🚩⚠️✅ 3 DD Categories
When evaluating a deal, I categorize my findings in 3: 🚩 Red flags: Deal killers. ⚠️ Yellow flags: Every deal has them,
2024
117 posts
SaaS diligence
How to value SaaS companies, from Signal Hill in 2016. We're diligencing a SaaS deal right now, and
Underwhelming macro data
Record-high asset prices should be accompanied by strong economic data and trends. However, the data continues to underwhelm: • April job
PG vs. Skin in the game
Yes, a personal guarantee qualifies as “skin in the game.” It will keep the searcher engaged. However, “skin in the
MVP 2024 = American Trifecta
The MVP of the global economy so far in 2024 is the American trifecta (consumer, worker, and investor). The American
Visiting Eco Plumbers
Fantastic day in Columbus where my friend, Michael Barnhart, and the absolutely-best-in-class team at Eco Plumbers, Electricians, and HVAC Technicians
Seasonality vs. Cyclicality
People conflate seasonality and cyclicality. They’re different and unrelated. Examples of seasonal businesses: Christmas trees, fireworks, ski slopes, air
$61 aid package to Ukraine
This weekend the US Congress approved a $61B aid package for Ukraine. It isn't hard to understand voices
Rule of 40
Rule of 40 = Healthy & Sustainable Business = Revenue Growth (%) + EBITDA margin (%) = 40% or more Applicable in SaaS
China headwinds
China, recently the world’s economic engine, faces headwinds directly linked to trust-erosive political missteps: #1: In the absence of
The Masters 2024
My first trip to Augusta for the Masters, where I saw my old nextdoor neighbor Scottie Scheffler and “talked hoops”
Negotiating NWC
Negotiating working capital - inventory, receivables, and payables - is often the most contentious part of a deal. Here is
US jobs in 2024
US job numbers continue to surprise, with last week’s report showing 303,000 new jobs in March. Incumbent politicians
4.1m people turning 65
A record 4.1 million people are set to celebrate their 65th birthday in the US in 2024. Within that
Bad news = Good news
A podcast I listen to suggested that “both good news and bad news are positive for the market these days.
8 Graduates from Tech Track
8 apprentices successfully graduated from the Tech Track program at Service Star Brands this week. We celebrated with a company-wide
Keep the ball in your court
When dealing with business owners, don’t leave the ball in their court. They’re busy and many suck at
Bain 2024 PE Report
From Bain’s 2024 Private Equity Report webinar: • 2023: Fundraising, exits, dealmaking, and capital velocity were strongly affected by rapidly
5.30% savings rate
So 2024: one of my WhatsApp group chats is ablaze with discussions on which bank offers the best rates. I’
Don't anchor
According to my professor at b-school, the first person to throw out a number loses. Not in my experience. A
Launching Minds Capital
(March 19, 2024) Here we go! Officially launching Minds Capital, an equity fund investing in sponsor-/searcher-led acquisitions. Our goal
UpSmith Podcast (May 2023)
Wyatt Smith is an authority on workforce productivity. We need people of his extraordinary caliber to solve one of America’
Conviction + Hustle
“But how do you get deals under LOI when you don’t have committed capital?” This is the most common
"Underemployment"
52% of recent four-year graduates are "underemployed" (vs. the normal rate is ~1/3). Underemployed is when "
