Family Offices always want to "collaborate" on deal flow
"We would love to collaborate on deals with you," says every Family Office in the world. Of course
M&A
289 posts
Four Owners, Four Jobs, No Split Focus
HKW's CEO, Ted H. Kramer, splits the firm's work into four jobs instead of two. HKW
Country club & Racecar
An independent sponsor was able to move a seller from "NO" to "Yes!" on an 8-
Deal flow by industry
Screenshot of the 2025 breakdown of deal flow by industry at Minds Capital. Everyone knows valuations, revenue quality, capex intensity,
"Everyone wants a proprietary deal, until they get one."
"Everyone wants a proprietary deal, until they get one." - Fatigued independent sponsor who's dealing with a
Losing a deal to a strategic
Losing a deal under LOI when a strategic buyer swoops in with $7m more = brutal. Time kills all deals, exhibit
VCs becoming PE (growth equity)
VC/Tech boomed through the 2010s and COVID, but there's been a sharp decline in the past 5
$10m EBITDA platform w/ no equity
$10m EBITDA platform w/ no equity (real-life case study): The independent sponsor had 3 LOIs, with $4m, $4m, and
Add-on vs. Bolt-on vs. Tuck-in
Add-on vs. Bolt-on vs. Tuck-in The words are used interchangeably, but there are nuances. If I missed
Arrogant NDA
"Please return the signed NDA (no revisions please - we're juggling numerous potential investors and need to be
GP recap to >50% control
A GP (searcher/sponsor) can recap their way to majority control (>50%) of a successful deal, even with $0
Independent sponsor incentives are cleaner
Independent sponsor incentives are cleaner, more sustainable, and more aligned than those of traditional searchers. A traditional search deal that&
Realtors in LMM PE
Realtors would be great in lower-middle market PE. I'm surprised I don't see more (any)
3 X-Factors of a Deal
The 3 x-factors that get me especially excited about an investment: (1) Low entry. It's hard to
Beware of deal fog
Beware of deal fog: Stay vigilant during the DD. The M&A process is designed to excite you and
Deal-by-deal rollups
There's been an uptick in the # of rollups pitched over the last 6 months. However, the deal-by-
Cost of a full deal team
$1.0-1.5m per year is the cost of a fully staffed deal team at a PE fund, excluding
New vertical: understand customers
When researching new verticals/industries, it's critical to understand the customer. • How does the customer make the buying
The importance of large-caps
"99% of US businesses employ 50% of the employees and generate 35% of the revenue." This line was
How to structure carry
How to structure carried interest as an independent sponsor: Standard PE is 20% after a pref (8-10%). Most sponsors
Minority deals as an independent sponsor
Minority deals as an independent sponsors: where you acquire <50% of the company, leaving the founder with majority ownership.
Differentiate w/ 1yo baby at meetings
Differentiate by bringing your 1yo baby to meetings with sellers. "It's very disarming, and it immediately makes
Defining an industry's inning
PE investors like to acquire companies in industries that are fragmented, growing, and not yet saturated with capital. But how
Acquire HoldCo Infrastructure
Large-cap PE funds build massive centralized "ops" teams to support the portfolio. Independent sponsors can't
