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.