U.K.-based Nathan Winch started his career as a private equity investor after selling his first company, Winch Pharma, in 2017.
Since then, Winch has acquired over 20 businesses, with a focus on logistics and infrastructure companies.
In the latest installment of Built to Sell Radio’s Inside the Mind of an Acquirer series, you’ll learn how to:
Understand how an investor structures an acquisition.
Build your management team to avoid an earn-out.
Dodge the most common blunder made during due diligence.
Avoid turning off an acquirer during the selling process.
Prepare your company to be acquired.
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More About Nathan Winch
Having built and sold multiple companies in medtech, SaaS and FMCG – Nathan’s main specialties include concept commercialization, M&A and horizontal integration.
Now investing in private equity and debt instruments, acquiring groups of companies in the transport and infrastructure space.
Definitions
Earn-out: Earnout or earn-out refers to a pricing structure in mergers and acquisitions where the sellers must “earn” part of the purchase price based on the performance of the business following the acquisition. Source.
Due-Diligence: Due diligence is an investigation, audit, or review performed to confirm facts or details of a matter under consideration. In the financial world, due diligence requires an examination of financial records before entering into a proposed transaction with another party. Source.
Limited Partner (LP): A limited partnership (LP)—not to be confused with a limited liability partnership (LLP)—is a partnership made up of two or more partners. The general partner oversees and runs the business while limited partners do not partake in managing the business. However, the general partner of a limited partnership has unlimited liability for the debt, and any limited partners have limited liability up to the amount of their investment. Source.
General Partner (GP): In the context of private equity (PE), the general partner, or GP, refers to the PE firm that manages a private equity fund. These funds are usually set up as general partnerships with the third party investors being the limited partners and the PE firm acting as the GP. In addition to raising the funds and administering the daily operations of the fund, the GP is responsible for identifying and closing on investments, assisting the company management teams in maximizing value, and liquidating investments so distributions can be made out of the partnership to the limited partners. Source.
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