Nick McLean (@nick4pillars) 's Twitter Profile
Nick McLean

@nick4pillars

Founder of Four Pillars Investors | Lower Middle-Market Private Equity

ID: 1347595100810072065

linkhttps://www.midmarketinsider.co/ calendar_today08-01-2021 17:24:55

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Recurring and repeat revenue models are gold. Buyers pay more for businesses with stable, predictable cash flow. Can you add: - Subscriptions - Maintenance contracts - Other recurring elements To your business?  Predictability drives value.  The more reliable your revenue,

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Growth is much more than increased revenue or earnings. It’s about making smart, strategic choices. Before you chase new customers or add products, see if your activities align with your core strategy.  Focused growth beats scattered efforts every time.  Sometimes, saying no

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Define your mission, vision, and values. Then actually live them. Think about what matters most in your business and frame your culture statements from there. Fluffy statements don’t help, but clear, actionable values guide every decision.  Mission and values are only useful

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Know your current state before you plan your future. You can’t chart a path forward if you don’t know where you’re starting from.  Track key metrics and be brutally honest about your strengths and weaknesses.  Use this as your baseline for growth.  Honest self-assessment is

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Alignment, intentionality, and accountability drive real growth. Everyone wants “growth,” but not everyone defines it the same way. Get your team aligned on what growth means, why it matters, and who owns each goal. That’s how you move from drifting to driving results.  When

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There’s a lot of criticism aimed at private equity. Especially when it comes to its impact on healthcare and accounting firms.  I get the skepticism
 Some PE firms do focus on financial engineering and over-leverage, which can hurt quality and stability.  But it’s not fair

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Don’t fall for the “Perfect Buyer” myth. Waiting for someone who checks every box can leave you stuck and disappointed.  The happiest sellers are clear on their priorities and flexible on the rest.  Focus on what matters most and be open to good opportunities. Perfection is

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Don’t sell a job.  Sell a business. (There’s a clear difference) If your company depends on you for everything, buyers will hesitate or discount the price. Build systems and a team that can run without you.  The more transferable your business, the bigger your buyer pool.

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Keep your numbers steady during diligence. A dip in performance (even a small one) can spook buyers and drop your valuation.  Stay focused on operations until the deal is done.  Transparency and a recovery plan are your best defense if you hit a rough patch. Buyers are buying

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It doesn’t matter what the gurus say.  Industry matters to buyers.  Some are more attractive than others.  That doesn’t mean businesses in less-desirable industries DON’T sell.  But stable, recurring-revenue industries command higher multiples.  If you’re in a cyclical or

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Working capital is part of the deal.  It’s NOT a bonus.  Buyers expect enough working capital to keep the business running post-close.  If you strip it out, expect a lower price or a lost deal.  Plan for this early and be clear about what’s included.  Surprises at closing

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In some business deals, there’s usually more players than the buyers and sellers.  If your buyer is using SBA financing, the SBA is a huge player that you need to consider.  Know the rules: - No earnouts - Seller notes on standby - Valuation limits Understanding these

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Valuation is more than “just a number.”  It’s about structure and timing.  How and when you get paid matters as much as the headline price.  Be open to creative deal structures, like earnouts or seller financing, to bridge gaps and close deals.  Flexibility can unlock better

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Most businesses will never sell. But it’s not because they aren’t good businesses.  It’s because founders don’t prepare for the selling process. This is a truth many founders can’t handle
 Focus on making your company more attractive, not just on what it’s “worth” today.