Searchlight Capital Partners’ Post

Nobody wants to buy a firm with a single source of revenue. It’s too risky! So how can you develop a balanced revenue mix that appeals to investors? Check out this week's Profiting in Professional Services video with Greg Alexander to learn more.

There's a key obstacle when engaging with investors - their buying journey rarely involves the actual company. That's why public companies need to become the primary source of information for investors to create a relationship that's more than just a three-digit code. Here's a video from Tom explaining how this habit works or if you're interested, you can download the campaign here: https://lnkd.in/gUDARvJn #marketengagement #shareholderengagement #investorrelations #investors #shareholders

Recently, I've seen many great middle-market deals from private equity firms... 📈 Behind every deal, there are a ton of effort from the entire team. And I want to highlight the work of private equity deal teams! PE deal teams spend their time on building long lists, analysing companies and eventually finding ideal targets based on the investment thesis. 🔎 Finding best target companies is precise work from the very beginning and it can be highly expensive to miss companies from the long list. ❕ ❔ PE DEAL TEAMS: I'd be interested to know what kind of deal sourcing solutions you are currently using. Are you on a deal team? Let's chat about your deal sourcing. Feel free to connect with me! PS. Inven is an intelligent company data platform that provides 23 million companies and all their relevant data at your fingertips!

Useful cheat sheet for any founders who are raising capital….

Founders, before you get too excited (or disappointed) by the valuation on your term sheet, do the math! A higher valuation doesn’t always mean less dilution or a better overall deal. A critical variable is whether the option pool is included in the pre-money calculation. The Option Pool Shuffle refers to a trick where investors push for the option pool to be included in the pre-money valuation. This increases the effective price but results in greater dilution for the founders. Make sure you understand how the option pool impacts your valuation and dilution or you may be in for an unpleasant surprise later. For more tips from me and a dozen VCs on negotiating term sheets, check out "A Founder's Guide to Negotiating VC Term Sheets" in the Featured section of my LinkedIn page. #VCTerms #OptionPool

If you want to know how to handle the future sale of your company listen to this interview with Jason Hendren author of "The Things I Knew Before I Sold to Private Equity" by listening to my interview with https://lnkd.in/gHCuUewh

Do you know what revenue sources will make your Pro Serv firm attractive to investors? In this video, we outline how your revenue mix can keep investors interested or turn them away because your firm is too risky. Subscribe to C54 Insight for guidance on how to sell your professional services firm. https://lnkd.in/gZFZ44dx

As #privateequity firms and financial sponsors of all varieties look for ways to generate liquidity in today’s economic climate, #partialexits are becoming a tool that some firms leverage to provide returns to investors. In our newest Foley Ignite post, my Foley partner Brian Wheeler and I break down the issues to consider when weighing a partial exit. In a partial exit, the sponsor sells a portion of their stake in a portfolio company while maintaining exposure to the company. This allows firms to see a return on their investment yet still participate in future potential upside. Partial exits can generate immediate #liquidity, helping firms manage the fund’s lifecycle by investing in new opportunities or returning capital to #investors. This approach offers a balance of immediate liquidity and #riskmanagement while maintaining potential for future gains. However, challenges include aligning interests between the firm and the new investor, managing control and decision-making authority, and navigating #legal and #regulatory considerations. For more #businessinsights, make sure to read our full blog post over on Foley Ignite - https://lnkd.in/gE4dJBYY #mergersandacquisitions #techlaw #innovation #corporategovernance #foleydeals #foleyforward #garage2global Foley & Lardner LLP

Economic uncertainty has led to a risk-averse approach from investors in recent years, forcing social enterprises and other businesses in developing countries to find alternative sources of finance. Ron Pfende at d.light shares an innovative solution to this challenge: securitization, the process of transforming a group of cash-generating assets into one investable security. He explains how d.light has leveraged this approach to finance its growth, and how securitization yields returns for businesses and investors alike. To read more click here https://buff.ly/47QLkJl