 Richpix Daily is an online community for traders to exchange smart, straightforward, and profitable investment ideas. Join us today at richpixdaily.com, subscribe to us on YouTube to learn useful stock trading secrets, and discover the next ten-banker. Hi, how are you doing today? I'm your host Rich, here on behalf of Rich TV Live with our very special guest, Callum Lang, the CEO of MBH Corporation. How are you doing today, Callum? I'm very good. Thanks, Rich. Really looking forward to watch that. Yeah, me too. I'm really excited to learn more about your company and let's get right into it, Callum. Can you tell us a little bit about yourself and how you got involved with MBH Corporation? Yeah, absolutely. So I come from an entrepreneurial background, started off as a young kid, hustling, setting up businesses, and first entrepreneurial business was a recruitment company at the height of the dot-com boom, which was supplying telco engineers. And that did very well, which of course, at the time, I thought was all down to me later found out I was in the middle of a bubble and couldn't do much wrong. But it was it was my first sort of grown up entrepreneurial venture. And then I spent the last 20, 25 years just starting building and then ultimately buying and selling small businesses. And about six years ago, myself and my business partner started working on this concept to help small businesses level the playing field. And MBH, which is MBH Corporation PLC, is our iteration of that. So we went public, listed two and a half years ago, and I am the CEO of MBH Corporation. Very good. And I love small businesses. The whole world's been built off of small businesses. So I think you're doing something very special there. Can you tell us a little bit about what your main goals are for 2021 to help generate revenues for the company? Yes, you'll say first of all, I mean, I completely agree with you on small business. And this is kind of the key element is that 50% of the world's GDP is made up from small businesses. And yet there's no investment product that allows sophisticated investors to invest in small business. If you're anything like me, you've probably invested in your friends' small business from time to time. And they always tell you they're going to exit in three to five years. And I've still got investments that are gathering dust that I can never get back out of, right? So yeah, so small businesses are risky. They're illiquid and there's no way to connect investors with them. So what we do is we bring well run, typically owner operated small businesses into our holding company. And so these are not kind of the high tech, flashy crypto cannabis and anything like this. This is old school, boring businesses, but with those old fashioned concepts like customers and profits. So construction companies, health companies, transport companies. I think the average age of the businesses in our group is 23, 24 years old. The last three companies we brought in were 40 years, 50 years and 57 years. So there's a lot of experience there. So these are all companies that are generating revenue already. They are able to win bigger contracts because they're part of the PLC. But also we're adding about a new company every single month. We did 12 acquisitions last year. We've done three so far this year. So, you know, interestingly, we've got these quite boring, traditional, slow growth companies, and yet we're growing incredibly fast because we're adding these great companies into the group. So that's the plan for 2021 is just keep adding great companies. Sounds like a little bit of Berkshire Hathaway. I like that. So the joke NBH stands for multiple business holdings, which is I like that appropriate if boring. The joke from one of the early journalists that covered us was that we're many Berkshire Hathaway with the emphasis on many. Well, yes, I mean, Warren Buffett's done very well acquiring his growth. And I really like the model of acquiring growth. But I also like the model of acquiring companies with a history and a track record of success. So you're not investing in startups. I think that's actually really brilliant. And one a month, that's impressive. NBH Corporation is acquiring like we've talked about a lot of companies to help grow its shareholder equity. Can you go through some of the recent acquisitions, which you've talked a little bit about and break it down for our viewers with what these acquisitions mean for the company? Yeah, absolutely. And this is I mean, this is why I love my job because each one that we bring in is a great story to tell. So the last company that we brought in a 40 year old taxi company just outside of Cambridge, where I grew up in the UK. So this is a taxi company. We now have three taxi companies in the group. And a lot of people kind of think, well, Ubers come along, taxis are dead. But actually, not at all. The taxi companies and what our taxi companies are doing is they're building a nationwide network of taxi companies. And actually what they're really building is a nationwide network of last mile logistics. Because if you're a taxi driver, you don't mind whether it's a person, a parcel or a pizza. You're just a delivery station. So that's a really, really interesting space. But the acquisition that we did before that was a 50 year old engineering company, heavy mechanical engineering company in Wales out of the UK. This was a company that was started by the guy's dad going from door to door with