01:13:59 · Giuseppe Balzano
[01:13:59] S1: Yeah. I know. It's... It means that you're you're... You just go slow. It's like, listen, with 25,000,000 plus, 25,000,000 in that, you have 50,000,000 in the I dollar. Okay? Mhmm. If you buy companies at four x, because this is the average. Okay? Four, five. Let's let's let's let's do five, because it's easy from a mathematical point of view. You're buying 10,000,000 worth of cash flow. It's not it's not cash flow. It could be EBIT, but in Italy, you know, you can have a cash conversion by postponing some tax. So let's assume that out of 10,000,000 in EBIT in EBIT, you you have 8,500,000 in free cash flow. Okay? That can be leveraged to buy more companies. So the question is not when I kick. It's not if I kick the the the snowball, it's more when. And if I decide to buy 10 companies to Morgan, the amount of capital I need would be a lot because I need more capital, more equity. You know? So if I decide to go slower, two, three, maybe two acquisitions first year, three second year, four third year, you know, I will have then the cash flow coming from the from the subsidiaries. You know? So at the third year, I would have eight plus eight plus eight twenty four multiplied by duo... By $250,000,000 more. You know? So I don't need to raise more equity. Maybe I can refinance. I don't like to refinance up to a point in which you have five x debts, you know, on on the on the EBITDA because it's not healthy. So the only solution is to play with time. I think time is the only variable that is not related to anything. You know? So the only thing is to just wait. And maybe in two years, I will stop the acquisitions engine, and I will resume after twelve months. Because by then, you know, we'll have more cash. Could be. Or maybe I go back to my shareholders and they say, hey, guys. This is the best company ever in Italy. I wanna buy it, so I need more capital. You know? In that case, I'm gonna do a capital in Greece. So I want to be flexible and entrepreneurial in the way we build the company. Okay. Do
01:16:05 · Mikk, Giuseppe Balzano
[01:16:05] S0: you want to add anything? I think it's been awesome, man. [01:16:09] S1: No. Thank you. Thank you. Thank you. I think the reason why I I did the interview, because there could be a question, you know, is because every time I find myself replying to challenges or questions, I always learn something. You know? So I think that is the the the the best... The only... I think this is the only reason, really. Second is, yeah, I would like to help people, if you're not coming to Italy, of course, to to do something successful. On the other side, I think you can do it without listening to me, honestly. I think I didn't do anything, you know, so special. So I think if you if you have the, as we say in Italy, the the the energy, you know, to do that, you know, you would do it without listening to anything. So I think it's more on the first. This is the only thing I wanted to add. I think it was helpful. Thank you for finding me. Thank you for convincing me to do a a first interview. It was easy. And thank you for for the questions. Happy to to have done so. [01:17:15] S0: Okay. Thanks. I'll stop here.