3 Rules for Deal Making that'll Teach you More than ANY PE MBA
Speak finance and earn finance like $ w/o the IBanking like hours.
I did the Goldman thing... believe me, you don't need to. A 🧵
Speak finance and earn finance like $ w/o the IBanking like hours.
I did the Goldman thing... believe me, you don't need to. A 🧵
📏 Rule #1: Cash Isn’t King, Cashflow Is
I optimize for making $’s on my deals day 1.
When I close a deal personally (not through our VC funds), I want that deal to pay me that same day.
Greedy, maybe? Possible, unequivocally.
I optimize for making $’s on my deals day 1.
When I close a deal personally (not through our VC funds), I want that deal to pay me that same day.
Greedy, maybe? Possible, unequivocally.
📏 Rule #2 @ycombinator Term Sheets are for Amateurs
- Most sign term sheets straight from Y-Combinator.
- Have to when deals are super hot (theoretically).
But if I’m optimizing for cash flow, not potential 100x’s, no thanks. Instead...
- Most sign term sheets straight from Y-Combinator.
- Have to when deals are super hot (theoretically).
But if I’m optimizing for cash flow, not potential 100x’s, no thanks. Instead...
Ask for things like:
- Accelerated repayments (aka I give you x dollars, you pay me first before you take profit)
- Personal guarantee on a deal till I get my $ out
- Put options
- Equity kickers - aka if we do this I get x in equity
- Accelerated repayments (aka I give you x dollars, you pay me first before you take profit)
- Personal guarantee on a deal till I get my $ out
- Put options
- Equity kickers - aka if we do this I get x in equity
📏 Rule #3 Money Now + Money Later
Every deal you look at, ask yourself: can I get money now out of this AND an opportunity for upside later. Ex:
- Equity + warrants
- Distribution + options
Welcome to deal-making... careful this sh*t's addictive
Every deal you look at, ask yourself: can I get money now out of this AND an opportunity for upside later. Ex:
- Equity + warrants
- Distribution + options
Welcome to deal-making... careful this sh*t's addictive
Get smart fast:
- Read The Lifestyle Investor by Justin Donald
- Read Venture Deals
Skip the MBA.
- Read The Lifestyle Investor by Justin Donald
- Read Venture Deals
Skip the MBA.
If you're into:
- Passive income ideas
- Ways to cashflow
- How to buy businesses
Follow me (@codie_sanchez) for a daily thread for the next 3 weeks :)
- Passive income ideas
- Ways to cashflow
- How to buy businesses
Follow me (@codie_sanchez) for a daily thread for the next 3 weeks :)
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