Ping pong duel at SMB Work
Ping pong duel vs. Sam Rosati at SMB Work in Tampa. They do an amazing job hosting independent sponsors and
Schmooze the sell-side banker
How to schmooze the sell-side banker: (Cue: bankers want maximum commission with the highest possible certainty of close.) • Articulate differentiation
Sell-side banker isn't fundraising counsel
No, the banker representing your seller should not be your fundraising counsel. The lack of committed capital is the biggest
Efficient NDA
Amazingly efficient NDA-to-materials process: (1) Sponsor sent me a Google Form, asking for my name, entity, etc. (2) I instantly
Sell now vs. Hold longer
2 years in, a strategic offers 2x MOIC and 41% IRR. Do you sell? Yes, said Sarkaw Aziz, who exited
CEO should earn more than the Independent Sponsor
Sir Alex Ferguson, former manager of Manchester United, had a clause inserted into his contract that stipulated no player should
Please roll the closing fee
Most independent sponsors (GPs) roll their entire closing fee (1-2% of EV) into the deal, and often they'll
"Bumping" into 50% of deals
After 12 platforms and 4 exits I was surprised to hear that Rick Apple just “bumps into” half of their
The Rise of Family Offices
The rise of Family Offices is an enabler of entrepreneurial private equity: (i) Compared to institutionals, FOs have flexible mandates
Monster IS deal raised €350-400m of debt & equity
Independent sponsor deals aren't confined to the lower-middle market and <$10m EBITDA. This monster deal raised €350-400m
Advisory board for accountability
An advisory board is a great accountability partner. Advisors don’t need a formal arrangement or hefty compensation. Weekly emails,
VC + LBO = IS deal
Zack Miller and his high school friend Johnny Lieberman combined their distinct backgrounds to launch Worklyn Partners, a dual platform
Initial trajectory define the investment
The first 6-18 months often define the trajectory of a PE investment. If successful, with stability & retention, the initial
15-year time horizons
For a PE investment, you need a positive 15-year time horizon for the target company: 0-5: You own it. 5-10:
Searcher recapping SBA7a loan
"My capital structure is starting to get pretty complicated…" - Searcher after 3 years and 2 add-on acquisitions
Independent Sponsor Bingo
Independent sponsors often pitch themselves as “different." But their talking points are often the same. If you're
"Very bullish" on US equities
Why I am "very bullish" on US equities: • The new tax bill incentivizes capex spend by accelerating depreciation
Seller notes can be renegotiated, after the fact
Seller notes can be renegotiated - after the fact. Last year we had a $2.2m outstanding seller note that
Ep24: 24 Add-Ons in 24 Months
Episode 24: 24 Add-Ons in 24 Months Clever way to start: Luis Reyes hired an analyst to research industries and
"I would never invest in a friend"
“I would never invest in a friend” must be one of the dumbest things I have ever heard. I get
Earnout Poetry
Earn-outs can be contingent on improved performance (growth) or stable performance (don’t decline). Earn-outs can be based on overall
When independent sponsors break up 💔
The flexibility of the deal-by-deal model also manifests in break-ups. 💔 Traditional partnerships tie up equity, control, roles, and obligations in
SBICs & Warrants
SBICs & Warrants: SBICs usually invest 10-25% of their funds as equity alongside their core product which is mezz debt,
The cost of capital placement agents
Placement agents help independent sponsors raise debt and/or equity, but at a cost. If the deal is cheap, it
