🧐 What I Learned Last Week 6.16.23
Curating the best M&A, SMB, and EtA-related content since 2020.
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📰 Articles
Bridging the Valuation Gap
The article from Middle Market Growth discusses the trend of falling valuations in private equity buyouts due to market factors such as rising interest rates and limited access to debt capital. This has led to the implementation of creative deal structures like structured equity, seller notes, and earnouts to bridge the valuation gap between buyers and sellers. Private equity investors are currently focusing more on add-on acquisitions due to their easier closure and growth potential in a lower valuation environment. Dividend recaps have lost popularity due to increased costs of capital and scrutiny from lenders. The article suggests an expected rise in refinancings and potential restructurings in the future.
🧵 Best of Twitter
Want to minimize taxes? Invest in solar projects…
I like seeing more conversations around franchises…
A quick primer on analyzing a P&L…
Great tip on reducing bank fees…
Targeting biz brokers is the quickest path to an acquisition…
Really cool indicator for those in e-commerce space…
Even profitable businesses can go bankrupt if they're capital-intensive…
A good laugh on a Friday…
🤔 Thoughts, Events, Other
Austin Meetup
Conferences
Southeast ETA Conference (Sept 8-9) - Duke University in Durham, NC.
HoldCo Conference (Sept 18-20) - Cleveland, Ohio.
Capital Camp (May 21-24) - Columbia, MO
⚒️ Tools & Resources
I want to share some tools & resources that I have found helpful. Please note that some of these are paid sponsors of the newsletter.
DueDilio - #1 marketplace to hire highly vetted M&A due diligence service providers. Your source for finance, legal, tech, and other key areas of due diligence. Submit your project, review proposals, and hire.
PrivSource - PrivSource helps you source deals and connect with transaction partners without ever paying a success fee.
X5 Deals - Proprietary deal sourcing. They do the outreach and send you relevant, actionable deals directly into your inbox.
Rejigg - Platform that connects searchers/investors directly with owners of off-market software businesses ($500k - $15m revenue) considering exits. All deals are sourced by the Rejigg team, ~5 added per week.
Scott Oldford - If you're interested in gaining insight into the process of building, scaling, acquiring, and selling online businesses, Scott Oldford can help.
BizNexus - Marketplace + off-market origination in one platform. The marketplace averages about 10k active listings & pre-CIM opportunities, and the off-market origination focuses on data & multi-channel.
Deal Flow Scout - Peer-to-peer deal flow exchange. Free, open, transparent.
Deal Sourcing Guide - A directory I put together of online marketplaces, brokers, DFY deal flow, and more.
🚀 Interested in partnering or advertising with us? Get in touch here.
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