Why Brent Beshore Doesn't Use Debt To Acquire Companies | My First Million Podcast

TL;DR

Brent Beshore avoids using debt when acquiring companies, relying instead on all-equity cash deals to keep acquired businesses robust and non-fragile. He argues that debt increases fragility and risk, especially given unknown factors like pandemic risk and the difficulty of fully understanding a company before owning it.

Key insights

• Debt transforms a good company into a fragile one by widening the variation of possible outcomes.
• Unexpected events (e.g., pandemic risk) illustrate why avoiding leverage reduces vulnerability.
• Until you own a company, you cannot fully know what you are getting; there is always more risk than anticipated.