The Best Time for PE

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October 21, 2022

by a searcher from Dartmouth College in Los Angeles, CA, USA

While many businesses are bemoaning poor market conditions affecting their raise or high-interest rates eating away at profits, this downward spiral benefits our industry.

When you think about what is down--real estate, stocks, bonds, and gold--what do you have left: profitable businesses you can buy more cheaply with the slashed MRR multiples.

When I pitch someone on being a deal LP and they're on the fence, I lightly push back by asking what else do you intend for the cash that will earn a return. The deafening silence often gives away to a change of heart and a soft commit.

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Reply by a searcher
from Harvard University in New York, NY, USA
How much have prices or multiples actually contracted? Do you have any good numbers, studies, cases, etc... I could check out? Thanks!

Good luck with your capital raise!
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Reply by a searcher
from Dartmouth College in Los Angeles, CA, USA
Definitely. Send me a DM and I'll send over the tech multiple contraction in the private market examples, before and after, that I use as instructive in my deck.
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