Selling to an Independent Sponsor
Aaron Stahl recently sold his company to an independent sponsor. Here's why. Why he sold: • Eggs-in-one basket: As
Sourcing
30 posts
Geographical multiple arbitrage
An interesting arbitrage: Buy a non-US company, move it to the US, and exit as a US company (higher valuations)
Seasonality of M&A
Seasonality of lower-middle market M&A (USA): Deal activity reflects people's personal calendars. Almost nobody works during
Inbound Dealflow = Holy Grail
Deal flow is the most important thing when you're a dealmaker. Getting inbounds is the holy grail. Generating
When losing a brokered process
If you lose a deal in a brokered process (i.e., somebody bid higher), stay in touch with the broker
Schmooze the sell-side banker
How to schmooze the sell-side banker: (Cue: bankers want maximum commission with the highest possible certainty of close.) • Articulate differentiation
"Bumping" into 50% of deals
After 12 platforms and 4 exits I was surprised to hear that Rick Apple just “bumps into” half of their
Ep24: 24 Add-Ons in 24 Months
Episode 24: 24 Add-Ons in 24 Months Clever way to start: Luis Reyes hired an analyst to research industries and
The Best Way To Start As An IS
The best way to start as an independent sponsor is when your (PE or FO) employer doesn't want
Bankers Can Enhance Your Value Prop
Use the sell-side banker to enhance the value proposition of your bid. Instead of circumventing the banker or downplaying your
2nd Tier Cities As Competitive Advantage
Most people in Milwaukee, Wisconsin, are probably not contemplating a career as an independent sponsor, and, if they do, they
Opportunity Outside USA
I'm fascinated by the opportunity at hand for independent sponsors outside the US: There’s definitely some deal-by-deal
How to Earn Trust With Sellers
Ideas of how to earn trust with sellers, investors, and other stakeholders: • Maximize the say-do ratio (do what you say,
Honing Deal Sourcing
Most independent sponsors view deal sourcing as the "necessary evil" which precedes real value creation. For them, deal
Questionable Seller Statements
A selection of seller statements that I would take with a grain of salt and double-click: “The seller isn’t
Acquiring Companies Where LMM PE Doesn't Exist
Former footballer Nikolay Dimitrov went from playing against Ronaldinho at FC Barcelona to negotiating with chain-smoking veterinarians in Eastern Europe.
Cold Outreach Step-By-Step
Doing cold outreach to business owners.
Annual Budget For Searching
Annual budget for searching: Rent: $0 (home office) CRM: <$2k (e.g., Sevanta, Pipedrive, Hubspot) Email augmentation: <$1k
Start with Capital or Deal?
"Should I start by finding capital or deals?" It's much easier to find capital than good
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
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.
Business Owner Talks
If a business owner is curious to talk, then you're halfway there. From there it is all about
Importance of Pipeline in Rollup
"How important is it to have identified targets when pitching a roll-up platform?" A sponsor recently asked me
