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- 🟠 SMB Capital Raising, How SMBs Profit, and CEO Performance Reviews
🟠 SMB Capital Raising, How SMBs Profit, and CEO Performance Reviews
Welcome to the SMB Scoop. 3 incredible pieces of SMB content this week.
1. So you want to raise investor equity capital for a small business purchase?
Incredible walkthrough of what I would say is an A+ deal presentation. Raising equity capital from investors can be daunting, especially when you don't have the experience. A template can help bridge this experience gap immediately. Do 50% of what is outlined in this thread and you'll be well ahead of the the typical capital raiser. This was my favorite piece of content I've consumed in a while.
If you want to raise capital for your SMB acquisition, you need to make an effective investor memo.
In this thread, we'll show you how.
And we'll give you the PPT template (for free).
👇🧵
— DealFlow (@LMMDeals)
7:21 PM • Feb 18, 2023
2. The 4 ways to generate a profit when buying a small business
This tweet is from a private equity (lower middle market) perspective but the mindset is spot on. I evaluate and think about value the same way with small business / micro PE opportunities. There are many ways to 'win' & create value.
When evaluating deals, I like to have multiple ways to win. There are 4 main ways to generate a return. Organic growth, cash flow, buying m&a below your basis, and multiple expansion. You don’t need a fancy model to know how much value these impact your return by. See below
— Privateequityguy (@midmarketPEguy)
6:44 PM • Feb 16, 2023
3. Conducting a performance review for a CEO
A performance review with a CEO is different than doing one for a typical employee. You should be soliciting 360 feedback from various stakeholders in a collaborative & productive way in order to propel the business forward:
How do you performance review a CEO?
Just like any other employee review, right?
It's not that simple.
Here's how I do it.
A 🧵:
— Michael Girdley (@girdley)
1:15 PM • Feb 17, 2023
Accredited Investors: Want to get in the flow of passive SMB and ETA deals? I'm starting a LP/investor list where I'll send you off-market SMB deals through my network.
At Bardo Capital, I buy B2B companies ($1-$6M of EBITDA) mostly from retiring owners. There's something really special & important in being a steward of another entrepreneur's legacy.
Ben Tiggelaar