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The Changelog: Software Development, Open Source

The Moneyball approach (Interview)

5124.011 - 5146.694 John Nunemaker

So one, they charge a management fee to the business based on EBITDA. So like if, you know, they buy businesses that already have good profit margins, they take a slice of that profit margin and for everyone who's in the management group. And then they'll also do, you know, like, whatever first 8% preferred return in the event of a sale, you know, goes to the investor.

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