How Smart Investors Find and Create Value in Deals
How Smart Investors Create Value in Every Deal
Investors, fund managers and deal sourcers who want short, practical ideas for finding and improving deals that other buyers pass over.
What this talk covers
Take meetings even when a deal is not an obvious fit, because the conversation can turn into a valuable relationship later. That was one of several short pieces of advice from a panel recorded live at the Beverly Hills Investor Club Summit for the Family Office Podcast. Each panelist was asked for one tip on finding deals that other people miss.
One guest said every deal that arrives is broken, so investors should look for ways to add value, such as a new management team, a rethink of how the deal is put together or a fix for overpaying. Kyle of Winword Equity looks for repeatable systems inside a business rather than trying to pick a standout founder. Another speaker pointed to gaps and bridges, such as the link between India and the US.
What stood out
- Take the meeting anyway. One guest said much of due diligence and deal finding takes time more than money. A short Zoom or video call on something of small interest can still lead to a valuable relationship, even if the deal is not for you.
- Assume every deal is broken. One guest told the audience to treat each deal that arrives as broken. The task is to find what is missing, such as a new management team, a rethink of how the deal is put together, or a fix for overpaying.
- Add value or be a commodity. The guest said that investors who are creative and add value can make deals happen. Without that, they are just another commodity.
- Back systems over star founders. Kyle said less than 1% of the population are the standout founders investors hope to find. He looks for repeatable systems in a company, such as EOS, Culture Index hiring, and proven tools in the tech stack.
- Look for gaps and bridges. One speaker said the money is in the gaps. Their team focused on being strong at the bridge between India and the US, and also built a network, since deals may need a range of helpful contacts and sources, not just capital.
In their words
"So all the deals that come to you are broken. None of you guys are billionaires. So assume the deal is broken."
"It's too hard to identify the one person that's going to be the unicorn. It's systems and process that will beat that every single time."
"If you make people wealthy, they will love you forever. Nobody's used to that."
Key facts
- Panelists were each asked for one deal-finding tip in 30 to 45 seconds at the Beverly Hills Investor Club Summit.
- Kyle said less than 1% of the population are the standout founders investors try to identify, so Winword Equity looks at systems such as EOS and Culture Index.
Sources
From Richard C. Wilson's Centimillionaire Strategies YouTube channel: How Smart Investors Create Value in Every Deal. Quotes come from the video captions, lightly edited for readability. Figures are the speakers' own estimates and experience.
General education only. Not legal, tax or investment advice.
Talk to a securities attorney to explore options around deal structure terms, capital stack design and equity stake terms. Do not use AI to write your own legal agreements.
Related questions
- How does a distribution waterfall work?A distribution waterfall is the order in which a deal pays out cash.
- What is a promote and how is it calculated?A promote is the back end profit that goes to the sponsor or operating partner after the investors who put in the money have received their preferred return.
- What is preferred equity and how does it work?Preferred equity sits in a deal's capital stack between the bank loan and the common equity.
Questions about this video
Why should investors take meetings on deals that are not a fit?
One guest said much of due diligence needs time more than money. Even if the deal is not for you, the conversation can lead to a relationship that is valuable in the future.
What does it mean that every deal is broken?
The guest said investors should assume each deal that comes to them has a flaw. They then look for ways to add value, such as a new management team, a rethink of how the deal is put together, or a fix for overpaying.
What does Kyle look for in a business?
Kyle looks for repeatable systems the company already uses. His examples were running EOS, hiring with Culture Index, and using tools that have worked in that industry or a nearby one.
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