How to Hit the Rule of 40 in Your Business
Do You Hit the Rule of 40? Have you heard of the Rule of 40? Since the mid-2010s, venture capital firms have used this rule of thumb to evaluate SaaS companies and other recurring revenue businesses. These types of businesses often operate at a loss in the early years while investing heavily in building their […]
Be Your Own Private Equity Firm
As a young investment banker, I grew up inspired by the legendary leverage buyout (LBO) stories of the 1980s. One of my favorites was Barbarians at the Gate, which chronicled the 1989 bidding war for RJR Nabisco. The deal ended when Kohlberg Kravis Roberts & Co. (KKR) “won” with a staggering $31 billion bid —nearly […]