NiklasJames.com

1yr runway is too little

1yr runway is too little

Most new searchers/sponsors give themselves 2 years of runway to close a deal. Remember that it usually takes 6+ months from when you meet a business owner to you close the deal (LOI period is usually 100+ days). 1 year is tight. There's a compounding effect to deal sourcing: more time, more inflow, more connection points, more conversations that mature, etc.

About the author

Hi, Niklas here 🙂📝

This is my journey as an independent sponsor & equity investor.

I publish tactical insights for deal-by-deal private equity.

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