Permanent Podcast: Real Talk About Private Equity and Buying, Selling, and Operating Small Businesses

The Process: From First Call to Close (Do Diligence Confidently Ep. 3)

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Sep 14, 2023
This podcast episode explores the process of entering into a partnership with Permanent Equity, from the introductory call to closing a deal. The hosts discuss the importance of diligence and demystify the investment process. They also cover topics such as making an offer, due diligence, defining key terms, and the step-by-step process from the first call to final close.
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ADVICE

Initial Conversation

  • Have an initial conversation to determine shared goals and if Permanent Equity's control-oriented investment (51-100% ownership) aligns with the seller's objectives.
  • If not a fit, help them find suitable alternatives.
ADVICE

Understanding Nuances and Vision

  • Understand the business's nuances by asking questions and potentially signing NDAs.
  • Ensure alignment on long-term vision (10+ years) using the "magic wand question" to explore desired future outcomes.
ADVICE

Model Fit and Growth Alignment

  • Discuss both Permanent Equity’s stewardship model and its specific application to the business.
  • Ensure alignment between Permanent Equity's growth approach, focused on long-term structural health, and the seller's growth expectations.
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