Quilan Foster

Private Equity | ex McKinsey & ex IB

[Quilan Foster @QuilanFoster]

@PEoperator @rorysutherland Speed is the number one rule in business

[Quilan Foster @QuilanFoster]

@slafplzscore Facts

[Quilan Foster @QuilanFoster]

@rileyngg Good reminder, I received more deals this week than in the first 2 months of starting last year. Progress compounds.

[Quilan Foster @QuilanFoster]

You need to build momentum if you want to find good investment opportunities.

When I started a few months back, I had ZERO deal flow.

I contacted brokers, accountants and investment bankers to get on their distribution list.

What started off slow has been compounding over time.

Went from receiving zero deals in a week to 4 in a day.

I’m still doing outreach and connecting with people, but the key takeaway is that your actions compound over time.

What you are doing TODAY will have a big impact on your results months from now.

[Quilan Foster @QuilanFoster]

Thanking God in advance for what this year is about to bring.

[Alex Becker 🍊🏆🥇 @ZssBecker]

Half of becoming extremely successful is not going insane from constant pressure, loneliness, discipline, uncertainty and consistency as the temperature increases.

The reason people don't make it is because they get fed up with these and turn down the temperature.

At some point they want "normal" and tap out.

So few do it because so few can actually tolerate the mental toll and fall back to their lesser ways.

Embrace going crazy where other turn back.

[Dylan O'Sullivan @DylanoA4]

Vincent van Gogh, just keep going

[Quilan Foster @QuilanFoster]

@parkerdlittle Need to add Montreal to your list for a quick weekend after NY

[Quilan Foster @QuilanFoster]

@themgmtconsult That’s big, congrats my friend 🤝🏽

[Quilan Foster @QuilanFoster]

@rezajafer Congrats on making the move 🤝🏽

[Quilan Foster @QuilanFoster]

@MercuriusFilius Lots of people saying ($50M) equity

I understand why people don’t get into investment banking

This ain’t accounting

[Quilan Foster @QuilanFoster]

Key assumptions:
- There’s no cash on the BS
- They’re selling the company

EV is $200M, but they need to repay $250M and follow and order of priority in the debt

Senior lenders gets their full $150M back while junior debt only gets $50M and incur a 50% write-off

Equity holders get completely smoked and are left with zero

[Quilan Foster @QuilanFoster]

100% accurate

[George Mack @george__mack]

The most productive people I know are in the top 10% or bottom 10% for speed of replying to messages and emails. It's a barbell.

[Quilan Foster @QuilanFoster]

@jeremyyamaguchi What’s the structure of this compared to the search fund or independent sponsor model?

[Quilan Foster @QuilanFoster]

@TrendSpider Amateurs, now replace price by market cap

[Quilan Foster @QuilanFoster]

EOI accepted, going to the next stage: management presentation.

Good experience to be moving forward in the deal process.

Let’s see where this leads us.

[Quilan Foster @QuilanFoster]

A deal came in a few weeks ago:

$17.4M revenue
$4.6M EBITDA
26% EBITDA margin

Company’s been around for 79 years and management team wants to stay in place.

Currently drafting the EOI (expression of interest), which is the first step in the acquisition process.

Since it’s a brokered deal, the process is very structured and they really want to qualify all potential buyers.

This creates way more competition - brokers are incentivized to boost the valuation cause they get a cut % of the transaction value.

Let’s see how it goes.

[Quilan Foster @QuilanFoster]

Another day in the trenches

[Quilan Foster @QuilanFoster]

@themgmtconsult That’s exactly what I did, it worked

[Quilan Foster @QuilanFoster]

Two investor meetings and coffee with an M&A banker today.

WHO you know is sometimes more important than WHAT you know.

If you want to make things happen in business, M&A specifically, you need to grow your network and treat it like it’s part of your business model.

[Quilan Foster @QuilanFoster]

@CIMbuilder Way more interesting that the OG Sharks funding useless start ups lol

[Quilan Foster @QuilanFoster]

@DinoSawaya Good insight. How do you think sponsors should differentiate themselves to attract capital?