Inbound leads
The holy grail for a dealmaker and any other business is inbound leads. Keys for inbound leads: • Attractive value proposition
M&A
243 posts
Waiting 7 Years
I often chat with prospective searchers who want to start their journey. Recently I talked to someone who had called
Right Buyer, Right Time
It’s not just about being the right buyer. It also has to be the right time. It’s the
Private credit before it was "cool"
“We’ve been doing private credit since before it was cool to call it that." - Hong Kong-based family
Self-Funded Search vs. Independent Sponsors
At Minds Capital we invest equity in deals from both searchers and independent sponsors. Below is an overview of how
"Step-up equity"
"Step-up equity." Self-funded searchers use this term erroneously. They claim that if you inject 100% of the equity,
Yearly Headwinds
Recent history of operational headwinds: 2020: COVID 2021: Supply chain 2022: Inflation 2023: Labor shortage Still trying to figure out
Always disclose yellow flags ⚠️
When creating an investment memo, you might be tempted to think that not discussing risks (yellow flags) makes for a
🚩⚠️✅ 3 DD Categories
When evaluating a deal, I categorize my findings in 3: 🚩 Red flags: Deal killers. ⚠️ Yellow flags: Every deal has them,
SaaS diligence
How to value SaaS companies, from Signal Hill in 2016. We're diligencing a SaaS deal right now, and
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
Seasonality vs. Cyclicality
People conflate seasonality and cyclicality. They’re different and unrelated. Examples of seasonal businesses: Christmas trees, fireworks, ski slopes, air
Rule of 40
Rule of 40 = Healthy & Sustainable Business = Revenue Growth (%) + EBITDA margin (%) = 40% or more Applicable in SaaS
Negotiating NWC
Negotiating working capital - inventory, receivables, and payables - is often the most contentious part of a deal. Here is
Bain 2024 PE Report
From Bain’s 2024 Private Equity Report webinar: • 2023: Fundraising, exits, dealmaking, and capital velocity were strongly affected by rapidly
Don't anchor
According to my professor at b-school, the first person to throw out a number loses. Not in my experience. A
Conviction + Hustle
“But how do you get deals under LOI when you don’t have committed capital?” This is the most common
Financial Times: Deal-by-deal PE
Deal-by-deal private equity is in the wind. The space is maturing in the US, but it is in the early
Diligence vs. Fundraising
There is an inevitable conflict of interest between (1) diligencing & negotiating a deal and (2) raising capital for it.
Google Doc for Q&A w/ Seller
When dealing with sellers, create a Google Doc with a Q&A (your questions & their answers). I use
HR in 4 parts
HR consists of 4 parts: Administration, Recruiting, Training, Retention. From left to right, tactical/reactive to strategic/proactive. Sadly, most
Get in upfront
Major recaps aside - it’s just about impossible to buy into an SMB. Every now and then I’ll
Acquiring Minds (June 2023)
I met Will Smith, who later became my business partner at Minds Capital, when I joined him on his podcast,
Kids blow up deals
Kids can blow up deals. I’ve been at the altar before, only to experience that the kid won’t
