Jonathan Grzyb (“Gribb”)

@ryanfreedman_ Your post popped up as I’m sitting in a 20th floor watching a traditional window washer thinking how scared shitless I’d be doing that- crazy it’s taken this long…

Game changer….World’s First Window Cleaning Robot Reports to New York City Skyscraper Transforming the Industry Globally | Business Wire businesswire.com/news/home/2024…

@bhargreaves Amen!

@Slackwatercap Great summary.

Brad Jacobs latest platform $QXO (formerly $SSNT) will be an interesting case study. Jacobs Private Equity just closed their transaction to inject $1B into what was a micro cap company with a $20m mkt cap to give themselves a new publicly traded platform/currency to go out and acquire building materials distributors with. From my quick read of the latest SEC filings, here's a summary of what appears to have happened so far: - The company completed a 1-for-8 reverse split so 5.3m shares became 664k shares outstanding - The investor group then injected $1B in cash for $1B in preferred stock and warrants - $1B in preferred stock is convertible into 219m shares of common stock at a value of $4.566 per share (219 x $4.566 = $1B, which makes sense) - The investor group also got 219m warrants to buy 109.5m shares at $4.566 per share, 54.75m shares at $6.849 per share, and 54.75m shares at $13.698 per share - Assuming the preferred is converted and all of the warrants are exercised, the fully diluted share count of the company would be 438.664m (664k + 219m + 219m) - The warrant exercise would inject an additional $1.6B of cash into the company (109.5m x 4.566 = $500m + 54.75m x $6.849 = $375m + 54.75 x $13.698 = $750m) - Thus, the company would have $2.6B in cash with no debt or preferred stock outstanding - Since the transaction was announced last December, it's completion last week, and through today the stock has gone from a split adjusted price of $28 per share to $240 per share (!) - The warrants and preferred stock are now are DEEP in the money ($4.566-$13.697 vs a $240 market price) so the correct way to look at the stock is on a fully diluted basis as if the preferred and warrants were converted - With 438.664m pro forma shares x $240 per share, the company currently has a pro forma market cap of $105B vs $2.6B in adjusted cash and they've completed no acquisitions yet and the company has no revenue/cash flow (!!!) - The small publicly traded float representing only approximately 0.15% of the fully diluted share count (!), complicated deal structure, little available information, and a celebrity sponsor with a large following appears to be causing a massive squeeze pushing the stock price to extremely high valuation levels. I have no position, but buyer beware! If you think you're getting in early on Brad Jacobs' next platform, you appear to be paying about 40x what Jacobs and his team paid. And they haven't even completed one acquisition yet! It will be interesting to see how this plays out, but it appears that Jacobs and his team will do just fine! Let me know if I'm missing something here!

I lost my blue checkmark. While it’s gone, let’s do an experiment and see how much it matters: Like, comment and/or retweet and let’s see how how many impressions this gets relative to my follower count. Go!

@Lawyer4Deals You’re an animal!

Your QofE came back and the deal is on? Here’s how the next 7-10 days will go with us as your lawyer on the deal: (1) We will generate the purchase agreement within 72 hours. Days 1-3 Steps 2-8 below:

@DanielSLoeb1 I’ve learned a ton from @TheLeanGuy - an amazing coach / advisor

My test of almost any exec is whether they have studied DBS and how they infuse kaizen (continual improvement) into their culture and processes. A couple of my biggest business failures are not investing in Danaher alumni who went on to run GE and Ingersol Rand.

America, we have a problem. According to the government's own data, individual homebuyers have outmuscled investors over the last eight years-- gaining market share and pushing up the homeownership rate to some of the highest levels in history outside of the bubble / GFC years. And yet we have a shortage of for-sale homes, driving up prices. So, naturally, we need a villain. A boogeyman. Can't blame individual buyers who own more homes today than ever and whose market share is near record highs. That won't be popular. Can't blame small local investors who own >95% of single-family rentals. That won't be popular. So here's an idea. Let's zoom in on that tiny sliver on the charts showing ~3% of single-family rentals owned by large investors. And even though this is a diverse group including publicly traded REITs based outside New York, let's use terms like "hedge funds" and "Wall Street" to paint a scarier sounding villain character. And instead of looking at acquisitions AND dispositions to show net flows often negative for investors since 2016, let's mislead people by looking at just acquisitions. And let's definitely not mention the facts from academic studies showing how rentals help diversify exclusive neighborhoods with renters who couldn't otherwise afford to buy there. Or how studies have shown rents in neighborhoods where investors are limited have risen more than those that didn't have such limitations. Or how some investors have rehabbed old crumbling houses into better shape, with many flipped back to individual buyers. Instead let's pick a few isolated anecdotes of "landlords" behaving badly. Easy. (BTW kudos to the WSJ for mentioning many of these facts and taking a balanced approached to story. My comments are directed toward those in power who continually spread these myths, not the article.) Facts are distracting. Facts don't help sell the boogeyman narrative.

@jefielding Any military experience across the 12?

I interviewed 12 very successful founders about how they developed leadership skills? The answers surprised me…Nope, not HBS, McKinsey or training programs. The answer was that they had to organize volunteers at a young age. Some led church groups, student orgs, local activism, science fairs or local sports teams. All had to get other people to do things without any real authority and no comp.

@ClintFiore My 9 y/o is thriving in competitive acro- it’s given her confidence that I didn’t realize she had and is teaching her a lot about teamwork, work ethic, and commitment. It’s been totally worth it for us.

