M&A

Working Capital for Deals

Examples, different cases

Solutions

LMM M&A - Selling business, liability around reps & warranties, indemnification.
$20mm and under - not common.

PE moving from LPs to bring inhouse on investments to be able to draw capital whenever they want - Blackstone / Berkshire with access off the balance sheet on permanent capital.

Interesting that as PE has been open to 401k individual investors, it has also become more opaque as governance will typically lack without the intermediary relationship of GP/LPs.

New Deal Checklist

Setting values/metrics/criteria for deals
Ranking/Priorities
Sourcing

Podcast episode -

Building a Permanent HoldCo, microPE at macro

Long term hold in the Berkshire model

Using all equity, primarily
People at the forefront (3 F’s - Faith included)

SMB owners sharing deal flow, questions and concerns within the broader acquisition and operating spaces.

Sourcing Debt / Equity

Fundraising

Acquisitions, primarily digital or ecommerce

Focusing on Quality of Earnings and diligence services

Michael Girdley on HoldCo’s - building, designing, types, starting ones, and examples

Decada Group - Utah Holdco (stumbled onto it from Michael Girdley’s newsletter)
Community-based holdings, acquisitions and growth around building forever