his toolbox fixing problems. It's now built into one of the biggest machinery companies in Wales and they want to grow through acquisition as well. So that's really exciting. And then the first one of the year was a company called Boulder Sausage, which has been producing and selling bacon and sausage in Boulder, Colorado for 57 years. So I mean, just it's very, very diverse. But these are all great companies. Well run decades of experience and they'll still be doing what they're doing in decades to come. So yeah, really, really exciting to have them in the group. Now it's very important when you're building a company to have a strong team. Can you talk a little bit about the MBH corporation team and what each member brings to the table? Sure. So MBH itself, the holding company, is incredibly lean. We outsource pretty much everything that's not core. So basically we've only got two key employees. Myself as the CEO and Victor Tan, our CFO. One of the things we noticed with a lot of conglomerates and a lot of companies that do this roll up and list is the head office just keeps growing and growing and growing. And actually small businesses run incredibly lean because it's the founder's money. It's only big corporations that have admin assistance on six figure salaries walking along everywhere. So we keep our very lean so that we can return cash to shareholders. But actually every time we bring a company in, the CEO of that company, the founder of that company, we refer to them as principles. We add this principle to this. It's kind of like a Senate of principles within the group. And each one of these has decades of entrepreneurial experience. So we have an earth from different industries and different countries. So there's an incredible wealth of knowledge within the group that now has, it's like the ultimate mastermind group because they've got a vested interest in each other's success as well. So you get a lot of sharing of information and best practice, which it's like as we were talking before this interview about the power of community and what you'll feel to it, which is hugely impressive. But this is like that community but of successful small business owners. So it's a really nice club. I like that. And it seems like you're doing business internationally. So you mentioned multiple countries already. That's pretty exciting. Can you tell us what sets MBH corporation apart from its competition? Yeah, so I think the big difference is we come from a small business background. And when we bring on a company, in effect, we're taking them public through our holding company and we trust them to run the business the way they have. So they have a lot of autonomy. They keep their brand, they keep their culture, they keep their hiring and firing. And that's important to us entrepreneurs because quite frankly, we make terrible employees. We're not good at being told what to do. So if somebody spent 50 years building up a business, they're not gonna listen to me if I tell them they should be, they need to update their webpage or whatever. So we let them run the business the way they've always had. And these are already multimillion dollar businesses. They've already been through recessions. These are smart businesses. So we have this kind of bottom up approach that let's leave the businesses alone and let's give them that autonomy. And I think that's very, very different from the finance industry as a whole, which tends to look down on small business and tends to assume, normally the way you would do it if you were private equity, for example, is you buy the 50 year old company, you fire the management team that's been there for years. You put in a 32 year old with an MBA who's never risked their own money in their lives. And you say, go and sort that business out and number one is lever it up with as much debt as possible and then try and flip it to the next guy. Whereas we're just playing a different game. We don't need to mess around with these businesses. They're great businesses, but we can grow incredibly aggressively by adding more and more businesses. And because we do give those entrepreneurs the autonomy, we get over a thousand applications a year from companies that want to join us, which is a great strategic advantage. That's impressive, thousand applications a year. My goodness, no shortage of opportunities there. Can you give us a breakdown of your share structure? Here at Rich TV Live, we really pride ourselves in finding companies that are responsible with their share structure. I, a tight float is so important to me. Now, when you're acquiring your growth, you're typically giving something up. So sometimes you're gonna have to give up shares. Can you break down your share structure and maybe explain a little bit about how much is held by insiders? Yeah, so I think this is one of the strengths of ours is that in effect, if you imagine you're a small business owner coming in to us, you're giving up 100% equity in your private company for X million in shares in NBA. So we'll create new shares, but we'll only ever do earnings per share accretive deals. So we'll never do dilutive deals. That's first thing. Second thing is 70% of the shares are owned by those insiders. So they're owned by the principles themselves. Now, these principles aren't coming to us for an exit. If they want exits, they can go elsewhere for better valuations. That's not what this is about. They're joining us as a platform for growth to preserve