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
M&A
261 posts
Inbound Dealflow = Holy Grail
Deal flow is the most important thing when you're a dealmaker. Getting inbounds is the holy grail. Generating
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 Family
"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 in
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 it
Build board = Build value
The best way to add value in the straddle period between signing the LOI and closing the deal: build a
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 &
"Our buyer has spent $2.5m on DD so far."
"Our buyer has spent $2.5m on DD so far." If you're exiting, the buyer'
Be tactful in diligence
The “buyers have every right to dig deep” statement rings true, but lacks nuance. On large deals, institutional investors will
How to hire A+ players
How do you hire true A+ players, and not settle for “good enough”? When hiring, it’s common to fall
$50m Rollup vs. $2.5m LBO
Just met a first-time searcher with a $2.5m deal under LOI at below 4x. Option A: The Standard LMM
Raise your prices, now
Happy New Year! 🎆 Start 2026 by raising your prices. Raising prices is the fastest way to increase your profits. Yet
When your partner dies
Kearney’s boss and senior partner died suddenly in an accident in 2018. At the time, the firm owned 4
Ensuring 5-year exit timeframe
How can LPs be sure that independent sponsors will actually exit in ~5 years? 1) debt maturity. Most deals have
Seller suddenly changing it all
After 5 months under LOI, the seller suddenly asked my friend to secure the seller note with a PG. The
Board meeting scheduling
Board meeting scheduling: best practices. • Schedule at least 6 months in advance. People feel really important when you send them
Avoid $2m EBITDA deals
A $2m EBITDA deal is treacherous. At 5x, it's $10m EV. If you double EBITDA, which is a
Rollup without additional equity
UK-based Sam Turner overcame a challenged first deal by pivoting the business model and eventually built a thriving facilities maintenance
