Take Five #138: PE investor discusses some CIM do’s and don’ts, and more
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Take Five #138: PE investor discusses some CIM do’s and don’ts, and more
1. Authenticity is key to a successful search
2. Acquiring Minds Interview: “How to Buy Franchise Businesses, Then Sell to PE”
But Alicia, without the benefit of the books or the pods or the general awareness of entrepreneurship through acquisition, arrived on her own at the insight that we celebrate on this podcast:
That buying an existing business — an existing franchise business in her case — would be better than starting from scratch.
The first half of today's interview is Alicia's story of acquiring a portfolio of Sylvan locations — Sylvan is in the education & tutoring category — and how she improved, grew, and sold that portfolio a few years later.
The second half is a distillation of what Alicia has learned since.
Post-exit, Alicia remained in the franchising space, but with a focus on private equity.
Listen to the Acquiring Minds episode here.
3. Five ETA models explored, plus ideal business characteristics to target during the search process
ETA is the beneficiary of a major demographic trend in the United States: more than 40% of all small businesses are owned by baby boomers. These baby boomer business owners are in need of management succession and ownership transition.
And, a recent survey by Wilmington Trust suggests that nearly 60% of boomers do not have a succession plan.
We’ve also written at greater length on baby boomers and succession planning.
Enter ETA.
ETA searches tend to focus on small businesses because access to investment capital is often a meaningful constraint for ETA candidates.
This influences the size and type of business targeted for acquisition.
But, with more than 30 million small businesses in America, how does an ETA searcher focus their limited time and resources?
Find the rest of Hadley Capital’s article here.
4. PE investor discusses some CIM do’s and don’ts
5. Searchers should consider adding a “network bio” page to their website highlighting some of their advisers
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