Ado Muminovic

Well sure, lawsuits happen all the time, but a material lawsuit may be 1 off. If we use Sami’s example, the company probably does not intend on a lawsuit of that magnitude to occur again (hopefully have taken remediate action to prevent in the future), so they would not bake that into their ‘normalized’ EBITDA - leading to an adjustment.

@SamiRafi1 But if I am buying the stock of the company, I have to partially assume that another lawsuit will potentially happen again. It's like changing your family budget for a one-time vacation, and you end up taking one once a year.

Can someone explain adjusted ebitda to me like an idiot? Its confusing a company can "adjust" things.

@MichaelAArouet Our spending.

@ShaanVP If you were able to co-found a business with only one of your guests, who would it be and what kind of business?

We're doing an "Ask-Us-Anything" episode on wednesday. Give me your best questions! we'll shout you out on the podcast

@BoringBiz_ Yes, if you have a long investment horizon (ie. target date fund in 20+ years) then it is a no brainer. I also imagine these would be accredited funds that would make their ways into the 401ks (hopefully).

If you could buy private equity in your 401K, would you do it? On one hand it’s good diversification if you are okay with illiquidity On the other hand, this is being offered at a time when the entire industry is struggling with capital raising and exits due to high rates

@unusual_whales ESOPs fix this.

Larry Fink of BlackRock, $BLK, has said that retirement is a benefit increasingly limited to Fortune 500 employees, and widening the scope should be a ‘national priority’

Great thread - one alternative worth considering is selling to an ESOP. While these transactions don’t typically result in 100% cash at close, they can address many of the concerns raised here—especially when it comes to succession planning, maintaining the firm’s legacy, and keeping employees motivated through ownership. In some cases, an ESOP may even provide a more sustainable and rewarding exit than a traditional sale.

ISSUE 4: LACK OF EXIT OPPORTUNITIES Typically, after a PE fund has operated a portco for 5-7 years, they generate liquidity by: 1. Sale to strategic buyer (bigger competitor) 2. Sale to financial buyer (bigger PE fund) 3. IPO None of these work for accounting firms. (23/28)

Private equity is coming for the accounting industry. They’re rolling up practices, cutting costs, raising prices, and doing what PE does best. There’s just one problem: It’s not going to work. They’re lighting capital on fire, and they don’t even realize it. Let’s dig in!👇🧵

@0xgaut The same can be said for The Wolf of Wall Street in finance lol

sometimes I wonder how much value The Social Network movie created by being a watershed event inspiring an entire generation of founders

@thesamparr I work in the investment banking space and deal with these financial analysis topics on the reg. Hmu via DM and we can jump on a call I can try to break down concepts as simple as possible.

I'm horrible at finance related things as they're related to business: - how use/think about debt - reading financial statements - topics like net working capital and basic biz finance stuff Would love to take an in person class. Anyone know of something cool in Austin?

I like the idea of investing in your expenses. One thing - EBITDA is a great metric and highly used for valuation purposes as a proxy for operating cash flow, but what about investing in good companies with high revenue and low EBITDA? I’d argue that you can buy at a discount and then work on improving operations and margins. Lots of companies that make a lot of money but don’t know how to manage expenses. Also depends on how much time your willing to invest.

This is one of the better thread hooks I’ve written.

@enjoy0r This is light work for you. I imagine 100 push ups in the next 2 weeks.

Week ago topped out at 25, today blew through 40 with very little struggles How long before we’re at 60 Solana is the Chad L1

@Patticus True. It’s probably less about actually having all those days off and more the flexibility and option to take time off when you want and not be confined by “X” number of PTO hours. Reasonable people know that you shouldn’t overdo it.

@thesamparr The analysts are thinking too short term.

Reminder: no one knows anything and we're all morons.

@Culture_Crit Expectations

@ShaanVP Rush Hour 1-3

Friday night - need a great show or movie. What’s good right now? Just finished hijack (loving it so far) - what’s next?

@sweatystartup I played with a 90 year old once. He didn’t walk the 18 holes, but still amazing to see.

A lot of 50 year olds get rolled through an airport in a wheelchair. One of my life goals: Be healthy enough to walk 18 holes of golf in the Georgia summer at 75 years old.

@awilkinson Summed up perfectly

Pretty much every entrepreneur I've talked to, no matter how simple and wonderful their business is, thinks it's the worst, most stressful dumpster fire, that could go out of business at any moment. Everything is hard behind the scenes.

Overthinking is the mind click-baiting itself