Same Amount In Each Deal
At Minds Capital we invest the same amount of equity into each deal. Why? (1) It eliminates emotion. When evaluating
M&A
301 posts
Retiring vs. Entrepreneurial Sellers
When buying a business, your seller is either retiring or entrepreneurial. Below is a cheeky spin on the main differences
Seller w/ Cold Feet
If your seller is getting cold feet, they’re usually much colder than you think. 🥶 • Don’t wait and see.
Twitter = Biggest Ever Independent Sponsor Deal
Elon Musk's take-private acquisition of Twitter is the biggest independent sponsor deal of all time. Deal-by-
Where To Learn More About Search
“Where can I learn more about search?” • Read books. “Think Big, Buy Small” is my favorite. • Listen to podcasts. “Acquiring
Generalist Attorneys Within M&A
I light a candle for those who are dealing with generalist attorneys within M&A 🕯️ Seller: “My attorney has
Safeguards Against Fraud
No, I haven’t seen sponsors defrauding or scamming investors. But if it could happen at Theranos, FTX, etc., I’
Viral ad for Minds Capital
I'm attending the McGuireWoods Independent Sponsor Conference in Dallas this week (Oct 15-16), hosted by Jon Finger,
Numbness
Searcher after closing his first deal: “By the time my deal closed I was so numb by the process - the
Business Owner Talks
If a business owner is curious to talk, then you're halfway there. From there it is all about
Seeking Complexity
"We seek complexity. Otherwise it's too competitive." - Example of differentiated strategy with an independent sponsor who
Independent Sponsor Deal vs. US Presidency
If you've ever wondered about the similarities between an independent sponsor deal and the US Presidency.
All-Time High
If the most recent financial results of a target show all-time highs, it could be attributed to temporary factors
$300k Break Fee
"I negotiated a $300K break fee if they walk away before it closes." Break fees aren't
Day 1 Post-Closing
Day 1 after closing: • Spend time with your new team members (be visible, present, approachable). • Do not announce any operational
Announce on Monday
It's better to annonce a closing on a Monday than a Friday. Employees always worry how changes affect
Skin In The Game
Optics of skin in the game for independent sponsors: Good: rolls closing fee plus invests cash Bad: rolls closing fee
5 Keys for Independent Sponsors
5 things I love to see in independent sponsors as an investor at Minds Capital: 1. Niche experience (expertise, knowledge,
Fundraise Anatomy
This chart shows what a PE fundraise actually looks like. Minds Capital - which invests equity in acquisitions led by searchers
When Equity Is Oversubscribed
My $0.02 on what to do if your equity is over-subscribed: 1. Take the capital! More capital = Good.
Best Practices for Base Case PF
4 best practices of a credible base case pro forma: 1. Projected revenue growth = Historical growth 2. Flat profit margin
R&W Insurance
The seller’s attorney, who had no M&A expertise, wanted to ambiguize* the Reps & Warranties. Illustrative example:
Negative NWC
Many searchers overlook the value of negative working capital. Everyone is hyper-aware of capex-intensity, but net working capital
Thesis-driven vs. Generalist
Thesis-driven search: (1) Develop a vision (2) Find an acquisition target that fits the vision Generalist search: (1) Find
