Niklas on Athlete's Capital Podcast
Joining my friend Nikolay Dimitrov on his new podcast for professional athletes going into business & investing. Nikolay used to
Hi, Niklas here 🙂📝
This is my journey as an independent sponsor & equity investor.
I publish tactical insights for deal-by-deal private equity.
Subscribe for my short-form content in your inbox (~3x/wk).
I publish tactical insights for deal-by-deal private equity.
Subscribe for my short-form content in your inbox (~3x/wk).
Apologies for getting married
Isn't there a meme about this being the core difference between America and Europe? I was quick to
Smart Business Dealmakers Conference (Tampa)
Smart Business Dealmakers Conference in Tampa Florida yesterday. Compliments to the host for great panels & keynote speaker. Niklas'
Beware of deal fog
Beware of deal fog: Stay vigilant during the DD. The M&A process is designed to excite you and
Deal-by-deal rollups
There's been an uptick in the # of rollups pitched over the last 6 months. However, the deal-by-deal PE
Cost of a full deal team
$1.0-1.5m per year is the cost of a fully staffed deal team at a PE fund, excluding carry
New vertical: understand customers
When researching new verticals/industries, it's critical to understand the customer. • How does the customer make the buying
The importance of large-caps
"99% of US businesses employ 50% of the employees and generate 35% of the revenue." This line was
How to structure carry
How to structure carried interest as an independent sponsor: Standard PE is 20% after a pref (8-10%). Most sponsors include
Minority deals as an independent sponsor
Minority deals as an independent sponsors: where you acquire <50% of the company, leaving the founder with majority ownership.
Differentiate w/ 1yo baby at meetings
Differentiate by bringing your 1yo baby to meetings with sellers. "It's very disarming, and it immediately makes
Defining an industry's inning
PE investors like to acquire companies in industries that are fragmented, growing, and not yet saturated with capital. But how
Acquire HoldCo Infrastructure
Large-cap PE funds build massive centralized "ops" teams to support the portfolio. Independent sponsors can't afford
Don't build for your acquirer
Some PE acquirers specialize on knowing their exit: "We know who will acquire this company, so let's
Seller's rollover equity, what's the sweetspot
The amount of rollover equity from the seller affects the pre-closing dynamics, transition risks, and continuity of operations. Almost all
First-time sponsor's experiences from the field
First-time sponsor's experiences from the field: "I spent a lot of time on a deal early on.
Cold calling for deal sourcing
Cold phone outreach = Differentiated deal sourcing Nobody does it = Opportunity Colin Stuart started his career in an outbound call center,
Finder's fee, what's market
Finder's fee ($), what's market: I've recently seen three versions: (1) Lehman formula is the
Singular KPIs
Tires per hour 🛞 That was the crucial KPI for Chandos Mahon at his waste management company. He attributes half of
Avoid 1st deal in rollup to be premium valuation
I don't love when the first LOI in a rollup thesis is at a premium valuation. "We&
Buy & Build = Faster exits?
Buy & Build = Faster exits? You might think a consolidation will require more time due to all the M&
Beware addbacks & adjustments
Eugene Polevoy claims there are incentives all-around to get a deal done, which inevitably leads to aggressive addbacks & adjustments
Too much debt chasing too few deals
"Dealflow is getting harder and harder," say several SBICs. Private credit (incl. SBIC) was all the rage in
Dealmakers are a special breed
It's brutally hard to close a deal, both at entry and exit. IYKYK. Congrats to all of you