Presenting Purchase Agreement
When I deal with a business owner, this is how I roll out the legal purchase agreement: “We will send
M&A
261 posts
Ass-Sitting is Tax-Efficient
“Sitting on your ass is tax-efficient.” - Charlie Munger Long hold periods = tax-efficient If you own two consecutive investments making
BOI Filing Requirement
Happy Thanksgiving week to all, except the bureaucrats at FinCEN who mandated the filing of BOI (Beneficial Owner Information) reports
A+ Rejection Response
This is an A+ reply when a prospective investor has passed on your deal. (1) He replied. (2) He expressed
The Light Park Announcement
Let there be light! 🎄 Thrilled to announce the closing of The Light Park as an independent sponsor. The Light Park
Different Buyers From Seller's Perspective
Table: Different business buyers from a seller's perspective. Minds Capital invests equity into deals led by independent sponsors
Benefits of All-Equity
I've both closed and exited from deals that were all-equity. When to do all-equity: (1) Growth hinges on
Discount Seller's EBITDA by 10%
Discount the seller's reported EBITDA by 10%. If your deal still works with a discounted EBITDA, then it
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
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-deal private equity
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, Jeffrey
Numbness
Searcher after closing his first deal: “By the time my deal closed I was so numb by the process -
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
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 or
$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
