When business owners consider selling their company, the term “rolling equity” often comes up in conversations with advisors and investors. But what exactly does rolling equity mean and how does it impact the transaction? Simply put, rolled equity represents the portion of ownership that the seller retains after the sale rather than cashing out completely…
In the complex and evolving landscape of business acquisitions, understanding and leveraging key financial metrics is crucial for identifying and capitalizing on value-generating opportunities. Among these metrics, the Multiple On Invested Capital (MOIC) stands as a beacon for assessing investment returns, especially in the context of acquisitions and private equity. This guide from Twelve31 Ventures..
Introduction: In the tempestuous seas of the digital economy, Artificial Intelligence (AI) emerges as a lighthouse, guiding small enterprises towards uncharted territories of innovation and strategic competence. The narrative around AI is often dominated by its implications for large corporations, leaving a narrative gap regarding its transformative potential for smaller entities. In this exploration, we..
Introduction Over the past 20 years, the search fund industry has proven to be a breeding ground for successful entrepreneurial ventures and lucrative investment opportunities. This once-obscure investment model has attracted significant attention, providing high net worth individuals, family offices, and institutional investors with alternative avenues for capital deployment. While there are multiple paths to..
Introduction In the rapidly evolving landscape of the 21st century, one technology stands out for its transformative potential: Artificial Intelligence (AI). As we stand on the brink of the fourth industrial revolution, the integration of AI into everyday business operations is not just an option—it’s an imperative. This is as true for large multinational corporations..
In 1987, a professional wrestling match between Bruiser Brody and Lex Luger in Florida took an unexpected turn. Instead of the standard cage match fans anticipated, the bout transformed into a strange, unscripted encounter. This serves as a reminder that even the most carefully choreographed events can veer off course. Businesses, like wrestling, often face..
In a world where acquisitions have long been the driving force behind business expansion, it’s no surprise that an overwhelming majority of these deals end up failing. This has led to a growing number of small businesses seeking a more sustainable approach to growth: organic expansion. Nurturing their core businesses and growing from within, these..
When it comes to business, it’s not uncommon for owners to avoid discussing money. Many business owners are hesitant to raise prices and potentially harm a good relationship with their customers. But what happens when increasing costs have already been absorbed and there is no other option? Sometimes, it’s either raise prices or close up..
In today’s uncertain economic climate, many small business leaders recognize the importance of developing and accelerating alternative engines of growth for the future. These new businesses, known as “Engine 2s,” use the scale benefits of the core business to grow faster than an independent start-up could. During downturns, companies make bold moves that enable them..
As the world continues to become more and more digital, it’s becoming increasingly clear that every company is, in some way, a software company. This is a sentiment that was first expressed by Marc Andreessen over a decade ago, when he famously said that “software is eating the world.” Today, we can update that statement..