Ryan Hamadeh

ETA | Acquire, Scale and Exit SMB’s

[Ryan Hamadeh @ryan_hamadeh]

@JonErlichman Based on what?

[Ryan Hamadeh @ryan_hamadeh]

@JustinTrudeau STFU

[Ryan Hamadeh @ryan_hamadeh]

@_Kuscubasi The only truthful congressman out there

[Ryan Hamadeh @ryan_hamadeh]

@MarioNawfal @WarMonitor3 Where is the $12T number coming from? Doesn’t seem right unless Russia grants unlimited access to its oil and energy fields. May be negotiating tactic - Russia annexes Ukrainian territory and US gets economic deals.

[Ryan Hamadeh @ryan_hamadeh]

@esterezw Stfu

[Ryan Hamadeh @ryan_hamadeh]

@benkellyone Stop spreading bullshit - how many deals did you close using 100% seller note.. probably 0. I would bet that if there are statistics out there for LMM/SMB deals, probably 0.001% of people can close deals solely through a seller note.

[Ryan Hamadeh @ryan_hamadeh]

@StephenMoore That’s absolutely stupid - crazy how some people can still be so blind and not see the elephant in the room.. political blindness.

[Ryan Hamadeh @ryan_hamadeh]

@iamBryanSanders Va

[Ryan Hamadeh @ryan_hamadeh]

@TimurNegru Is there bureaucratic and regulatory hurdles when buying a house in Italy? Always felt that bureaucracy/regulation + language barrier might be barriers for US buyers.

[Ryan Hamadeh @ryan_hamadeh]

@guessworkinvest Very useful, thanks for posting

[Ryan Hamadeh @ryan_hamadeh]

@Sam_Rosati True.. we had a deal fall through after 3 months of DD and we didn’t keep our pipeline going. Keeping the pipeline strong is important. Albeit, even with a full pipeline, you will be forced to stall certain promising deals to avoid conducting multiple formal DDs.

[LisaUnfiltered @DawnLisArmy]

This is I. Kentucky. I hit Trump’s name 10 times & it wouldn’t work. I then began recording & you can see what happened…. Switched it to Harris.

[Arnaud Bertrand @RnaudBertrand]

This is absolutely priceless. And probably the most frightening clip you'll ever watch on the people in charge of the US economy.

Jared Bernstein is literally the Chair of the Council of Economic Advisers, the main agency advising Biden on economic policy

[Johannes Hock @HockJohannes]

Before getting into the search fund world, I had never heard of the term "Step-Up", but now I love it as a quick way to estimate returns on search fund deals.

Forget the excel models. Here's a quick approach to evaluate deal economics as an investor and a searcher 👇

[Ryan Hamadeh @ryan_hamadeh]

@SMB_Attorney Where would the opportunities lie in this environment?

[Ben Tiggelaar 🟠 @bentigg]

Working Capital is either Adjustable or Non-adjustable

I just made up these two terms, so we’ll see if it sticks

Adjustable WC: A residential HVAC owner has historically allowed his customers to pay him within 30 days of finishing a job. A new owner could to change this billing policy, requiring 50% down on a job at signing and 50% on the day of completion. The result of this change for a $5M revenue company could be hundreds of thousands of dollars of cash in your bank account sooner and hugely increases your cash flow conversion cycle. What could you do with $300K extra of cash at a $5M revenue company? Probably a lot!

Non-adjustable WC: Your company gets paid by the government and their set terms are 90 days from when services are delivered. This would be a permanent, unchangeable part of the business model assuming. You cannot change the government terms so you should not expect any change or opportunity to do so in the future. This company inherently needs more working capital, and is typically reflected in a company valuation relative to a company that has a faster paying company (all else equal).

Understand the difference?

It’s important as a buyer to identify each sub component of working capital and see if it’s something inherent in the business model (Non-adjustable WC) or something flexible based on an operational decision (adjustable WC).

Is AR high because of a personal preference or decision made by the owner? Or is AR high because the top customer could pay faster, but has historically paid in 45 days? Or is AR high because you’re contractually obligated to collecting payment in 90 days?

[Sam Rosati @Sam_Rosati]

Do NOT forget HR diligence!

[SMB Attorney @SMB_Attorney]

Had an amazing time at @SMBootcamp_. Met great people. Talked with my hands a lot. Amazing discussions, learning and food. Always fun!

[Ryan Hamadeh @ryan_hamadeh]

@jnortonma You should definitely pursue the podcast idea. I’ll tune in for sure.

[Ryan Hamadeh @ryan_hamadeh]

@Sam_Rosati 1. How do you narrow down your industry - what metrics should be considered (i.e. margins, fragmentation, barriers to entry..)

2. How do you build up industry specific knowledge using online research?