Operation Takeover Corporate

Carl and Jonathan have a slight argument on this episode. Tell us who's side you lean towards.

We fast forward to 2014 and Jay is flush with cash. He's fresh off building a new venture in RocNation and as the music industry makes a shift he realizes that he has a problem... he needs to control his distribution. His solution? Join the streaming wars by buying his own streaming platform.

Buying a company is never an easy process. First and foremost, you can only trust sellers so much due to the fact that they have their own best interest in mind. If you're dealing with a public company, the sellers likely have a fiduciary duty to their shareholders. As a result, you really to inspect every part of the business you're buying and you also have to make sure that you're buying it for a fair price.

We recently saw this with Twitter and Elon Musk. Elon Musk made an offer, Twitter accepted it. Elon DID NOT do his due diligence and found something he didn't like which affected the price. Now he wants to back out of the deal and either has to pay a steep break up fee or worse... he has to buy the company at the offer price anyway.

Don't be like Elon. Follow these key takeaways.

Key Takeaways:

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Know your thesis. By defining your what and your why you can move with more conviction and be more critical of new facts.

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Never underestimate the power of diligence. Knowing every part of your business allows you to know exactly what you're buying and you'll also know where the bodies are buried.

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Vision always looks like delusion before you win. Believe in your vision and the facts that you put together because the public (or just other onlookers) will look at you crazy. You only look like a genius when you become successful in your venture.

As usual, don't be stingy with this, pass it to the homies.

With love for the dilly,

Carl & Jonathan