds like he’s suggesting you can structure it properly with no money. I’d read his books to be sure. Lots to go though with this guy.
@@MakingBillionswithRyanMiller
Thanks, definitely is an interesting industry. I’ll have to research more. As he said why create a business when you can buy one 😀
We also have a course on how to raise capital if you’re looking to master the art. Let me know if I can help you in any way.
When you roll 30% worth 1.5M how do you know what %tage of the topco to give to the seller?
Typically based off the valuation or newco
@@MakingBillionswithRyanMiller I guess you would need to base the %tage on the projected future enterprise value of newco and make it worthwhile for the seller to roll his equity.
@@dickieblench5001exactly. You got this!
@@MakingBillionswithRyanMiller Thank you @dickieblench5001 for this post. This is exactly what I've been looking for. Thank You!
I will also be purchasing Adams's books. Which one is the best starter?
Personally. I would start with the private equity playbook.
I am trying too do some math if anyone can help. Founder A owns 30% of holdco(5m valuation). Founder B also owns 15% of holdco(10m valuation). Founder C owns 10% of15m. Founder D owns 7.5% of 20m. Founder E owns 6% of 25m. Adam owns 31.5% of 25m while he has huge debt on his name. Is this correct understanding?
I love, love, love this equation. Love that you’re really digging in and trying to understand. You’re incredible. I haven’t done the math on your description but relatively speaking yes. There is a declining ownership structure for each new owner that joins newco. However, the valuation of the newco continues to grow so essentially there is a smaller piece issued of a bigger and bigger pie. So while the % seems to shrink, the value of the whole pie grows. Hope that makes sense. Effectively the owner goes from owning a whole grape to half a watermelon. 🍉. Either that or all this talk of grapes, watermelons, and Pie must mean I’m hungry. 😆
Half a watermelon is bigger than a whole grape I'll take that!
We also have a course on how to raise capital if you’re looking to master the art. Let me know if I can help you in any way.
We also have a course on how to raise capital if you’re looking to master the art. Let me know if I can help you in any way.
Sir
Are you looking for a professional youtube thumbnail designer and RUclips video SEO expert?
Not at this time. I appreciate the offer.
It sounds interesting but can this work?
100%.
You can get more than one SBA loan but you can’t exceed the borrowing limit of $5MM in total across all SBA loans being written, what’s the plan on that?
Then you could possibly seek private credit or private equity.
Thanks,I 'm looking.
We also have a course on how to raise capital if you’re looking to master the art. Let me know if I can help you in any way.
We also have a course on how to raise capital if you’re looking to master the art. Let me know if I can help you in any way.
Who will buy your 10 companies for inflated value of 12 times?
Great question! Typically in this type of scenario, you can exit (sell) by taking it public or by selling to a large company or private equity fund.
This may be a silly question
Who operates all the businesses?
I'm 1 guy; how can I run 5, 10, or 20 7-fig businesses?
Thanks
Love this question. You hire a ceo. If I was in this situation, I’d incentivize the current CEO of existing companies to do what’s called an “earn out” where they have to stay on but can earn bonuses for their last few years if they hit milestones. One of them is to groom their successor. Otherwise, they continue to run that company.
@MakingBillionswithRyanMiller Thank you. Total noob, but I feel this strategy must have fatal flaws. Maybe I'll check out PE Playbook
Good call. Earners are learners. I would love for you to share with everyone your findings after you read it.
😂😂😂 did anyone else catch that? “Personally guarantee”? If you have no money you need assets to cover the loan… huge hole in this plan.
Would the 30% be the asset used for collateral on the loan for newco?
Glad you called this one forward.
Pick up the phone and start dialing.
Smile and dial!?! Love it
If seller is keeping 30% equity they will be personally guaranteeing SBA loan - not sure why a seller would be interested in doing so! Most seller I have encountered won’t.
Yeah. Great insight my man. Adam is suggesting that the incentive is to get paid 2x. Once from the acquisition (70% of current value that they are selling today) and a second time of the 30% of newco (which will be valued much, much higher after a few more acquisitions. Is that what you heard?
@@MakingBillionswithRyanMiller thank you for the reply! Huge fan of your podcast!
You’re amazing. Feel free to share it with anyone you think I could help. Nothing but love on this channel.
✍ ✍ ✍ He's about to teach you and me😉
Yes. So much wisdom from Adam. What part stood out to you the most?
Who wants to start an offshore business with me?😅
😳
The genius of "capitalism".
Not sure I follow? Care to expand on that?
Can you break it doewn to a 3rd grader next video
I will try.
too much jargon. dumb it down
That’s great feedback. Was there anything I can help clarify?
yes please. The rolling equity stuff. I think I got it by watching it again, but what it means is that the seller trades his equity for the equity in the holding company and then you retain some of the holdig company equity , the seller trusting that you will find the other businesses and add those as well and then sell the combined entities for a higher multiple. . @@MakingBillionswithRyanMiller
Yes. You got it. Some of this can certainly get a bit technical. You’re getting it. We also have a course on how to raise capital if you’re looking to master the art. Lmk.
Nu m ați convyns, yok, disparrrr
Ok
if you have to work for a living, this type of thing is horrible for a worker. the private equity comes in and changes everything, people get laid off or fired and the work load increases so much that a lot of people leave. I am against this. Please stop promoting this. It is killing the middle class.
Noted. What would it look like for a company/economy to be good for the middle class? As in, what conditions do you see that promote a healthy middle class? Genuinely asking.
No how about you stop promoting scarcity in the marketplace just because you have a very limited (old school) way of thinking. This is great information. If it’s not for you, that’s ok. But to promote not sharing good quality information is truly absurd. Looking at your content basically proves my point 🥴
I’d also say, we’re here to help people to not have to work their whole lives. To teach them that average people like us DEFINITELY can do this. I was there too, so I understand. It’s tough out there. What if there were a few people out there that genuinely want to help people achieve financial freedom & peace. Perhaps listening to the current episode on the 5 things I did to get out of the slums, poverty, homelessness, etc. I’ve been in a spot where I was praying to God to have any job. Eventually I decided to create my own and swore I would bring as many people up as I could. Join us in helping. Dig in, Spread the love. Lots of people out there praying for someone to light the way. If you’re reading this, you can do this. I hope to help.
Forget the middle class, you are either all in or all out. There are no safe jobs in an evolving economy and there shouldn’t be. We shouldn’t have so many unnecessary middle men and middle class people keeping us down. We need to get leaner and meaner. If your job isnt paying then go back to school, start your own business or get into the service industry.
@@devirickwatsonscreentalkme8084 putting me down does not negate the fact that private equity is killing the average workers livelihood.
First guest. All extremely obvious information for anyone 90 iq or above. The corruption will be punished. Needs
Yup. Corruption is never good. I prefer to see people do clean deals, very transparent. Thank you for reminding us of the importance of honesty. That matters a lot.
It is so immature and bad grammar to type in all caps.
Thanks for the feedback. Noted.
The LAST thing you dudes are is philosophers! complete self aggrandizing drivel
Interesting. Sorry you feel that way. If you have some feedback on how to make it a great show to help people, I certainly welcome it.
I'll give you ONE MILLION DOLLARS if you prove it honest. This is a fake video!
Ok.
This guy is sales man not good investors
Do you have any further information to expand on this? Or is this just how you feel?
Pure garbage here
Interesting. Care to share your insights? Always looking to make it better.
Where's your 2.5 billion dollars worth of sales ?
Full of crap
Sure. Could you be more specific?