What’s in the Stack?

• My Dream Acquisition is on the Horizon - Why Momentum is Everything When Raising Capital (4-min)

• What we can learn from Jefferson and Adams - The Founding Brothers. (4-min read)

  

The Power of Momentum When Raising Money - The Tennessee Deal

I'm currently on the verge of closing what could be the deal of a lifetime. It's a dream acquisition that's been on my horizon for a year, and now, it's almost within my grasp. Let’s call it the Tennessee Deal. 🤝

It’s a decades old home services company with an incredible brand and legacy. But what makes this deal even better, it comes with land. Lots of land.

Although I'm holding back on the specifics until everything is sealed — we've only got an LOI in place for now — the excitement is palpable, and the stakes are high.

I’ll be writing about this one a lot and will bring all details forward including dollar figures, deal structure, etc. once it closes. 🤞🏼

The process of raising capital is in full swing, and it's an adrenaline rush like no other. I have been on the phone all day today, I did the same yesterday. Talking to investors, getting a gauge of their interest and current capability.

Each call I make is more than just a pitch; it's an opportunity to build the momentum that's crucial for a deal like this. I find myself mentioning the deal in every conversation, sparking interest even outside my investor circle.

Momentum is critical.

Here are 5 things you can do to create momentum in any deal:

1. Talk About It All the Time: Constant communication is key. By discussing the deal frequently, you keep it at the forefront of everyone's mind, maintaining enthusiasm and interest.

2. Concentrate on the Good News: Focus on sharing positive updates and milestones reached. Highlighting the good news keeps morale high and fosters an atmosphere of success and inevitability surrounding the deal. You will need this too, to keep up your energy.

3. Call Everyone Regularly: Personal touch is incredibly effective. Make it a point to call each investor at least once a week. The aim isn't always to have a long conversation but to keep the lines of communication open. Even if they don’t answer, leaving a message or sending a text keeps you on their radar.

4. Show Progress and Milestones: Regularly demonstrate how the deal is advancing. Share any milestones achieved, no matter how small they may seem. This could include completing stages of due diligence, finalizing portions of the agreement, or securing new interest from additional investors. Whenever possible use visuals, photos of inventory and assets, pictures of the land, use the company’s marketing material, etc.

5. Leverage New Interest to Create a Sense of Urgency: When new investors show interest or when you secure additional commitments, share this news with existing and potential investors. This not only validates the deal's attractiveness but also creates a sense of urgency, suggesting that those who delay might miss out.

By implementing these strategies, you maintain a high level of engagement and enthusiasm around your deal, increasing the likelihood of its successful and timely conclusion. Remember, momentum can be self-sustaining; once you build it, it can drive the deal forward to its completion.

THE TENNESSEE DEAL

We're at a critical stage now, deep in due diligence, appraising assets, and narrowing in on a final price. Negotiations are ongoing about down payments, seller financing, and the terms. Emotions are high with the seller and his wife, as they may soon part ways with the business they built most of their life.

In these moments, I'm reminded of the sheer power of enthusiasm and momentum in deals like this. It's not merely about the financials or the logistics; it's about the collective drive and vision that turns potential into reality.

With the LOI phase behind us and due diligence underway, I'm racing against time, fully aware that we have about 30-45 days to transition from this high-energy phase to sitting down with the lawyers to finalize everything.

This experience is a vivid reminder of the importance of momentum in deals. It's a force that not only propels the deal forward but also amplifies the potential for success, turning what was once a vision into a tangible, exciting reality. The next few weeks are crucial, and my focus is unwavering: keep the momentum, fuel the excitement, and close the deal.

Stay tuned for updates. I can’t wait to share it with y’all. 🤠

Did you know that Thomas Jefferson and John Adams died on the same day, July 4, 1826. 🇺🇸

This day was the 50th anniversary of the Declaration of Independence, the document with which both men were closely associated. Jefferson was the principal author, and Adams was a leading advocate for independence.

Their deaths on such a symbolic date have often been noted as a striking coincidence in American history.

I have read a dozen books on both men, including all of their letters of posterity. My favorite is the book Founding Brothers: The Revolutionary Generation" by historian Joseph J. Ellis, published in 2000. 📚

I bring this up because as the political arena starts to fill up for the big match in November, let's all take a page from Jefferson and Adams. Their story teaches us the importance of mutual respect, listening to one another, and holding onto our principles, even when faced with disagreements.

Jefferson and Adams shared a complex relationship that evolved from friendship to bitter rivalry and back to friendship. Initially, they worked together harmoniously, united by their passion for American independence.

Jefferson, the primary author of the Declaration, and Adams, a vocal advocate for the break from Britain, were pivotal in shaping the nation's early direction. However, as the young republic developed, their paths diverged, leading to a profound political rivalry.

Their disagreement stemmed from contrasting visions for America. Adams, favoring a strong central government, and Jefferson, advocating for states' rights and a decentralized agricultural society, found themselves at the heart of the country's first major political divide.

There is a lot more to this story, including lies, political slandering, deceits. This clash of ideals led to a long period of estrangement, despite their once-strong bond.

Yet, their story didn't end with animosity. Encouraged by their mutual friend Benjamin Rush, they rekindled their friendship through a series of letters in their later years, showing that dialogue and understanding can overcome years of conflict.

These letters are a testament to their willingness to reconnect, share insights, and respect each other’s views, despite their past differences. 

They are well worth reading too. As you can actually see the bitterness begin to melt away as each man fully absorbs the other’s ideas and responds in kind. It’s nothing short of remarkable to witness.

This transformation in their relationship illustrates a powerful message, especially relevant today: the value of reconciliation and the strength found in respectful discourse. Their ability to move beyond previous disputes and engage in thoughtful conversation exemplifies how we, too, can work through disagreements.

It's a reminder that, while standing firm in our beliefs, we should remain open to dialogue, striving for a middle ground where mutual respect and understanding prevail.

As we approach the upcoming elections, let’s remember the example set by Jefferson and Adams. Despite their intense rivalry, they managed to rediscover their friendship and mutual respect through open communication. Their journey from allies to adversaries and back to friends underscores the importance of maintaining our principles while also being willing to engage with those who hold different views.

The point of their story is clear: even in times of deep division, there's always a path to understanding and respect. 🤝

As we navigate our current political landscape, let's keep in mind the lessons learned from these founding fathers. Their ability to reconcile and engage in meaningful dialogue, despite their stark differences, serves as a powerful guide for how we can approach our interactions in today’s politically charged environment.

To all my subscribers I can’t thank you enough for letting me write for y’all. If there is anything I can do for you or any topic you’d like me to cover, please hit me at [email protected], I will do my best to bring it here.

Finally, check out our new landing page for the private equity fund. I will be bringing all kinds of resources here. I made a course too for anyone looking to learn what I learned raising $100mm.