My youngest daughter (11yo) is my best athlete. She's about to try out for an elite competitive cheerleading team that's gym is 5 mins from my house that some people drive their kids 1-2 hours to go to multiple times per week. I'm guessing 95% chance she makes the elite team. She's good, a standout in her tumbling / acro classes, and she wants it bad. Just discovered how much it costs. 😖 Would be a lot more than I've ever spent on any of my 4 kids with any activity or sport, which doesn't seem super fair, yet none of them had this level of drive/talent/opportunity so far. Can swing it but would take some sacrifices and tradeoffs. Still kinda on the fence. Will probably say yes. Already agreed to let her go tryout and to decide after. Would be pretty heartbreaking to tell her no if she makes it. Any parents of multiple kids have any wisdom on how you think through this situation? Not wanting to hold back a talented kid from pursuing their dream/passion and not wanting to show massive financial favoritism to one kid vs the other 3. (this cheer team would cost more than the others' extracurriculars all combined)

@pinpulleddrmf @ChandlerReedSMB My heart rate goes up just looking at that thing.

Increasingly convinced that health is the highest ROI investment out there: - Saunas - Massages - Cold Plunges - Organic foods - Gym memberships What else am I missing?

@hitsamty Yikes. Repatriating their $11M note and jamming the LPs down into a riskier position in the stack with more $$ at risk. Using the word “alignment” in the doc is ridiculously ironic.

"We (Joe & Frank) will consistently support you and our other investors through both favorable and challenging times." Multi syndicator Ashcroft Capital put out a capital call last week 📢 • 20% of initial LP investment • $48M in pref (unsure from who) - capped at 12.75% • Refi of 3 assets now, sale/refi of 5 others in 25/26

@MarginCFO High output management (Andy grove) or The Advantage (lencioni).

Alright book nerds, I’ve read both Traction and Get a Grip. Found both immensely engaging and helpful. What should I read next (ideally something in that same wheelhouse that pairs well with those)? Rocket Fuel? What the Heck is EOS? Something else?

@alexdanilo99 @realEstateTrent Good one ☝️

Coronado, CA - 15 mins from downtown San Diego and the airport, best beach in America, no crime, no traffic, golf course, road biking, cute shops. Big Navy base where the SEALs train. Hotel Del is where presidents stay and where the Wizard of Oz was written and that makes sense considering it feels like a fake town.

If money’s no object, what are some of the top suburbs in America? Palo Alto, CA and Greenwich, CT have to be up there.

I think I I have a pretty unique view on the pandemic and inflation. Why? Because I never stopped traveling. I got Covid in June 2020. Was awful. 104 temp for two days. Hit me while driving to Wisconsin. Slept in the car at one point. Didn’t announce it on air because what’s the point. Anyway… After that I went to or through 21 states in 2 years. We covered important stories and the election by flying with massive safety protocols and driving alone. At one point I was one of 3 people on a plane. Did 3,500 miles over the election in a car solo (by the way, nailed it in our coverage on @CNBC about counties that could flip. I think we got 4 of 5 correct). I found that much of America didn’t shut down. Restaurants and bars packed. Many still going to offices. Florida had 2 hour waits at some restaurants in early ‘21. Car sales soared. Housing too. Personal note: I would get home from a trip and my wife would send me to the basement for a week to keep the family safe (thank you home TV studio and the network caring). I probably took 100 PCR tests. Yet the government kept stimulating the entire time as if everyone was in the same lockdown mode as DC, NYC or LA. Free money everywhere. New cars lined the roads. People bought boats off of PPP loans. Clearly fraud was rampant. I get they couldn’t target the stimulus by region. And it’s not a judgment on protocols or reaction to the awful pandemic. It’s merely what I saw on the road (along with my brave and great crews .. they would say the same). Much of that money saved businesses that would have gone under. I commend DC for quick and decisive action. Bipartisan urgent reaction was needed. But to throw trillions randomly at an entire economy when half the nation never stoped operating at full steam was certainly going to have long lasting impacts. And here we are. Inflation will remain hot for a while.

@ClintFiore Go @KHendersonCo - well deserved.

Kevin's an amazing dude and I'm super proud to call him a friend. Here's a little thread about his background if you don't know him yet.

@ClintFiore Great share @ClintFiore

18 Ways Sellers Inflate Asking Prices on Small Business For Sale 🧵:

@girdley This is me….but I’ve never heard it described so clearly- going fishing, running, biking, golfing, walking, hiking, skiing, etc etc etc - sign me up! Small group dinner with interesting people- love it! Large event with lots of small talk- no thanks.

A huge unlock was learning this about myself: I hate cocktail parties and big conferences. I know some people love them. But.. Unstructured socialization defines my personal hell. -- I used to beat myself up about this. Then I learned to try to win with who I am.

WSS: Question - Does it matter if it is a stock sale or asset sale? Bruce, can we talk about asset allocation in a SMB Acquisition Transaction? What might be the tax consequences and should I be allocating for this? I'm glad you are considering these issues. Ready, set, go!

Never underestimate credibility- @sbabmarks has built a reputation of credibility that precedes him. He is a man of his word and does what he said he’d do. In our case it was getting a big pari passu loan thru commitment last week. Thank you Bruce!!

@Lawyer4Deals Yes! I like this better.

Dropping anonymity and going all in: Many of you have hired me to serve as your M&A lawyer to help you buy or sell a business. And others to represent their company in day-to-day legal matters. Time I put the same trust in this community: I’m Rob Fafinski. More👇.