Permanent Equity
@PermanentEquity
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Permanent Equity stewards companies that care what happens next. We invest with no intention of selling in family-owned companies throughout North America.
Columbia, MO
Joined February 2011
At Permanent Equity, we’ve long said that we buy boring businesses, but the reality is that’s not the full story of what we value and what we do. When we invest, we steward companies that care what happens next. Read about the journey here:.
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What other people are obsessing over:.Cryptocurrency.Autonomous Driving.Drones.Machine Learning. Us:.HVAC.Doors.Meat.Billboards. #boring.
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We believe in the long-term durability of family businesses, but Covid-19 is not a typical storm. To help, @PermanentEquity is launching Safe Harbor, a program for businesses that can responsibly use $3MM+ and are interested in a long-term relationship.
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Compensation plans are incredibly powerful. and notoriously difficult. In our latest essay, we lay out what we've learned about building an incentive structure that engages your team and drives productivity while avoiding common pitfalls.
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"The way to win is to work, work, work, work and hope to have a few insights." - Munger.
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"One should recognize reality even when one doesn't like it, indeed especially when one doesn't like it." - Charlie Munger.
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COVID-19 presents big challenges for small to mid-sized businesses. We’re thinking about reduced demand, access to resources, & customer, talent, & relationship concentrations. Tomorrow we’ll record a discussion for those of us in this space — tweet or email us your questions.
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New Fund,.New Partners,. — Spoiler Alert —. Same Old Strategy. The 2019 Annual Letter:
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The Messy Marketplace Podcast launches publicly next week! 41 episodes with @BrentBeshore and @EmilyLEldridge annotating and expanding on the book topics. Want early access? Post a picture of your copy of the book and we'll send you a private link to a sample of 5 episodes.
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The CARES Act was signed into law this afternoon and contains a key provision called the "Paycheck Protection Program." We asked our legal team how this impacts small business. Here's their answer:. *Note that this essay is not legal advice.
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One of the most common questions we've heard from operators in response to COVID-19: What expenses should I cut and how do I do it?. We wrote up our thinking for you in our latest piece: How To Cut Expenses.
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is now Permanent Equity. “Putting the Permanent in PE”: Same approach. Same people. New URL:
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We intended to release this article before the pandemic and its economic impact took hold. But then we thought - maybe there's never been a better time to build a realistic, simple, dynamic, logical, and useful budget. Our latest here:
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“The Messy Marketplace: Selling Your Business in a World of Imperfect Buyers” is now available for pre-order.
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What To Expect If Permanent Equity Buys Your Business: What Changes and Why
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Our 2020 Annual Letter will be released later this week. The year certainly offered plenty of lessons. Sign up to receive the letter here:
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"Oh go ask so-and-so, they know everything about [that process, that account, that machine, that filing system].”. If people in your org are regularly saying something like this, you might have an institutional knowledge problem. 🧵 5 ways to start documenting:.
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The calculations behind PPP Loan Forgiveness can get a little complicated. We built a spreadsheet to help you keep track of your PPP loan over the next 8 weeks. Download it now from our Small Biz Toolkit:. (not financial advice, your mileage may vary).
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A reminder of our Open Data for Operators page: 57 free and regularly updated data sources ranging from consumer behavior and travel volume to jobs and construction. We hope you find it helpful - let us know if there are sources we should add.
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We've never invested in:. 1) A perfect company.2) A company without advantages worth protecting. So how do you introduce change without disrupting your edge? Our latest: How to Manage Change.
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Honestly, we’re good with less zeroes 😉.
Honestly, if the business plan for your company doesn't get you to a trillion dollar market cap, it's probably not even worth starting at this point.
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GORILLA MODE: What Amazon Means For The Rest Of Us .
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The adventur.es Home - "A strong family is built upon a strong foundation - both figuratively and literally."
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Overhead costs and company culture are closely related. Mr. Buffett in 1979:
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Never fear. @morganhousel helped improve the writing in the editing process. 😬 We appreciate your generous support of this project, Morgan. Pre-order here (shipping begins Monday):
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We're building a toolkit for #smallbiz to help navigate the current economic turmoil and gov't assistance. Now available:. 1) Calculator for Paycheck Protection Program.2) Our internal memo on EPSLA.3) Our internal memo on EFMLEA. Adding more as we go.
