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Author: blackmorepartnersinc
Your 12 month Roadmap to Win the PE Game – for all full-conference executives – Handout for session #2
Written By: Gerald O’Dwyer II
The PE Guru — Blackmore Partners, Inc | October 16, 2024
Here’s a breakdown of your 12-month roadmap for executives aiming to win the Private Equity (PE) game. This manual is structured to emphasize getting deals done with an exit in mind, presenting interconnected strategies and compelling reasons for each stage. The roadmap includes actionable steps, financial reasons, and key ideas for success.
12-Month PE Success Roadmap:
Month 1-3: Laying the Foundation
1.Define Your Deal Thesis (Stage 1)
- Idea: Develop one or more deal theses based on your background and industry expertise.
- Example: An automotive executive targeting Goodyear licensees for consolidation in personal mobility.
- Compelling Reason: PE firms want executives who bring their own acquisition ideas.
- Financial Reason: A clear deal thesis enhances your positioning as a valuable acquisition candidate, boosting your credibility.
- Task: Draft a high-level acquisition thesis.
2.Build Your Acquisition Funnel (Stage 2)
- Idea: Start actively developing your list of prospects (target companies/owners).
- Example: Create a list of 50 potential acquisition targets.
- Compelling Reason: PE executives must continually build and refine their funnels to maintain momentum.
- Financial Reason: A well-qualified funnel saves time and resources, increasing the chances of closing a deal.
- Task: Build an Excel sheet with 50 targets, their contact information, and industry details.
3.Develop Your Messaging to Owners (Stage 3)
- Idea: Prepare personalized outreach messages for contacting business owners.
- Example: Write a concise email and voicemail script for owners.
- Compelling Reason: Engaging owners effectively is key to getting to the negotiation table.
- Financial Reason: Tailored messaging increases the likelihood of a response and speeds up deal timelines.
- Task: Draft two versions of your introduction email and voicemail for different target niches.
4.Month 4-6: Expanding Your Network 4. Attend Industry Conferences (Stage 4)
- Idea: Identify and commit to attending relevant industry conferences.
- Example: Attend 2 ACG and 3 BlackmoreConnects conferences in the first half of the year.
- Compelling Reason: Conferences are ideal environments for meeting owners and PE firms.
- Financial Reason: Each conference presents a high ROI, with opportunities to expand your network, leading to better deal flow.
- Task: Secure your attendance at conferences and schedule 5-10 meetings per conference.
5.Develop and Track Acquisition Funnel (Stage 5)
- Idea: Establish a system for tracking and qualifying acquisition targets.
- Example: Use a CRM or Excel tracker to monitor your progress, such as deal stage, last contact date, and next steps.
- Compelling Reason: A detailed tracking system provides visibility on where each deal stands and helps maintain momentum.
- Financial Reason: Consistent tracking ensures that no opportunity is missed, optimizing your acquisition funnel.
- Task: Develop and update your acquisition funnel weekly.
6.Continue Building Relationships with Owners (Stage 6)
- Idea: Proactively engage with your funnel of owners through follow-ups.
- Example: Set a goal to reach out to 10 owners per month.
- Compelling Reason: Relationship-building is the backbone of successful deal-making.
- Financial Reason: Persistent engagement reduces the risk of losing deals to competitors.
- Task: Create a follow-up schedule for the next 90 days, ensuring consistent communication.
7.Month 7-9: Advancing in Negotiations 7. Build Relationships with Customers and PE Firms (Stage 7)
- Idea: Strengthen relationships not only with owners but also with potential customers and PE firms.
- Example: Meet at least 10 PE firms and 5 future customers at industry events.
- Compelling Reason: Diversifying relationships ensures a holistic approach to your acquisition.
- Financial Reason: These relationships can provide crucial insights and speed up the acquisition process.
- Task: Update your CRM with notes from new PE and customer meetings.
8.Owners Call You Back (Stage 8)
- Idea: Ensure that your relationship-building efforts are resulting in callbacks from owners.
- Example: Follow up with owners who have not responded within 30 days.
- Compelling Reason: Continued engagement keeps your prospects warm and shows owners you’re serious.
- Financial Reason: Regular follow-ups can revive deals that were previously stalled.
- Task: Set up automated follow-up reminders to ensure continuous engagement.
9.Share NDAs and Financials (Stage 9)
- Idea: When owners are ready, move the conversation to signing NDAs and reviewing financials.
- Example: Share NDAs with 3 owners by the end of Q3.
- Compelling Reason: This step signifies a level of trust and commitment from both sides.
- Financial Reason: Reviewing financials early helps prevent any unwanted surprises later in the deal.
- Task: Ensure legal resources are ready to draft NDAs and review financials.
10.Month 10-12: Moving Toward Close 10. Submit an Indication of Interest (IOI) (Stage 10)
Idea: Prepare and submit an Indication of Interest to the owners you’re engaged with. – Example: Submit IOIs for 2 potential targets by month 10. – Compelling Reason: An IOI formalizes your intent and begins the serious negotiation process. – Financial Reason: Early IOIs help expedite due diligence and keep the acquisition on track. – Task: Draft your first IOI template for potential acquisitions.
11.Present a Letter of Intent (LOI) (Stage 11)
- Idea: Move to the final stages of negotiation by submitting a formal Letter of Intent.
- Example: Have at least one LOI submitted by month 12.
- Compelling Reason: This step signals a high probability of deal closure.
- Financial Reason: An LOI sets the framework for finalizing the transaction and provides clarity on terms.
- Task: Prepare a draft LOI with clear terms for closing the deal.
12.Put Money in the Deal (Stage 12)
- Idea: Be prepared to commit your own capital in the deal at closing.
- Example: Secure personal or outside funding for your portion of the deal.
- Compelling Reason: Skin in the game reassures owners and PE firms of your commitment.
- Financial Reason: Personal investment leads to higher personal returns, making the exit more lucrative.
- Task: Finalize your funding sources for your equity contribution to the deal.
Additional Resources:
- ACG Membership and Conference Participation
- Join ACG as a member for consistent access to key networking events.
- Reason: Membership provides you with consistent visibility to PE firms.
- BlackmoreConnects Membership
- Become a full member to access networking, deal thesis reviews, and a broader range of connections.
- Reason: Membership offers long-term payback and builds relationships faster than conference-only attendance.
- Commitment to Learning
- Read “Search for Business” and “A Better Way to Network” twice within the first quarter.
- Reason: Continuous learning keeps your approach fresh and strategic.
This roadmap provides a step-by-step guide to ensure you’re continually progressing towards closing a deal and achieving a successful exit. By following these stages and investing in networking, branding, and acquisition strategy, you’re aligning yourself for long-term success in the PE game.
