We generally invest from discretionary funds but will occasionally pitch others on our deals; institutional capital partners as LPs or institutional owners for us to act as a 3rd party operator (lenders are a whole other ballgame).
These are the deals in which I learn the most.
These are the deals in which I learn the most.
Pitching outsiders means I must convince two separate groups, each discerning in their own way, that the business plan is solid, risks boxed in, and upside available (if not likely).
Convincing our internal team – investments, operations, revenue, finance, legal – typically involves a longer-term consensus building effort around a deal, and an iterative process of building a business plan and getting buy-in discipline-by-discipline.
Convincing our internal team – investments, operations, revenue, finance, legal – typically involves a longer-term consensus building effort around a deal, and an iterative process of building a business plan and getting buy-in discipline-by-discipline.
Once that’s done, we have a plan for the asset that was developed with input from the groups that will be voting at investment committee.
While I need know, articulate, and sell the plan, I’m selling to folks who know it already (at least pieces) and I have allies at the table
While I need know, articulate, and sell the plan, I’m selling to folks who know it already (at least pieces) and I have allies at the table
That next step, of pitching an outside group, is typically the hardest part.
I need to be able to articulate the plan at a fundamental level, including risks and opportunities.
I need to answer questions, foreseen and unforeseen
I need to be able to articulate the plan at a fundamental level, including risks and opportunities.
I need to answer questions, foreseen and unforeseen
I need to explain things we take for granted – if our head of revenue thinks she can hit $XXX in ADR in the first year, we generally take her word for it internally because we know she’s a very conservative projector, but externally we need to “show our work”
This process, particularly the questions or concerns I’ve never heard before, makes me a better deal person
I can’t lean on SMEs w/ built-in credibility with decision-makers to push a plan’s merits, and I can’t rely on knowing my audience as well as I know the internal audience
I can’t lean on SMEs w/ built-in credibility with decision-makers to push a plan’s merits, and I can’t rely on knowing my audience as well as I know the internal audience
In short – I’ve gotta know my deal cold, and the more deals I know cold the better my next deal will be.
• • •
Missing some Tweet in this thread? You can try to
force a refresh
