338(h)(10) tax selection
For tax efficiency, sellers want a stock sale (capital gains tax rate, clean legal transfer) and buyers want an asset
2026
78 posts
Exit waterfall
From the headline price to the actual carry: here is the looong cascade of deductions and LP hurdles that must
Winter Olympics 2026
The Olympics were really fun, especially for us Norwegians! 18 golds, but really 19 when you include the giant slalom
Narrow independent sponsor buy box
Many believe that independent sponsors acquire whatever they can get under LOI, and that the flexibility of the model enables
Independent Sponsor, Should They Chair the Board?
Should the Independent Sponsor always be the Chair of the Board? Yes, it sounds nice, you control the narrative, and
Selling to an Independent Sponsor
Aaron Stahl recently sold his company to an independent sponsor. Here's why. Why he sold: • Eggs-in-one
Geographical multiple arbitrage
An interesting arbitrage: Buy a non-US company, move it to the US, and exit as a US company (higher
Seasonality of M&A
Seasonality of lower-middle market M&A (USA): Deal activity reflects people's personal calendars. Almost nobody works
PE vs. Franchisees
Didn't PE despise franchisees? I recollect 10yrs ago that nobody wanted to touch franchisees (no autonomy, top-line
CEO threatened to blow up deal
$112m exit, hugely successful deal: I was just chatting with one of the board members. As the big sale got
Inbound Dealflow = Holy Grail
Deal flow is the most important thing when you're a dealmaker. Getting inbounds is the holy grail. Generating
Bullish on US equities (Feb 2026)
As a newly minted countryman I am bullish about US equities as we launch our 2nd fund: • The US is
Send a test wire
Send a test wire. If you're wiring a significant sum for an investment or distribution, send $5.00
Always explain stock options
Stock options. Most SMB business owners or employees lack a college degree in financial instruments, so assume they know nothing
EQ is the most important trait
Soft skills are the most important for an independent sponsor, according to Kevin Wong at Lang Partners, a Dallas-based
"You never keep 100% of the EBITDA that you buy."
Alan and Dana bluntly state that you never keep 100% of the EBITDA that you buy. Execution always leaks value.
Family Offices + Independent Sponsors = Strong Match
James warns that when 1 LP represents 80-90% of the capital in a deal, the sponsor is no longer
Geography is no longer an edge or hidden opportunity
A former attorney, Mike Healy founded Gardner Standard in 2010. His initial focus was on overlooked geographies, such as western
Independent sponsors are disciplined on valuation
The latest Axial Independent Sponsor Report shows strong pricing discipline, with the vast majority of deals completed below 7x EBITDA,
Good legal hygiene
If you're in a legally sensitive situation: limit written communication. That's my # 1 advice for legal
Do a sell-side QoE when you exit
Do a sell-side QoE when you exit. Benefits: • Higher valuation (see chart below from GF Data). • You can include
Build board = Build value
The best way to add value in the straddle period between signing the LOI and closing the deal: build a
US Citizenship
I am officially a US citizen! The Naturalization Ceremony was a memorable & meaningful occasion; Judge Natalie Adams and the
19,000 PE firms; you need to stand out
There are 19,000 private equity firms in America, all trying to buy businesses. I cannot overstate the value &
