Introduction In the Golden Rule of Private Equity Investing , we discussed how building and maintaining a sufficient pipeline was critical in exercising investment discipline. TL;DR - it's much harder to exercise discipline when there are limited investment opportunities. What is a deal sourcing process? Deal sourcing, or deal origination, is the process identifying and evaluating potential investment opportunities . It 's the crucial first step in the investment process. W

Intro This is a question that I get a lot. Especially in the context of a buyer looking to make an offer or bridge a valuation gap with a seller. While there is no right answer, there are best practices. I'll start with some common options that usually don't work. What (Usually) Doesn't Work Relying solely on market multiples: "let's pay the same multiple someone else did" While this data serves a purpose, it often requires adjustment (ie. to account for size differences) and

As discussed in The Golden Rule of Private Equity Investing , a well defined due diligence process is necessary to ensure successful investment outcomes. Due diligence serves as a critical step in the overall investment process, which we discussed in Formulating an Effective Investment Framework . What is due diligence? A due diligence process is a structured and comprehensive investigation or review conducted before finalizing a business transaction, such as an investment, m

As discussed in The Golden Rule of Private Equity Investing , establishing an investment framework is a critical first step in the investment process. Without a clearly established framework, its challenging to objectively evalu ate investment prospects in a consistent manner . What is an investment framework? An investment framework is a structured and systematic approach that guides an investor through the process of evaluating, executing, and managing investments. It estab

What is the key to success in private company investments? Although there are various ways to answer this complex question (including...