The Inner Workings of Private Equity
- Trade Secrets on earn-outs, equity ratchets, vendor financing, etc.
- Articulated Theories on finding top companies in hot industries
- Guidelines on becoming the most valued Private Equiteer at your firm
- Advanced Formulas for Valuations, Working Cap, CapEx, Covenants
- Explanations on how PE firms enter investments at such low prices
- PLUS much more detailed info on PE from many years at top firms
For Anyone Exposed to the PE Industry
- Job Hunters looking for a secret weapon for Private Equity interviews
- Private Equity Pros interested in the secrets of other top PE firms
- Limited Partners looking for the tricks used by PE general partners
- Investment Bankers putting together deals to entice Private Equiteers
- Business Owners looking for capital and considering Private Equity
Become a business valuation master!
Learn to structure deals like a pro!
Discover tricks that drive PE success!
Land a new job with insider info!
Get the eBook Here →
A 200+ page PDF eBook exploring the formulas, tricks and trade secrets of private equity.RRP US$49Now only$39
I just wanted to write to thank you... This has been hands down the most informative and useful document I have read on the industry.
Principal - Major US PE Firm
It's great to come across someone who not only knows their stuff but is generous with their knowledge and able to articulate it with clarity.
Director - M&A Specialist
Fantastic stuff. I like your writing style - concise, knowledgeable, and humble. Solid. Thanks for taking the time to put all these thoughts down.
10-Year Investment Banker
What Do You Get in the eBook?
|1. Introduction2. Private Equiteers: The Confidantes Behind the Cloak|
3. Firm & Fund: The Architecture, Anatomy and Arrangement
- Do you have what it takes?
- A week in the life of a mid-market private equiteer
- Working for a mega-fund vs. mid-market fund
- The human side of private equity teams and dealmaking
- The recipe for success for mid-market private equiteers
- How to discuss deals within a private equity team
- Toning it down for the team
- Show me the carry... or at least most of it
- In it for more than the carry
- Show me the carry, part II
- Human behavior and its affect on private equity
- Private equiteers and bankers; VCs and entrepreneurs
- String learning curves together; quit your job every 6-12 months
4. Theories & Ideas: There's More Than One Way To... Save a Cat
- Structure of a private equity fund
- Different stages of venture capital and private equity funding
- The 4 life stages of a private equity fund
- The subtle hierarchy of the private equity structure
- There's no way that's private equity
- Types of investors in a private equity fund
- The 2/20 rule for private equity funds
- Carried Interest 2.0
- Carried interest, the Buffett way
- Private equity 101: the J-Curve
- Bred in captivity... and looking to escape
- Capital calls: who's really in control?
- Due diligence for LPs
- Firm-wide financial controllers
- Sure, let's get married, we've known each other at least 60 minutes
- Is venture capital a form of private equity and vice versa?
5. Structuring: The Key to Value Preservation in Private Equity
- The anatomy of an attractive industry in all economic conditions
- What to look for in potential investees in this economic climate?
- Borrrrrrrrrrring... but we love boring in private equity
- A problem with the 'we love boring businesses' argument
- The principal-agent problem... and private equity
- Adhocracy: the antithesis of today's corporate strategy
- The four horsemen of the private equity apocalypse
- Appearances are only skin deep in life and private equity
- Mistakes of ambition vs. mistakes of sloth
- Do we need a Magna Carta for the private equity industry?
- Corporate governance the natural way
- Correlation vs causation: industry analysis
- Is listed private equity an oxymoron?
- Should we treat firms that sign up to the UNPRI as suspicious?
- A new benchmark for the risk-free rate
- Look, the private equiteer has no clothes
- The nomadic private equiteer: it's possible in theory
6. Banks & Debt: The Key to Value Creation in Private Equity
- The value-based components of a private equity deal
- Stake with the sizzle
- Preference equity and convertible notes
- Why do certain investors deserve preference equity?
- Bridging the gap with an earn-out
- Funding earn-outs... a tip for new players
- Are earn-outs fair or just a product of private equity avarice?
