Business Breakdown Duel & The Story of Nike's Sonny Vaccaro

**Shaan Puri** (0:00)
I'm going to blow your mind. Ready?
So Scotland, you know Scotland, you've heard of that country, Scotland, right? You've heard of that place.

**Sam Parr** (0:06)
Familiar.

**Shaan Puri** (0:07)
Land of kilts and sheeps, but also.

**Sam Parr** (0:10)
Redheads, but okay.

**Shaan Puri** (0:11)
And redheads, but it's also home to one of the coolest SaaS businesses that I've ever heard of. So it's called Petroleum Exports.

**Sam Parr** (0:30)
Let's jump in. We got a bunch of stuff today.

**Shaan Puri** (0:32)
We're going to do what's called a business breakdown duel. Sean and I.
Is that a Western duel, I guess. We both did a business breakdown and we didn't know that the other one was going to do it. And so now we're going to compare. I'm going to go first, which gives you the advantage because the person who goes last always usually wins in rap battles because it's always like when they do the applause, they're like, person A, person B, person B always wins.

**Sam Parr** (1:06)
I get to hear you say your thing and then I can make fun of what you said.

**Shaan Puri** (1:11)
Yeah. So anyway, you get the advantage, but that's okay. So I'll go first. Okay. But before I go first, I've got to give a shout out to Andrew Lynch from Net Income.
It's a sub stack. It's where I found this particular business and I'm stealing a lot of his numbers, but I'm going to blow your mind. Ready?
So Scotland. You know Scotland. You've heard of that country, Scotland, right? You've heard of that place.

**Sam Parr** (1:34)
Familiar.

**Shaan Puri** (1:35)
Land of kilts and sheeps.
But also, I think there's sheeps there. I don't actually know. That's how little I know about Scotland.

**Sam Parr** (1:43)
I thought you said redheads, but okay.

**Shaan Puri** (1:44)
And redheads. But it's also home to one of the coolest SaaS businesses that I've ever heard of. So it's called Petroleum Exports.
It's known as Petex. Petex, it's a challenging name, I know. And it's a highly technical specialist software crucial for oil and gas operations. You can go to petex.com to check it out. So pull that up, but Petex.
It's a highly technical specialist software. That's the backbone of some of the most important operations in the oil and gas industry. And it sounds boring, and that's because it is. However, last year, they made 78 million pounds in revenue, which is about $100 million USD.
And on that $100 million in revenue, about 67 million of it was profit.
And of that profit, they basically took out all the money. So they paid a dividend of 41 million pounds, which is about $60 million. And that was paid to the owner. And it wasn't even retained to the company, which means for every dollar they took, about $52 went directly to the... Or 52 cents went directly to the owner's pocket. Now, here's the cool part. None of this is rumors. This isn't hearsay. I'm not like telling you, I heard a story. Because in the UK, if you're a privately held company that hits a certain threshold in revenue, you have to submit your reports and you could just log in. It's called Companies House. You can just go there and you could log in and you could see all this information. And so I went and looked at many, many, many years of their data. And I'm gonna tell you a story about how this company came to be. So it was started by this guy named, we're gonna call him Abe. His name's Abe. His name, he's a Muslim guy, very, very, very challenging first and last name. Can you see his name? Can you tell me how to pronounce that? Do you know how to pronounce that?
Abdul Hamid is the first Abe and the last name. It's very challenging. There's a D and there's a J together. That's a very challenging.

**Sam Parr** (3:38)
So you are calling him Abe or he goes by Abe.

**Shaan Puri** (3:40)
I'm calling him Abe. His last name is, if you look at it.

**Sam Parr** (3:43)
I've met many Muslim Abes, but.

**Shaan Puri** (3:45)
We're gonna call him Abe. His last name has a D and a J next to each other. I don't even know how to pronounce that sound.
So I'm sorry, Abe.
It's a very challenging name to pronounce. So he started the company in 1990 It was based in Aberdeen, Scotland, which is basically like a hub for oil industry. It's kind of like similar to what Houston in America is. And the company originally served as a petroleum consultants for, and consultants to the petroleum industry as well as retailers. And they would create these mathematical models to help people in the oil and gas industry manage their projects.