Bonus

Should one be happy to see their bonus or should one think how is their business relative to others. As much as I try to think about the latter, I think I belong to the former category. Happy and content this Diwali :)

Middle market private equity

So I got introduced to middle market private equity pretty late in the game. By game I mean my MBA at Haas. There are some things that immediately suck you in and learning about middle market PE play was one of them. In John Brennan of Silver Lake Sumeru words "The ability to add value via operational experience" is what differentiates them. There is something magical in those words...operational excellence is one of them. How exciting it is to look at a business closely and fix it. I am sure I am not alone who gets excited by all this but the real question is, who is going to bet on me?
Other conclusions were, when you evaluate a business understand what they call as their accounts receivables, revenue recognition methods and importance of using net sales vs gross sales. All this is music to me. What was even more interesting was that as a PE guy one should always question all the assumptions as you evaluate a business, something my previous boss at work always stressed tremendously.