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Here’s why we had more than one toast at lunch yesterday. The Finish and Starting Line:
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“Permanent equity that can make generational bets” - @morganhousel describing us better than we describe ourselves.
New piece with discussion of military promotion, @BrentBeshore's new fund, and golf.
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“Money is not a commodity. Most money is ruthless and short-term oriented. we optimized for something else.” .- @BrentBeshore talking about finding LPs for PE1 fund with @NotreDame students.
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Foundation 1: Keep Our Word, Always. “We aim to do what we say we will, when we say we’ll do it, for the price and terms we agree to, without exception.”.
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“CEOs have 5 essential choices for deploying capital—investing in existing ops, acquiring other businesses, issuing dividends, paying down debt, or repurchasing stock—and 3 alternatives for raising it—tapping internal cash flow, issuing debt, or raising equity.”.The Outsiders.
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15 Highlights from "15 Years in the Trenches of SMB Acquisitions and Operations":.
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In case you're looking for something to read/listen to while you're:. a. Traveling.b. Digesting pie.c. Taking some you-time. 🦃Here's the big list of everything we've published recently.🦃.
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Foundation 2: No Assholes.“Life is short and tradeoffs abound, so we want to work with people we admire, in places we enjoy, on work that matters.”.
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Introducing The Messy Marketplace #Podcast, an annotated #audiobook for business owners/ops, their advisors, and our peers. Episodes are publishing now. Discussion timestamps are in the descriptions. We look forward to hearing feedback on this experiment!
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The CARES Act passed on Friday includes a massive expansion of Unemployment Insurance. We asked our legal team for their analysis of how it's designed to work and the incentives it might create:. *this essay is not legal advice.
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@PeterWirt @acquanon @girdley @BrentBeshore @jimsteinsharpe @tsludwig Our article on how to acquire: Finding Middle Ground - Demystifying Deal Structure: Valuing Companies: How We Evaluate Investments: Other Essays here:
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NEW ESSAY: Build a Better Small Biz Budget for 2023. We're FIRMLY in the back half of 2022, and new challenges (inflation, supply chain disruptions, labor shortages) continue to pop up. Here's our best advice for building an *adaptable* budget for 2023.
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The "Families First Coronavirus Response Act" (FFCRA) was signed into law Wednesday night. We asked our legal team: "How will this impact Small Business?" Here's their answer in our newest piece:. *Note that this essay is not legal advice.
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We've put together 3 anonymous surveys about the impact of COVID-19 and would love for you to participate. SMB Owners/Execs: Employees: Lost your job: We'll be sharing the results in the coming days.
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Hanging out at our office in the “other Columbia” today!
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“If your aim is for things downstream of culture: good outcomes, good decision-making, or even good intentions, then you best also aim for good luck, because you’re going to need it.”. Our 2021 Annual Letter:
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We’re excited to officially welcome @greg_trinkl and @nashsteviej to the team tomorrow. Apparently they’re so excited that they showed up to the office on Sunday.
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What a crazy, wonderful day. Thank you to everyone who has reached out publicly and privately. We were excited to share the letter, but the feedback has exceeded all expectations. We look forward to continuing the adventure, and sharing highs, lows, and lessons along the way.
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We’re publishing a 2-part, 7800- word update to tomorrow. Operators & Owners: make sure you’re on our mailing list:
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We’re growing and could use a little help! We are currently looking to fill two accounting positions within and our family of companies. For more details, enter Orbit and @keliemorgan will reach out! .
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Our General Counsel is passionately debating sports investment principles in the English Premier League, based on our latest book club read: The Club.
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Happy Holidays from the adventur.es team (and a few of our better halves)
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A sustainable competitive advantage: “The willingness to wait longer than your competition,” as explained by @morganhousel
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New Essay Alert: The Greatest Competitive Advantage. "Extreme reliability is a conscious attempt to only say what you mean, do what you say, and do so when you said you were going to do it.".
