Welp... it's time to walk through this train-wreck of a view

If this were all correct, no CEO should EVER do a deal with a PE firm.

I've seen 5 CEOs make 8 digits on exits over a 3x. 3 of them invested basically zero dollars

1. Carry is not charged to the asset \ deal level NOR is there anything in the docs about the deal team on an asset for a closed ended fund

2. Expensive equity? Most management is bringing nothing to the table except a roll. It's usually free and deserves to be the last out

https://x.com/privateinequity/status/1984277333864227119

3. Riskiest? Most CXOs bring zero invested dollars to the table and are only risking time. This is a good trade

4. "So your “10%” is really 10% of whatever’s LEFT after everyone else eats first."

There is a catch up function in most MIPs. Certainly nothing a PE firm would say no to on a 5x exit. Have your attorney push hereCo

1/38 DEFENSE AGAINST THE DARK CONSULTING ARTS! HOW TO SURVIVE THE LAYOFFS

Unfortunately the 1980s playbook of shareholder value (and, ostensibly, undoing ZIRP mistakes) is back

We will deliver 3 things:

How to know it's coming
How the programs work
How to insulate yourself
🧵 2/ THE DOG WHISTLES - If you hear these, the programs are coming. Good to get your resume up to date

𝗥𝗶𝗴𝗵𝘁-𝗦𝗶𝘇𝗶𝗻𝗴: Although it sounds neutral, right-sizing is often a euphemism for reducing the workforce to fit current business needs, which translates to layoffs.

MY MOST USED RESTRUCTURING TOOL

Zero based budgeting - I tend not to call it that due to the negative connotation. We use Tactical Budget Engineering, but you can pick your own name

TLDR: Drive cost leadership every cycle and prevent “spend what you have allocated” mentality


ZBB starts by discarding the previous budget. Each new cycle begins with zero, requiring every department to justify their expenses from scratch.

This ensures that all spending is relevant to the current needs of the organization.

CONTRARIAN THINKING COURSE CRITIQUE

This is totally appropriate under fair use guidance from the SCOTUS decision: Campbell v. Acuff-Rose Music (1994)

Let’s dive in to @codie_sanchez’s junior course

1. Pure chatGPT scripts.

Any decent person on X can help you do this!

Do not subscribe to her grift @Codie_Sanchez INDUSTRY NETWORKING EVENTS

You can literally type into chatGPT “what are the best places to network

Why would anyone buy an electrical business…It’s the worst quality revenue

I briefly worked on a restructured electrical business debt was written (2nd lien) at $95 in 2013

5 types of revenue:
Contractual Recurring
Non-Contractual Recurring
Repeat
Actuarial
Transactional

https://twitter.com/Will_Schryver/status/1866672649071477064

Contractual Recurring Revenue

• Customers are bound by contracts to use a vendor’s products or services over a set period.
• Predictable revenue stream due to contractual obligations (e.g., SaaS subscriptions, long-term leases).
• High revenue stability as customers must continue usage unless contractually terminated or expired.
• Common in industries like software, telecommunications, or utilities.

“A room without books is like a body without a soul”

Here’s some of what I’ve read this year a.co/d/dpVqFj2

Demand forecasting is critical for managing cash, preventing obsolete inventory, and not missing revenue

𝗔𝗽𝗽𝗹𝘆 𝘁𝗼 𝘁𝗵𝗲 𝗟𝗲𝘃𝗲𝗿𝗨𝗽®️ 𝗮𝗰𝗰𝗲𝗹𝗲𝗿𝗮𝘁𝗼𝗿 𝘁𝗼 𝗹𝗲𝗮𝗿𝗻 𝗵𝗼𝘄 𝘄𝗲 𝗱𝗼 𝘁𝗵𝗶𝘀...𝗙𝗥𝗘𝗘

QT, repost, comment, follow for DM





𝗕𝘂𝗶𝗹𝗱𝗶𝗻𝗴 𝘁𝗵𝗲 𝗙𝗼𝗿𝗲𝗰𝗮𝘀𝘁

There are key considerations when creating a base forecast, such as using statistical models, promotional uplift, and incorporating market intelligence.

