LOI Prices vs. Closing Multiples: The Gap Is in the Tails
Two years of LOI prices on deals presented to us (n=272) against Axial's closed-deal multiples: the medians match, the tails don't.
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Showing 8 posts with tag: due-diligence
Search Fund Terms: What an LP Nets at 2x, 3x, 5x
The same exit pays an LP a different amount depending on the structure. A waterfall model at 1.5x, 2x, 3x and 5x shows where terms matter and where they don't.
What SBA Loan Charge-Off Data Shows About SMB Acquisitions
SBA loan-level data shows which acquisition loans charged off and when, but it cannot measure whether an acquisition failed or what its equity investors lost.
Broken Searches: What Acquisition Rates Leave Out
Understand broken searches, distinguish acquisition rates from investment losses, and learn which population and source questions to carry into further reading.
Search Fund PPM: Read Alongside a Co-Investment Memo
Read a search fund PPM alongside a co-investment memo to distinguish disclosure, assumptions and evidence, and clarify open questions before making a decision.
Search Fund Returns vs Private Market Benchmarks
Read search fund returns vs private market benchmarks with the limits intact. Compare populations, periods and measures before drawing portfolio conclusions.
Search Fund Study Comparability: Check the Sample
Check search fund study comparability before using return figures. Identify populations, periods, metrics and exclusions to keep research claims in context.
Why Top VCs Are Buying Small Businesses (And What It Means for Valuations)
Andreessen Horowitz, Lightspeed, and General Catalyst are pivoting to small business buy-and-build strategies. Here's why venture capital is entering the SMB market and what investors need to watch for as valuation conventions change.