NiklasJames.com

Don't Buy Seller's "Lifestyle" Argument

"The seller has treated it like a lifestyle business" is a sponsor's code for suggesting it'll be easy to accelerate revenue growth with some low-hanging sales & marketing.

(1) If growth was easy, then the seller would have done it even if it's a lifestyle business.

(2) New growth, where there currently is none, is especially difficult, as you're looking to change the status quo.

Also worth asking why a seller wants to divest a lifestyle business (limited existing time commitment) with low-hanging fruits (significant upside potential).

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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