My extremely definitive power rankings of M&A intermediaries based on typical process:

Rev, SDE, Asking Price -> NDA -> Call with Seller = Vested Business Broker (sorry not sorry)

Rev, SDE, Asking Price -> NDA -> Tax Returns = Tier 3 Broker
Rev, SDE, Asking Price -> NDA -> SDE Recon (20% lower than advertised) = Tier 2c Broker

Rev, SDE, Asking Price -> NDA -> SDE Recon (as advertised) = Tier 2b Broker

Teaser w/biz summary -> NDA -> SDE Recon & a bunch of random files = Tier 2a Broker
Teaser -> NDA -> CIM = Tier 1b Broker

Teaser -> NDA -> CIM & 3 year P&Ls = Tier 1a Broker

Teaser -> NDA -> CIM & Dataroom = INVESTMENT BANKER

Lastly, if you only connect sellers with the one perfect buyer, you loop back around to broker = POWER BROKER

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More from @guessworkinvest

15 Jun 20
THREAD: My current best PA idea with 8-10+ year horizon is Zillow Group $Z / $ZG in the $55 context

You own two value streams:
1) Core online marketplace - $30/share
2) $Z eating the RE transaction pie over time - $30/share from Homes + free option on other services

Online Marketplace:
This is a 2-sided network at scale that is near-impossible to duplicate once established. Buyers and sellers are extremely fragmented and the existence of Zillow has meaningfully improved consumer lives.

Earn revenue from providing leads to RE agents. (2/x)
Option on the RE txn pie:
Buying a home has massive transaction costs, namely 1) RE agent commissions, 2) mortgage origination costs, 3) title & escrow services, and 4) physically moving stuff.

$Z is going to eat more of this pie while making it smaller. (3/x)
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