- The importance of managers investing cold hard cash
- The private equiteer toolbox: equity ratchets
- The pros and cons of equity ratchets
- Private equity ratchets in practice
- Private equity ratchets in practice II
- Keeping lawyers fed and clothed
- Term sheet treatise
- Term sheets: Indemnification
- Term sheets: covenant not to compete
- Term sheets: drag-along rights
- Term sheets: exclusivity
- Term sheets: lock-up provisions
- Term sheets: preference participation and liquidation preference
- Tax: a private equiteer's second best friend
- The anatomy of the ideal board of directors
- Net asset adjustments at transaction settlement
- Receiving a return sooner: fees, glorious fees
7. Analysis & Due Diligence: Sorting the Plums from the Lemons
- Borrowing from the bank: asset versus cash flow
- The most common covenants in private equity debt financing
- Using EBITDA or FCF in debt covenant calculations
- Using debtors to secure additional liquidity
- Vendor financing for private equity deals
- Vendor financing example
- The credit tick of approval and its hidden value
- Banks are destroying small businesses
- Types of due diligence that private equity firms conduct
- Market due diligence in private equity
- All financial statements matter in private equity
|7. Analysis & Due Diligence: Sorting the Plums from the Lemons|
8. Valuation: Making Sense of What to Pay
- Financial profit & loss 101
- The devil's in the detail
- The amplifying effect of diminishing sales
- Unprofitable customers
- Free cash flow, a primer
- What's the deal with capex anyway?
- How to calculate capex from financial statements
- The free cash flow capex conundrum
- Working Capital Series: Introduction
- Working Capital Series: References and calculations
- Working Capital Series: Drivers
- Working Capital Series: Cash-positive and cash-negative profiles
- Working Capital Series: Valuation
- Working Capital Series: What to do at settlement?
- Working Capital Series: the locked-box approach
- Working Capital Series: Measuring and monitoring
- Working Capital Series: Improvements and one-off cash wins
- Working Capital Series: Preparing for sale
- Confidentiality during market due diligence
9. Entrepreneur: Donning an Important Hat
- The silence of snow and investee valuation methods
- The earnings multiple valuation method
- Quick and dirty, yet conservative, valuation in these crazy times
- Comparing a trade deal with a private equity deal
- I'll take your privates and give you my publics
- Pre-money versus post-money valuations
- An apples vs apples comparison of earnings
- Should I consider EBITDA or EBIT?
- Does enterprise value include working capital?
- What happens to EV when you issue more equity?
- Drivers of valuation multiples
- Negative equity, but positive cash flow
- Negative equity: just add a pinch of debt and stir gently
- The "plus stock at value" phenomenon
- Let's be honest, we're over-geared and in hot water
10. Dealmaking: The Art of Getting In
- Fundamental themes of private equity value creation
- Obvious value-add for private equiteers
- I just made an investment, what do I do now?
- An ounce of entrepreneurial blood
- A lean mean entrepreneurial machine
- EQ: Entrepreneurial Quotient
- The customer value proposition
- Making something of this downturn: cyclical businesses
- Apparently everything is counter-cyclical now
- Drucker's third deadly business sin: cost-driven pricing
- More than an arbitrary academic theory: Porter's 5 Forces
- Porter's 5 Forces: what about a 6th, 7th or even 8th force?
- Risk management is temporal for private equity
- The competitor without a face: internal investment
- Salary versus performance
- Workplace performance
- The essence of a business
- The most important ingredient to success in business
- The business model: a humble hero
- Keeping a safe distance when advising investees
11. Anti-PE: Is It Really Magic or Just a Con?
- Private equity deal strategies
- Channels for private equity deal origination
- The pros and cons of intermediation
- As difficult as it may be, it pays to be nice to bankers
- The many drivers of a private equity investment
- Opportunities abound, but what about the existing portfolio?
- Minimum stake a private equiteer will take in a business
- A preference for partial sales
- Low-hanging deal fruit ain't what it used to be
- A word on private equity and franchises
- Private equity deal killers
- The aftershock of hard negotiations
- The economics of bolt-on acquisitions
- Methods for private equity firms to exit investments
- Exiting founders, unaligned interests
- Is a recapitalization a compelling exit strategy?
- How to get the best price when selling a business
- Tips for an entrepreneur to investigate private equity options
- Stay clear of single-owner private equity firms
- Equity returns for debt risk
- Natural selection or naturally speculation?
- Private equity returns are misleading
- Private equity returns are misleading - Part II
- It's all about investing in the best management team... isn't it?
- Clip-on acquisitions in private equity
- The puzzle of private equity
- Private equity: having your cake and eating it too?
- The superficiality of most due diligence
- A sure-fire way to get private equiteers talking nonsense
- The perversity of secondary buyouts
- Venture capitalists stymie innovation
- Stop deceiving your limited partners!
The Authors have invested Millions at top Private Equity firms!
Every industry has its secrets. But it takes employees MANY years to learn them and climb the ladder. Why wait? This guide teaches the tricks & trade secrets right now! From pros with many years of coalface experience.