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Back to basics. Back to our roots. Back to the future. We’ve been revisiting what it means for us to be Permanent and have gone back to our Foundations. 🧱a thread🧱.
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"I sell everything at cost."."How do you stay in business?"."I buy below cost.".- Joke from Howard Marks' dad.
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People who have information about an individual case .
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New essay:. "At Permanent Equity, 'Do No Harm' is a primary cornerstone of our approach, defined within the context of our values and priorities. 'Do No Harm' sounds simple. But what counts as harm?". #PermanentEquity #PrivateEquity #SmallBiz.
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Enjoyed a great happy hour to welcome our newest team member @Clayton_Dorge! We initiate people by having them tell embarrassing stories over wine.
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Gorilla Battles: Q1 2018 Update on What Amazon Means for the Rest of Us
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On the new pod @fortworthchris talks:. Finding a North Star.Building exceptional teams.Nurturing real friendship & support.Knowing where you add value & find satisfaction.Prioritizing an operator's mindset. w/hosts @BrentBeshore & @DavidACover.
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2020 Resolution:. Publish more frequently. On that note, new post coming out tomorrow morning. .
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Congratulations to @SussB on her 10-year anniversary on our team! She’s an incredible leader and we couldn’t imagine without her.
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New Programs. Interested in careers? Join The Orbit: Interested in connecting biz owners with us to evaluate deal potential? Become a Scout: Want to analyze potential deal value? Use Instant Appraisal:
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Happy Halloween from the highly caffeinated, Patagonia vest-wearing, Allbirds step-counting VCs in the office today. Costume Inspiration:
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🚨New Outside Insights out now!. @johnhfio w/ @BrentBeshore & @DavidACover talk:. Artists vs. Warlords.Storytelling vs. Worldbuilding.Cynicism vs. Truth.The next Disney (and why it won’t look like Disney).
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“Essentially, capital allocation is investment, and as a result all CEOs are both capital allocators and investors.”.The Outsiders.
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Lemons and Mixology: Our 2020 Annual Letter. “We made it, despite viruses and murder hornets and political insanity. Rarely would I call mere survival a notable accomplishment, but hey, it was 2020.”
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New essay out tomorrow morning. Join the mailing list here:
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Thank you to everyone who came out to see us yesterday in SC and FL! It was great to see what feel like old friends (@mikedariano, @SpencerBElliott) and meet new ones.
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A CEO & his/her Board should stand, join hands & in unison declare, “What is smart at 1 price is stupid at another”
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“The first six months of 2018 have proven to be the most jam-packed in history.”.Our Mid-Year Update:
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“Most of the year it felt like we were sitting in the middle of a big puzzle, during a particularly windy day, watching pieces plop down around us and scrambling to figure out how they all fit together.”. Our 2018 Annual Letter:
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🤔We buy boring businesses .
It shall be called "The Boring Company".
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How do you know if your business has operational dependence on its owner?
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Many of you have asked us about the Paycheck Protection Program and Independent Contractors (1099). We've added the following update to our article. Note that this is not legal advice.
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New Resource Now Available:. OPEN DATA FOR OPERATORS . Aggregating regularly updated and freely available data on consumers, travel, logistics, food, production, jobs, construction & more to help inform operators.
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Boosted Chick-Fil-A’s average order size for the day.
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As the economic impact of COVID-19 goes wider and deeper, we're re-sharing this piece from 3 weeks ago: How to Cut Expenses:
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Boring Businesses: ."Less glamour. "."You just make a lot of profit."
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On the 1st episode of Outside Insights @ShaneAParrish (The Knowledge Project & @FarnamStreet) talks w/ @BrentBeshore and @DavidACover about why your New Year's resolutions won't last, the importance of ritual & his most costly mistakes as an investor.
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3 offers structured 3 different ways. Which offer is best?. More on interpreting deal structures:
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Ladies & Gents, our CEO. .
Ever wondered what $10K gets you?. Me, with the lovely folks at @LoveINCColumbia, belting out @taylorswift13. If you're as disgusted with my singing/dancing as I am, consider donating to Love INC to make yourself feel better.
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