Business Articles

M&A Proprietary Deal Flow

Most Business Professionals are going to find creating Proprietary Deal Flow on their own without help ridiculously difficult. But if you have a good attitude and use your own professional networks. You may just have a fighting chance. How does a entrepreneur become known as someone that will look at your deal? It just kind of develops on it’s own and happens. Here is a story how I was approached by a Veteran Brother to look at a deal.

How can a Entrepreneur create Proprietary Deal Flow?

If your running a Search Fund, or if your a accomplished Investment Banker, or even Hedge Fund manger creating streams of Proprietary Deal Flow is no easy task. Here’s some fundamentals that will help you along in your search. Let’s get busy.

Some Entrepreneurs, VC, and Private Equity Fund Managers are new school. But most are still using the Old School Deal Flow opportunities. Or better put! Business Partners of a certain wealth level, more likely known as “The good Ole Boy’s Network.” Watch this insightful honest insight form Entrepreneur Naval Ravikant. Oh! Click to read his Almanck Book.

Is Proprietary Deal Flow dead as Naval shares? That depends on who you ask.

First we must list the different way’s many Entrepreneurs, VC’s, Private Equity, and other Investors access Deal Flow Opportunities. And the truth is this. It comes down to your track record, credibility, who you know, and people you currently do business with.

  • Who do you know?
  • Angel Investors?
  • Professionals in your Industry or Space?
  • Successful Entrepreneurs & Other Business Personalities?
  • The Good Ole Boy’s models as I like to say?

All great questions of who? Now what actual tangible useful advice can I share with you to begin building that network of Deal Flowing opportunities? This is where it pay’s to be a shrewd networker and belong to certain communities. Truth is I am always strategically looking to develop my network and deal flow opportunities. I must share this particular post will be about being a member of a group that is across the world. Yes I do belong to a few networks that involve groups of men that have served our Country in the Elite Special Operations community. Its a fantastic community to be involved with. Their is always someone who served in Uniform that ended up being a Professional in business somewhere. This community Is packed full of professionals that are great to know!

For purposes to share how opportunities happen. I would like to share with you this short story. A good friend and Veteran Brother who is a newly retired Army Special Forces Green Beret. Let’s call him John.

John is undoubtedly a professionally trained Bad Ass Guerrilla who served in Afghanistan and also has a Business MBA. He was up until recently the Chief Operations and Development Officer for a Harley Davidson Product company. This business is growing because of who John is and the groups of men he knows and activities he does on the weekends. This company manufactures a part for all new Factory Harley Davidson Motorcycles.

Listen to this. We follow each other on Instagram and have known each other for sometime prviously in the SOF community. I ended up doing some professional work with a former Team Mate of Johns. And we got to know each other online over time and through friends of friends. John had messaged me he was moving on in life from his position at his company. And the team who built this company wanted to sell. Interestingly this Business has a impressive Hockey Stick sales profile. And is growing literally quarterly. Annual Revenue was right at about 20 million dollars. The owners were motivated to sell. Since they are ready to retire and move on with life.

If you like this Post Check out my previous post on if you should Trust Business Brokers?

At the end of this opportunity it was fast turning into a Broker pursuit. And my mentor and business partner was persuasive enough to share with me we needed to stick with our own industry and strategy. But it was neat to look at this company.

With this story complete you can see having a personal network or belonging to a member only club that expands across the world is ideal for deal flow opportunities. It seems I should probably go into more strategies and developing business relationships to expand on this a very wide subject. I do hope you received something from this moderately long post. Because in the end it’s gonna most likely be people who know you and your business reputation that will approach you. And they will come from all walks in life as Naval Ravikant shares in the Video.

Thanks for Reading & Godspeed!

JS

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Business Articles

Search Funds

Entrepreneurs Are You Ready To See If Your Worth Your Salt? This guide explains more about Search Funds. If your needing structure. Search Funds may be a unconventional option for you.

Let us define Search Funds.

How many search funds are there? Irving Grousbeck, a professor at Stanford University’s Graduate School of Business, who originated the concept in 1984 while lecturing at Harvard Business School. Since then, it is estimated that 627 traditional funds have been or are currently being formed, with 198 operating currently.

Good day to all the visitors who showed up to read the Investment Fund advice. I genuinely would like to Thank you. Your here probably because you have an interest in Search Funds for Entrepreneurship through Acquisitions. Let’s get down to Brass Tax and open up with the two types of Search Funds I am privy to.

  • Self-Funded Search Funds
  • Investment Fund Backed Search Funds
  • Private Equity Funded Search Fund
  • Private Individual Funded Search Fund

Both are polar opposites from each other. And honestly I have to be straight with you here. If your serious and backed by a well funded Private Equity Firm? I do not feel you will have to work as hard as a Scrappy Entrepreneur who is self funded. That’s my opinion. However I guess the old stand by should be suggested. Warning “RESULTS MAY VARY.” I hope you get chuckle. You are out searching or are about to begin your search for a Company to approach and acquire? In all seriousness there seems to be some assumptions that I am going to address to set up your expectations.

Self Funded Search Fund

I feel the well funded entrepreneur should out perform the scrappy entrepreneur. Because the scrappy entrepreneur who is not as well funded may have to work harder or longer. But! Just because an Entrepreneur is well funded? Doesn’t prove he or she will out perform the poorly funded or scrappy entrepreneur. There are to many variables at play in this analysis.

Self Funded Entrepreneurs are exactly just that. They’re using their own money to cover costs of being on the road and traveling while searching. Usually these entrepreneurs are incredibly resourceful using self taught street smarts and pure hustle to achieve their goals. Uncertainty and being uncomfortable are normal operating environments.

Traditional Search Funds

What is a traditional Search Fund? These are funds that are funded by wealthy private individuals or investment funds including Private Equity Partners. If we really consider the roots of Search Funds. The model originated at Stanford Graduate School of Business in California. A few Stanford Alums raised some funds to search for an Acquisition.

In conclusion wether your funded by a wealthy Private Individual or secured funding from a Private Equity Firm. Search Funds are defined differently by different experts. As I had mentioned earlier “Results may vary.” There are no metrics to discern which entrepreneur will be successful. However from the research I have completed. If you follow a Search Fund Model 60% of Entrepreneurs who adhere to the model of a Search Fund are likely to be successful.

Thank you for stopping by and reading. Please do drop us your email address for new Blog posts as I write them. Because I will be writing a ton more about Search Funds as my own Business model evolves.

Please feel free to share on Linkedin or any groups. And If I missed something in writing this? Please feel free to send me a email and I will consider your information you provide to add to this guide.

Happy Hunting to all Entrepreneurs using a Search Fund model.

JS

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