@Wanted_2_Share@BigJohn043 Schools are about social interaction so alpha doesn’t address that. Also, family housing for less than $5m is hard to find so mid level people don’t want to move. We can’t find mid level/junior partner ppl to join our Miami office unless they have a connection to the area
@NihilarianZH@BillAckman@AlphaSchoolATX I think a lot of the kids going are neuro divergent kids. Thats what I hear it is in nyc at least. If so, that’s a tough social dynamic for normie families to want to opt into and a lot of the day is supposedly outside of academics.
@JesseTinsley@realconnerjohn does the business require capital to grow? Is there a risk of a fast second mover who can throw a lot of capital to win new customers and the smaller business gets overwhelmed by the well capitalized business
@DanielWolkowitz@davidmarcus Your point is strong but I’d guess profit margin for these businesses will compress quickly and heavily as barriers to entry fall and the marginal cost of additional customers is de minimus.
@roblarson@ClintFiore A key question with owner operated biz is how dependent sales relationships are on the owner
If key clients leaves once she does, it’s not worth much
I’ll add again that the OP wanted to address specific concerns outside of PG: your replies do not really address the issue
@roblarson@ClintFiore This is understandable but the OP said that he was willing to address individual concerns to ameliorate no PG on seller note
One can also look at a sellers note as a form of an earn out/escrow
@ClintFiore@roblarson Interesting: Should your clients rep to not having a significant decline from a major client or supplier within 9 months of close?
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The challenge for VCs that we’ve seen is that strategic acquirers usually want a few core people (acqui-hire)
Savvy founders (assuming they are the ones valued) can alter the terms of the deal via closing conditions so that they receive that value, not shareholders
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