4min chapter

Think Like an Owner cover image

Kurt Leedy and Kyle Coots - The Three Methods to Grow Capital - Ep.134

Think Like an Owner

CHAPTER

Lbo

What you pay upfront really matters. We focus more heavily on the quality of revenue than we do on anything else, I think. So in a sort of classic LBO type investment, we're going to look pretty heavily at what is the quality of that revenue. It might be a contractually recurring revenue business, in which case we can get pretty granular on churn stats. And then you want to have some growth tailwind for the business, ideally. If you put a attractive purchase price, high retention, high revenue quality business, now with double-digit growth, you're going to make money. Like you don't even need to have anything heroic on the back end happen. You

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