These elements combine to form a robust and adaptive forecasting foundation.

𝗣𝗥𝗜𝗩𝗔𝗧𝗘 𝗘𝗤𝗨𝗜𝗧𝗬 𝗟𝗕𝗢 𝗠𝗢𝗗𝗘𝗟 𝗜𝗡𝗢𝗥𝗚𝗔𝗡𝗖 𝗘𝗡𝗧𝗥𝗘𝗣𝗥𝗘𝗡𝗘𝗨𝗥𝗦𝗛𝗜𝗣

VCP + ROLL UP + waterfall

Everything you need to understand a buy out!

We will NEVER sell a course

First 500 to: Follow, like, repost, QT & COMMENT to get a auto DM copy 𝗖𝗼𝗻𝘁𝗿𝗼𝗹
The Control tab is the nerve center of the LBO model, managing inputs and key assumptions.

It allows users to configure scenarios, set up parameters, and drive the entire model’s functionality, ensuring that the output reflects accurate and strategic decisions.

𝙐𝙇𝙏𝙄𝙈𝘼𝙏𝙀 𝙋𝙍𝙄𝙑𝘼𝙏𝙀 𝙀𝙌𝙐𝙄𝙏𝙔 𝘼𝙎𝙎𝙀𝙏 𝘿𝙄𝙇𝙄𝙂𝙀𝙉𝘾𝙀 𝙏𝙀𝙈𝙋𝙇𝘼𝙏𝙀 - 80 Slide Template

Like, COMMENT, Follow - so I can DM you - to get the full version

How to use guide below

(We put an awful color scheme on purpose... want to see your versions) 1/ When conducting due diligence on a private equity-backed asset, start with market definition: analyze revenue share by areas, key segments, and geography.

This step is crucial to understanding where the target stands in the market and identifying growth opportunities.

1/ 𝙈𝙊𝙎𝙏 𝙍𝙀𝙌𝙐𝙀𝙎𝙏𝙀𝘿 𝙋𝙇𝘼𝙔𝘽𝙊𝙊𝙆: 𝙕𝙀𝙍𝙊 𝘽𝘼𝙎𝙀𝘿 𝘽𝙐𝘿𝙂𝙀𝙏𝙄𝙉𝙂

The best use of ZBB is to make a cultural change

For the full playbook DM:

1. Comment ZBB & a question

2. Repost





𝘚𝘵𝘢𝘳𝘵𝘪𝘯𝘨 𝘧𝘳𝘰𝘮 𝘴𝘤𝘳𝘢𝘵𝘤𝘩 𝘦𝘢𝘤𝘩 𝘣𝘶𝘥𝘨𝘦𝘵 𝘱𝘦𝘳𝘪𝘰𝘥, 𝘡𝘉𝘉 𝘦𝘯𝘴𝘶𝘳𝘦𝘴 𝘯𝘰 𝘥𝘰𝘭𝘭𝘢𝘳 𝘨𝘰𝘦𝘴 𝘶𝘯𝘦𝘹𝘢𝘮𝘪𝘯𝘦𝘥.

This method demands justification for every expense, pushing firms towards more disciplined spending. 2/

WORKING CAPITAL MANAGEMENT SYSTEM PLAYBOOK

There is going to be a great need for these capabilities over the next 5-7 Quarters

To receive the playbook by DM:

1. Comment - Liquidity & a question or thought on restructuring \ distressed

2. Follow

3. Repost 1/ Starting with a deep dive into working capital management

The first step? Understand the overarching importance of liquidity for stability and agility in the market. 2/

1/ Mergers in private equity are under scrutiny

The perception - and sometimes reality - is that PE firms are just duct-taping companies together.

We're going to be focusing on post merger integration over the next few weeks and our approach to interweaving companies
M&A is about more than numbers; they’re about merging cultures, systems, and visions.

Start by planning early during due diligence. Involve diverse teams for a thorough evaluation, ensuring their involvement in executing subsequent changes. Planning is the bedrock of success

1/ ASSOCIATE'S GUIDE TO BECOMING INDISPENSABLE TO YOUR VP

People often ask me "HOW TO GET PROMOTED"

You're thinking about it backwards... do these things below and they will take you by the hand and get it done for you!!

