I’m Investing $100M and Buying 12 Companies in 2024 (here’s how I’ll do it)
Feb 10, 2024
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Discover the strategy of investing $100 million in 12 companies in 12 months. Learn about the criteria for buying companies and the pipeline process. Explore the process of buying a company, including the letter of intent and due diligence. Find out how to maximize ROI and build with the right focus.
Invest in businesses based on what you know and understand, rather than blindly following charismatic figures.
When investing in companies, focus on stable industries, trust in the people involved, and identify opportunities for value-addition.
Deep dives
Choosing the Right Investing Vehicle
The host discusses the different options for investing $100 million to buy 12 companies in 12 months. After evaluating angel investing, private equity, and venture capital, the host decides to go with a holding company because it provides more flexibility and freedom.
The Alignment Creator: Market, Trust, and Value
The host emphasizes three filters for investment decisions: market, trust, and value. They prefer investing in industries that are stable and not easily disrupted. Trust in the people involved in the business, including team members, customers, and investors, is essential. Lastly, the host looks for opportunities where they can add value to the business, leveraging their expertise in software companies.
The Pipeline Calculator and Due Diligence
The host explains the pipeline of deals, from initial conversations with 900 prospects to eventually making offers to around 10 companies. The process involves evaluating the quality of prospects, creating snapshots of potential deals, and structuring offers. Due diligence is also crucial, focusing on financials, technology, team structure, and legal aspects. A detailed due diligence checklist helps ensure that potential issues are identified and addressed before finalizing the deal.
Back in 2008, I had the opportunity to buy 10 defunct homes in Detroit thinking it was my golden ticket.
Only to wake up a year later to a nightmare of condemned properties.
I was convinced by this charismatic person that it was a good idea.
But I found out that I was liable and not only could lose my money, but also get sued by owners in the city for the upkeep.
So I quickly discarded those homes.
Here’s what I learned:
You should only invest in businesses based on what you know.
And for me, that's software.
I knew NOTHING about buying homes and putting them into a rental pool.
That’s why I want to share today’s episode where I reveal our ambitious plan to invest $100M in 2024 and how we're going to buy 12 companies in just 12 months.
Instagram: @danmartell
Twitter: @danmartell
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