
Why aren’t more $2-10M EBITDA companies hiring a CIO?
About this episode
This one hire is something all profitable, cash-flowing traditional businesses can do. Yes, it can be a significant investment -- great specialists aren’t cheap -- but in the right setup, it can completely change the trajectory of a company.
I share two real-world examples of owner-operated, non-glamorous businesses that hired a Chief Investment Officer to professionally manage excess cash. In both cases, capital allocation quietly became the dominant profit engine, generating the majority of group earnings while the core operations remained stable and conservative.
TIMESTAMPS
0:00 The hidden problem of excess cash in profitable businesses
1:55 When reinvestment, M&A, and dividends all stop making sense
2:00 Hiring a Chief Investment Officer
3:10 Case study: a fruit importer that turned cash into its main profit engine
4:40 Case study: a family manufacturer where capital allocation drove 80% of profits
6:45 Why capital allocation becomes the real growth engine over time
Sponsors:
https://capitalpad.com/ - A deal-by-deal private equity investing platform
https://www.spacebarstudios.co/inquire
Follow Mikk/PrivateEquityGuy on Twitter: https://x.com/PrivatEquityGuy
This podcast is for informational purposes only and should not be relied upon as a basis for investment decisions.
Get every episode summarized
Each time Buyers and Builders publishes, we email you a written briefing from the transcript — the topics, who appeared, and any specific claims, with the ad reads skipped.
Email me new episodesFree for 3 shows. No card needed.
Hosts & guests
No transcript yet
This episode has not been transcribed. Request it and it moves to the front of the queue.
More episodes
More from Buyers and Builders

Buying Three Founder-Led SMEs: Lessons from the Trenches | Simon Plummer Intervi...
Buyers and Builders

The Buffett-Munger Introduction That Changed Everything
Buyers and Builders

From Management Buyout to Fund of Funds | P. V. Ramanathan (Ram) Interview
Buyers and Builders

9 Add-Ons in 24 Months | Dan Lifshits of Dwelly Interview
Buyers and Builders