NiklasJames.com

Pay up for a strong mgmt team

If you don't pay up for a strong management team, then the buyer of your business will have to do so, which will discount the valuation (= much more expensive than a strong manager).

Indeed, this is the main reason founder-led businesses are trading at discounts compared to professionalized businesses: lack of institutional-grade management.

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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