How to make your deal much BIGGER and achieve Deal Gravity

That's why Today at 10am PST: Witness the Launch of a Groundbreaking Deal                                                                                                                                                                                                                                                                                                                                                                                                                 March 14, 2024 | [Read Online]( [A newsletter about raising capital for early stage growth companies]( How to make your deal much BIGGER and achieve Deal Gravity That's why Today at 10am PST: Witness the Launch of a Groundbreaking Deal [fb]( [tw]( [in]( [email](mailto:?subject=Post%20from%20Pitch%20Anything%20Playbook&body=How%20to%20make%20your%20deal%20much%20BIGGER%20and%20achieve%20Deal%20Gravity%3A%20That%27s%20why%20Today%20at%2010am%20PST%3A%20Witness%20the%20Launch%20of%20a%20Groundbreaking%20%20Deal%0A%0Ahttps%3A%2F%2Fnewsletter.pitchanything.com%2Fp%2Fmake-deal-much-bigger-achieve-deal-gravity) Do you need $3mil for some kind of new project? Oh man, I remember those days of looking for those tiny amounts of working capital … and I don’t remember them “fondly”: It was pure hell. Looking for $3mil or less is a job just-one-step-above selling encyclopedias door-to-door. If you’ve ever heard the expression, "It's easier to borrow a thousand dollars than it is to borrow ten”, there’s a lot of truth to it. This is why I’ve always stuck to deals that have a valuation above $20million and preferably $50m. There’s a lot of reasons I love deals in this valuation range – one of them being it’s easier get a 5x return from a $20m deal than it is a $200m deal. But here’s what you need to know about larger deals: You get a strong gravitational force that pulls in money, people and resources: Deal Gravity As the name suggests, the larger (or more exciting) a deal is, the easier it is to attract capital, joint venture and affiliate relationships, key employees, as well as suppliers and vendors. Remember: small deals usually attract B-player investors that are trying to play the game of money with small checks (or no checks) And there’s nothing that attracts people to you more than a big deal where you’re consistently hitting milestones on time, and beating your original financial forecasts. Here’s what I mean… When we first started raising capital for my current Big Deal, this is what my pro forma projection looked like. 61 million of ebitda profit. But when you look at this you ask yourself, why no revenue for 2024 and 2025 in my forecast? That’s because I need a custom-built 500,000 sqft building with 70-foot clear ceilings which is not something you can buy or rent. You have to build it. And that takes 18 months. And even though I think this is the best deal I’ve done in my career so far… It’s still completely different from a typical tech company where you take customer “pre-orders”, then use that revenue to ship an MVP as fast as possible .… But in Manufacturing there’s no “MVP” or Beta-test like that. In a real (non-software) business you invest UPFRONT … And you ship REAL PRODUCT to customers. But there’s always a turning point in the deal where – all of a sudden – everything starts to fall into place, you hit critical mass, and inertia takes over. That’s when you hit DEAL GRAVITY and things start magically happening on there own. For example, here’s things I’ve completed in my Current Big Deal over the last ~90 days that have created Deal Gravity: - Site Selection Process Complete: Led by Ron Max and Stream Realty, I visited nine (9) potential factory sites in the Dallas/Ft Worth Metro Area, and made an offer on the best one for our deal. - LOI and Purchase Agreement completed for Dallas-area, TX Site: Signed LOI and are entering into a purchase and sale agreement for a 50-acre site to be used for the construction of my factory. - IP Agreement: In addition to the already disclosed technologies – see my last two emails - BioQuartz, Chromia, and Kreos-Plus – my technology partner, a 500M company, has agreed to license our company with additional and proprietary new advanced manufacturing technology that will be unique to our facility. - LOI for up to $100m in Debt financing: As part of our broader capital markets program, I’m going to open debt facility for our equipment needs. With the help of Wolbert Holdings, a corporate finance advisory firm, we’ve engaged with upstream debt financiers, and obtained the first non-binding LOI in a series of potential debt commitments for the project. - Purchase Order for high-tech prececision Manufacturing Equipment : As management of this deal I have signed a purchase order for up to $100m in precision manufacturing equipment. - I signed a lease document for an additional 170,000 sq/ft in Dallas: Because the new ground-up site build will not be finished until 2025 at the earliest, I’ve identified an already existing 170,000 sq/ft site to install up to four (4) manufacturing stations needed for the fulfillment of target revenue in 2024. And if that isn’t enough to get those greed neurons firing … It seems like every week, something new happens that continues to confirm my investment thesis and make the deal bigger, badder, and better. If you read my previous email about the Las Vegas convention I went to… Not only am I placing an order for 20,000 quartz slabs, I signed a purchase order for $26m of additional equipment based on my personal balance sheet. And as we continue to lock in purchase agreements for land, labor, and equipment… It gets easier and easier for people to say “YES! I want to be involved in this project!” THAT’S DEAL GRAVITY As more people attach their name to the project – either as a lead investor, major partner, or a key employee – the more likely it is that other people can follow this group of solid investors into the deal. Even better? As the deal becomes bigger, the more likely you are to get introductions to other key players in your industry because doing so will make them look good – and signal high status – to their network. And in turn, increases our gravitational pull in the market. This is the power of having a big deal in market One of the key things I learned from my mentor Russell is the value of always having a big sexy deal in market – it sucks new and interesting people into your orbit, and they are often interested in multiple deals off the back of your big one. And if you want to see my “big deal” that is vacuuming up capital right now… [Make sure to block off TODAY at 10am PST to check it out.Â]( While I obviously can’t promise you’ll see a 4x return in ~12 months like my last deal… If you’re looking for a true institutional-quality private equity deal that HAS NOT taken in and kind of “controlling” bank money now [Click here and join me at 10am to see what I believe is the best deal I’ve ever done.]( No, I’m not going to send you a replay of the meeting. If you want to see this deal, you need to show up to the call. See you on Thursday. -Oren [fb]( [tw]( [ig]( [yt]( [in]( Update your email preferences or unsubscribe [here]( © 2024 Intersection Capital, LLC 2443 Impala Drive Carlsbad, California 92010, United States [[beehiiv logo]Powered by beehiiv](