the legacy of their business. So they're not looking to sell. They're looking to hold. Now, they're all locked up for 12 months anyway. Then they're on a three-year orderly market agreement. So they need to offer it to their peers. But these guys aren't selling again. If anything, and they have been recently buying, they're buying, I've bought a million shares in the last 18 months of the company as well. And we're very, I think the expression is long-term greedy on this. If you think like in two and a half years of being listed, we've added 25 companies into the group. What we're looking to do and with a thousand applications a year, this is, we haven't really scratched the surface. We're looking to build a massive community of fantastic cash-generating businesses. That's really impressive. So you're also very selective. You're not just got 25 companies, 25 businesses in two and a half years out of a thousand applications a year. So you're being very selective like that. Can you tell us how much MBH corporation has in the bank? It's very important that we understand the finances of a business, the meat and potatoes. And how much debt the company has to give our viewers an idea of the strength of the company's balance sheet. Yeah, so normally I'm completely transparent and not bashful about these things at all, but we're about to release our 2020 numbers. So I have to be a little bit careful about what I can reveal. Absolutely. And by the way, they're coming out on April 30th. So it's a pretty soon. So we've created a microsite so to go and have a look. Basically we're very healthy. All of the companies that come into the group are cash generating and profitable. We're not fans of debt in the companies themselves. Now there was some quite attractive debt last year because of the COVID and government. So some of them took on some debt there, but it's very low that the debt to equity ratio is very low compared to your average conglomerates. We issued a bond to do some acquisitions as well rather than just our equity. So we issued our own bond, but that's internal debt. So again, we have a much higher comfort level with that versus external debt. We tend to, we're trying to create something that's gonna be around in a hundred plus years because we kind of owe it to the underlying businesses to preserve their legacy. That's the number one killer of small businesses. So generally speaking, we try to avoid it as much as possible. Great, that's what I like to hear. If there was one thing that you would want shareholders to know about MBEH Corporation today, what would that be? There's so many things I want them to know. Look, I think a lot of people don't understand the small business world. And I think a lot of people assume that small business owners just want to cash out that they're focused on the money. And actually that's not really the case. If somebody's built a business up over 10, 20, 30 years, they're an important part of their community and they want to preserve that legacy. They want to keep supporting their community, their team. And so we've got these great businesses that are long-term investments. We're a buy and hold holding company. But we have this advantage we've already talked about of being able to add in a significant number of companies very quickly. So I think people look at us and they see companies across multiple countries, multiple industries and they perceive a lack of focus, whereas actually we're incredibly relentlessly focused on finding those great, well-run owner-operated small businesses sort of across the top of small business across multiple industries. And I think that's really where the opportunity is to almost create a new asset class for investors to get into these micro-businesses that otherwise would be completely unapproachable already. If a shareholder or anyone that's watching this video wants to get in contact with the company, what's the best way for them to do that? So we're incredibly open, we're incredibly transparent. We respond to all investor inquiries. So mbhcorporation.com is our website. We have a YouTube channel. I'm afraid it's not a patch on your YouTube channel, but we're early days and we're trying to get there. We've put out a lot of interviews with the principals, with myself, with the board members. So that's mbhcorporation, YouTube, Twitter, LinkedIn. And yeah, we'd love to hear from you and answer any questions you have. Super excited to do this interview today with the CEO of mbhcorporation, Callum Wang. Thank you Callum for joining us today. Thanks, it's been a pleasure. Love talking about it. Now, before we say goodbye, I have to let everyone know that Rich TV Live is strictly for education and information purposes. Please, everyone, do your due diligence. Speak to our financial advisor before you invest in anything that we discuss or talk about here in Rich TV Live. If you like the video, smash the like button, comment down below, share the video everywhere, and hit that subscribe button for future updates. If you're not winning, you're not watching. We bring in the winners and we bring them to you first. This is Rich from Rich TV Live with the CEO of mbhcorporation. Put it on your watch list, put it on your radar. Thank you for watching. Thank you Callum. Have a great day. Keep up the great work and hope to have you on the show again soon. Definitely. Thanks a lot, Rich. It's been fun. Always a pleasure and thank you for watching, everybody. Have a nice day.