We began buying businesses in Panama in 2011. In 2018 we made the decision to diversify into the USA. It took us a while to get quality deal flow, but by 2020 we were receiving quality companies at fair prices.
I was sure I wanted to diversify into another country, but I assumed we would acquire one business, integrate it, and then move on to the next, just as we had done since the beginning. My partner suggested we raise outside capital. He saw the size of the market and the number of quality companies we were receiving and wanted to have the capital to take advantage. He had thought through the pros and cons and was ready to take on outside investors. Something we had never done before.
Hearing this plan for the first time took me aback. It brought up doubts, fears, and insecurities. It took me a while to process it. Here are some of the doubts I had to overcome, and some of the questions I had to answer:
Impostor syndrome. Was I good or was I lucky? We all feel this. The more successful people I meet, the more I realize no one has it all figured out. I had a 10-year track record building a successful holding company. I had been fine taking the risk with my money, but now others would depend on me. Was I up to the task?
Fear of losing the partnership. We had been 50/50 partners for 10 years. Now there would be minority investors with a seat at the table. Would that ruin our working relationship? What would that look like?
Fear of failing in public. Again, I was successful for 10 years, but there were many ups and downs. Many defeats. They had been private. Now our results would be public, others would know the challenges we face, the missteps we make, and the poor decisions. Would that affect my ability to invest and lead?
The fear of change. I was happy with our growth trajectory. With our results. I did not feel the need to grow bigger and faster. Taking on investors seemed unnecessary at first.
The fear of losing control. We had complete control of our company. Now we would be building something with outside money. While we had initial controls in place to ensure our autonomy and majority control, the door to future dilution would be opened. The possibility of one-day losing control of our company was a fear in my mind.
At the end of the day, I was able to work through these doubts. These fears. My partner is patient, he understood that he had already processed all of this prior to presenting the idea and that I needed time. There is no growth without change. That is a fact of life, a fact of business. Today I am grateful for the push he gave me. I have learned more about myself through this process. At the end of the day, that is what it is all about.