Ep. 70 Inside the Mind of a Private Equity Investor
Built to Sell Radio · Hosted by John Warrillow, the creator of The Value Builder System™.
November 23, 201646m 39s
Audio is streamed directly from the publisher (traffic.libsyn.com) as published in their RSS feed. Play Podcasts does not host this file. Rights-holders can request removal through the copyright & takedown page.
Show Notes
Frank Cottle led an investor group to buy Hi-Mark Software for 10 times EBITDA. Cottle then sold a chunk for 15 times and ultimately sold his last tranche of equity for more than 16 times EBITDA to Lufthansa. In this interview, you'll get deep inside the mind of a private equity buyer and learn:
- three reasons acquisition deals fall apart.
- the difference between your reputation and your brand and which one acquires value most.
- the definition of "suicide by investor" and the dangers of getting into bed with a private equity group.
- how stock clawbacks can dilute your position to zero in the company you started.
- how a stock re-capitalization works.
- one key decision every entrepreneur must make in growing their company.
- why cross-selling as an investment thesis is flawed.