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
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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
US Citizenship
I am officially a US citizen! The Naturalization Ceremony was a memorable & meaningful occasion; Judge Natalie Adams and the
"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'
$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
Avoid $2m EBITDA deals
A $2m EBITDA deal is treacherous. At 5x, it's $10m EV. If you double EBITDA, which is a
Where you live affects how you think
Where you live affects how you think. New York: AUM, fees & commissions. Your friends work at funds, your rich
Ping pong duel at SMB Work
Ping pong duel vs. Sam Rosati at SMB Work in Tampa. They do an amazing job hosting independent sponsors and
Estimated deal expenses for independent sponsors
Deal expenses: • Legal: $100-300k • QoE: $20-70k • Misc.: <$100k • R&W insurance: ~1% (uncommon) • Closing fee: 1-2% of EV
The Big Beautiful Bill
The Big Beautiful Bill just passed. The two biggest and most beautiful takeaways for private equity: 1. Carried interest = No
PE Funds Aren't More Likely To Close
A seller may think a PE fund with committed capital is more likely to close than an IS. I disagree.
Zone-Skipping EBITDA
Zone-skipping is a foundational principle in lower-middle market PE. Scaling EBITDA into the next zone unlocks higher valuation multiples by
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
5 Pillars of Deal Structure
The 5 Pillars of Deal Structure: 1. Cash at close. Inversely correlated with valuation (the less cash the seller requires
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
Generalist Attorneys Within M&A
I light a candle for those who are dealing with generalist attorneys within M&A 🕯️ Seller: “My attorney has
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
Announce on Monday
It's better to annonce a closing on a Monday than a Friday. Employees always worry how changes affect
5.8x MOIC
5.8x MOIC. In 2019 I invested in an all-equity 100% acquisition of a moderately-growing target. The entry multiple was
Wives kill deals
2-3 years ago I lost a deal because the family didn't think I was paying enough. I had
Independent Sponsors vs. Self-Funded Searchers
Independent sponsors vs. searchers: I recently posted about the differences, and here's an overview of the similarities 😄 Congrats
To the porn stars in my network
To the porn stars in my network: I recently met a tax strategist for adult movie actors. I'm
