A lot of people asked me what inspired my PE Hustle tweet...
There are many stories, but this one is my favorite:
In 2013, I spent 6 months doing a deal with a PE fund.
We spent MONTHS in meetings.
They asked us to FLY TO THEM multiple times and vice versa.
There are many stories, but this one is my favorite:
In 2013, I spent 6 months doing a deal with a PE fund.
We spent MONTHS in meetings.
They asked us to FLY TO THEM multiple times and vice versa.
We introduced them to our ENTIRE MANAGEMENT TEAM and spooked them.
We went through MONTHS OF DILIGENCE.
I felt like I was going to get an ULCER, I was so stressed.
Finally, 6 mo in, we were at the finish line...
I was mentally and physically exhausted, but it was done...
We went through MONTHS OF DILIGENCE.
I felt like I was going to get an ULCER, I was so stressed.
Finally, 6 mo in, we were at the finish line...
I was mentally and physically exhausted, but it was done...
I spent the afternoon in my lawyers office, signing a phone book worth of
legal documents.
The Holy Grail: the purchase and sale. The legally binding document whereby you actually agree to sell your company.
legal documents.
The Holy Grail: the purchase and sale. The legally binding document whereby you actually agree to sell your company.
We celebrated. We were rich!
But something odd happened:
The wire never came through.
None of the partners would return our calls.
Technically, they owned our business, but the money never came through?
But something odd happened:
The wire never came through.
None of the partners would return our calls.
Technically, they owned our business, but the money never came through?
...It turns out these guys hadn’t been able to close their fund.
We found out weeks later that they had been desperately negotiating with LPs to get the deal closed.
It was all a mirage.
The whole time, they had told us they were good to go and had $XXX million raised.
We found out weeks later that they had been desperately negotiating with LPs to get the deal closed.
It was all a mirage.
The whole time, they had told us they were good to go and had $XXX million raised.
$100k in legal fees. Gone.
Management team. Freaked out.
MONTHS of time burnt.
That’s my worst story, it’s not the only one...
Management team. Freaked out.
MONTHS of time burnt.
That’s my worst story, it’s not the only one...
And it’s sadly not that uncommon... I just heard two similar stories last month.
Over the past 10 years, we’ve lost LITERAL YEARS of productivity engaging with PE firms and tire kicking corp dev teams.
The process has to change: medium.com/@awilkinson/th…
Over the past 10 years, we’ve lost LITERAL YEARS of productivity engaging with PE firms and tire kicking corp dev teams.
The process has to change: medium.com/@awilkinson/th…
