Pretty cool to hit the $1 million milestone on my 30th birthday (30M; married no kids), something I have been working hard for since graduating college in 2018 with ~$50k in student loan debt.
I have an idea and want to hear the community's pros and cons to the strategy / business model.
My background: VP in MM Industrial PE. 7+ years of experience executing industrial manufacturing and distribution deals
The thesis: Lower middle market / middle market businesses owned by family offices, founders or PE firms want to do strategic M&A to enhance their value proposition, recognize multiple arbitrage, product line card expansion, geographic footprint expansion, etc. However, the CFO doesn't have the bandwidth, know-how and / or ownership doesn't want to hire a full time Corporate Development professional(s). The fractional CFO is a very well-known commodity, but I haven't heard much about hiring a fractional Corp Dev person / team to seek out and execute targeted M&A.
Service Offering: M&A pipeline creation, prospecting deals, relationship building with intermediaries in the market and once a deal is under LOI - thesis development, managing service providers, debt / equity capital raise, merger modeling (three statements, debt schedule, cap table, etc.), memo creation, integration planning, etc.
Cost: A monthly fee / retainer to the company plus a transaction success fee (% of EV). Less costly than hiring a full time Corp Dev team or a buy-side search firm while getting experienced private equity talent quarterbacking transformational deals on the Company's behalf.
Thoughts?
