Rafa Quinn – Building A Diversified Lower Middle Market Holding Company

Today’s guest is Rafael “Rafa” Quinn, co-founder and President of Alternative Holdings, a diversified holding company with subsidiaries in food services, retail, industrial sales, and business process outsourcing. 

Rafa’s origin story has already been covered in other podcasts, so we instead begin in 2011 with his first deal, an industrial sales distribution company in Panama. Rafa shares how that first deal helped shape his long-term philosophy on evaluating companies, including the two recent water business acquisitions.

We then proceed to cover topics such as the horizontal Holdco model, advantages of vertical integration, and playing to your strengths as an investor. We close out the conversation with Rafa emphasizing how his strong partnership with his business partner has been critical in both overcoming obstacles and sustaining his ongoing passion and dedication to a career as an investor.

Discussion points:

• Rafael’s first deal and establishing HQ in Panama 
• Adapting to market changes in energy sources
• Inventory consignment vs distribution model
• Horizontal holding companies vs. vertical integration
• Warren Buffett’s approach to post-acquisition incentive alignment 
• The practical application of zero-cost budgeting
• Adding value without being needed in the day-to-day
• Rafael’s philosophy on long-term growth strategies and investment 
• Intangible qualities of good business brokers
• Benefits of finding the right business partner

Masters in Small Business M&A (sign up for podcast drops here) is produced by the team at Axial (www.axial.com). Axial makes it easy for small business owners to confidentially discover, research and connect with top-ranked M&A advisors and professional capital partners. In every episode, we explore the dynamic world of small business M&A, interviewing a mix of proven and emerging owners, operators, acquirers, and M&A advisors whose strategies and methods are being put to the test.

If you’d like to go deeper, head to Axial.com, where we make available the Axial member directories, downloadable tools for dealmakers, the Axial quarterly lower middle market investment banking league-table rankings, the SMB M&A pipeline report, and other useful information. If you’re a business owner, professional acquirer, or M&A advisor, you can start using Axial for free at Axial.com.

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Resources:

Rafael Quinn LinkedIn

Peter Lehrman LinkedIn

Axial Website