Reposting as it got deleted on 1/4

Also, she’s a muppet 2/ Understand their Goals--- they aren't always glaringly obvious

Know your VP’s priorities, targets, and pressures.

Align your work to support these objectives directly.

Be proactive in seeking clarity on expectations.

a.co/d/5as2q2T

1/ Unlocking Operational Excellence with Kanban!

Discover how this methodology transforms workflows, boosts productivity &ensures continuous improvement.

Stay tuned as we explore the core concepts and essential tools that make Kanban a game-changer!

Repost for deck!

2/ Overview of Kanban:

Kanban is a visual management method designed to optimize efficiency & foster continuous improvement.

By visualizing tasks on a Kanban board, teams can manage work in progress, identify bottlenecks, & enhance collaboration for operational excellence.

1/ Meet the insecure overachiever

@McKinsey molded this archetype, pulling high potentials into a high-pressure culture

But what happens when they leave the firm? They often pivot to influential roles elsewhere, their formative experiences acting as both a launchpad and a trap 2/ The insecure overachiever is polished and poised, the ideal candidate on paper.

Underneath, however, lies a constant battle with self-doubt.

Despite their successes, they're haunted by a single question: Am I good enough?

1/ WHEN DO I ENGAGE WITH MY MENTORS? HINT, IT'S NOT QUARTERLY

Navigating the mentorship landscape requires a strategic approach.

Identify key milestones early to ensure your career trajectory remains on target. 2/ ENGAGEMENT POINT 1: 𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝗶𝗰 𝗠𝗶𝗹𝗲𝘀𝘁𝗼𝗻𝗲𝘀
Skill gaps are hidden stepping stones to success.

Proactively work with your mentor to identify these gaps and develop a targeted action plan to bridge them effectively, ensuring a more efficient development path.

1/ HOW TO RUN A FIT FOR PURPOSE DAILY MANAGEMENT SYSTEM - a 🧵

We designed this on the fly Monday and have been refining it all week

STOP BRAINSTORMING & TRY-STORM!

Would love to hear how you use DM in your orgs!

Please repost and share your thoughts

CC: @noac_mit 2/ ASSET BOARD - This focused on an asset level and how to triage each asset and who is lead Transformation Director

1/ BOOK LIST FOR JAMES THE GOAT @james_goat53509

Yesterday he asked me for a booklist for where he’s at in his career

He’s playing a dual role as a principal for sourcing while learning how to be an operator as a Sr. Associate

It’s not easy what he’s doing

Not in any order 2/ The First 90 Days: Proven Strategies for Getting Up to Speed Faster and Smarter, Updated and Expanded a.co/d/1Xle50u

1/ DEAL SCHOOL - OUT OF OUR 'BUY BOX' BUT INTERESTING - MANUFACTURING GEM

Normally I'd never invest for the upside case, but this business's recurring revenue is so stable that James did a "cashflow burn-off" model that gets us a decent return even if nothing else works! 2/ Market Position: We’re assessing if the company is just coasting along or if they’ve got the potential to outpace the competition.

They haven't invested in the Sales Engine... We are calling this a zero for that reason

1/ OPS MATH - PRODUCTION LEVELING

This is an esoteric topic, but one we use quite frequently

It's critical to be able to level load production when you are cutting costs OR growing revenue

Will DM you with space for tonight!

2/ Just-in-Time manufacturing pivots on precise scheduling, delivering products as needed.

Yet, the crux lies in matching variable customer demand without overcommitting resources—a tightrope walk balancing efficiency and responsiveness.

1/ OPS VP GUIDE - APPROACH ON DC TRANSFORMATION

PE firms tend not to worry about the DCs

This is a mistake... It's not just about making things... they have to reach the customers

Here is an overview of an approach we took.

There's no magic bullet to getting these done.

2/ Warehouse automation drives efficiency at scale.

Implementing high-tech solutions transforms DC operations, enabling growth without linear increases in labor—maximizing ROI and future-proofing business.