Why Peter Wrote a Book on Holding Companies | EP24

In this special episode, host Sei-Wook Kim interviews Barrel Holdings co-founder Peter Kang about his new book, The HoldCo Guide: How Entrepreneurs Structure and Build a Holding Company That Lasts. Peter shares the organic journey that led him to write the book, from scaling a single agency to building a multi-agency holding company, and why no existing resource fully addressed the topic. He breaks down the core concepts every entrepreneur should understand: the spectrum between capital allocator and operational HoldCos, the critical balance of centralization vs. decentralization, and the financial metrics that truly drive compounding growth. Whether you're running one business or several, this conversation offers a practical look at how to think strategically about profits, structure, and lasting value. Key Moments 1. The organic origin story behind The HoldCo Guide and why Peter decided to write it. 2. Defining the two major types of holding companies: capital allocators vs. operational HoldCos. 3. Where Barrel Holdings fits on the HoldCo spectrum and how its approach has evolved. 4. The delicate balance of centralization vs. decentralization in a holding company structure. 5. Sector-specific HoldCos: advantages, risks, and how Barrel navigates concentration. 6. The crucial financial metrics for HoldCos: free cash flow, ROIC, and MOIC. 7. Why governance, compensation, and tax planning are non-negotiable chapters in the book. Real Talk Takeaways 1. Writing a book doesn't have to start as a grand plan; it can grow organically from sharing what you're learning in real time. 2. Holding companies aren't one-size-fits-all; most exist on a spectrum between pure capital allocation and hands-on operations. 3. Centralize only what creates leverage (like finance and governance); decentralize operations and customer-facing decisions. 4. Sector specialization can deepen operational expertise but also increases exposure to industry downturns. 5. Free cash flow is the lifeblood of a HoldCo; without it, you can't fuel the compounding flywheel. 6. Governance might sound dry, but it's essentially the "design manual" for how your holding company works. 7. Even single-business owners can apply HoldCo principles to strategically reinvest profits and drive growth. Timestamps 00:00 – Introduction: Interviewing Peter on His New Book, The HoldCo Guide 04:03 – The Two Major Types of Holding Companies: Capital Allocator vs. Operational 07:45 – Where Barrel Holdings Sits on the HoldCo Spectrum 09:12 – Centralization vs. Decentralization: What to Control and What to Delegate 11:52 – Sector-Specific HoldCos: Pros, Cons, and Barrel's Position 14:41 – The Financial Metrics That Matter: Free Cash Flow, ROIC, and MOIC 17:50 – Why Governance, Compensation, and Tax Structure Deserved Deep Dives 20:51 – Who the Book Is For and Where to Find It Notable Quotes "The big insight from this book is this definition of HoldCo's, the two different major types. One being the capital allocator HoldCo, and the other is what I'm calling the operational HoldCo." — Peter Kang on the core framework of holding companies. "Free cash flow becomes a very important number because if you can convert a higher percentage of your EBITDA to free cash flow, you have more to compound." — Peter Kang on the essential metric for HoldCo growth. "Centralization versus decentralization is a huge theme. What do you intentionally centralize at the HoldCo, and what do you deliberately try not to manage centrally?" — Sei-Wook Kim on structuring a holding company for scale. "One failing work stream can sink the entire relationship, no matter how well others perform. Clients evaluate your agency as a whole." — Sei-Wook Kim on the importance of aligned operations across a portfolio. Links & Resources Peter Kang on LinkedIn: https://www.linkedin.com/in/peterkang34/ Sei-Wook Kim on LinkedIn: https://www.linkedin.com/in/seiwookkim/ AgencyHabits Website: https://www.agencyhabits.com/ AgencyHabits on LinkedIn: https://www.linkedin.com/company/agencyhabits/ Barrel Holdings Website: https://www.barrel-holdings.com/ Barrel Holdings LinkedIn: https://www.linkedin.com/company/barrel-holdings/