Ep. 70 Inside the Mind of a Private Equity Investor

Frank Cottle led an investor group to buy Hi-Mark Software for 10 times EBITDA. Cottle then sold a chunk for 15 times and ultimately sold his last tranche of equity for more than 16 times EBITDA to Lufthansa. In this interview, you’ll get deep inside the mind of a private equity buyer and learn:

• three reasons acquisition deals fall apart.
• the difference between your reputation and your brand and which one acquires value most.
• the definition of “suicide by investor” and the dangers of getting into bed with a private equity group.
• how stock clawbacks can dilute your position to zero in the company you started.
• how a stock re-capitalization works.
• one key decision every entrepreneur must make in growing their company.
• why cross-selling as an investment thesis is flawed.