Investor Strategy Call – July 19th, 2021

Speaker1: [00:00:03] That’s record, yep.

Speaker2: [00:00:08] Yeah. And so. Um, that’s one thing I wanted to follow up on, and then something else, something else, would I have to talk to you offline about that I’m working on? So. But I don’t have any other questions. Can you pull in the. Script, because I think things have changed in the room in the environment because I was trying to look for it earlier today where you had a number of procedure for the VA folks.

Speaker1: [00:00:43] Oh yes.

Speaker2: [00:00:45] Yeah. And how to use that properly because I think things have changed or a lot of them have been reorganized. I guess so.

Speaker1: [00:00:53] Got it. And yeah, and the funny thing is, is the yeah, the conversations. Yeah, I’m actually discussing this with Ali Ali after. And yeah, we’re actually willing to once a week, once or twice a week, just fill in the discussion with either extra extra questions. I mean, he’s been on Wall Street and he’s worked on a thousand transactions. So I think bringing him on the call may be a next step and we’ll look at doing that next week. So, OK, so then the scripts. So this is the commencement, the outreach right and the getting started. So, OK, here’s the the agencies, and then after that, the inspection bear with my own. Set up. Ok. So your question was how to get that initial script going. Yeah. Got it. Yeah. So then that one is the decision is centralized on the CEO of the company or the partners of the company and so on. And so the script that we recommend is generally we have a certain script. We recommend actually and we actually pull this up right now. Yeah, and bear with us, we’re we’re actually working on replacing some of the videos, and so some of the quality may be a bit lower than usual. But yeah, I mean, the purpose is context. One of my associates and I, we see that we saw your companies information that so and so waste because as I was at a show, I was at a boutique investment bank before hopping on raises. And so this is the script that we used to pull a lot of investors in.

Speaker1: [00:03:11] And so readability is actually pretty low because we’re still updating this video. But let me work on getting I think we have it at the beginning, like way back, way way back. Uh-huh. Yes. Yeah, so all it is, and we’ll make sure that we can go back and forth on this, obviously, but then, yeah, the first step that we saw that has some good success. And so this is when you don’t have time to custom to hyper customize. It’s it’s like building the trust. For example, one of my associates and I pointed out either a mutual connection or something like that or we saw this new article you posted and we saw something that nobody can copy and paste. And, yeah, so podcasts with believable people, that’s one of my solutions that Jay put that there, but that’s really just building authority. It’s like you have, for example, in your your company’s case and its experience with JPMorgan, for example, VP, you know, that type of will get them to take you seriously. Like, you’re not just some new people or you’re some child or so on. And then next, we saw something we saw that performed really well and seen the amount of transactional experience that you have. For example, Ali, when I talk about him, he mentions how he did 19 hundred transactions throughout his career. And so these two of things. Anything experiential. And you actually I believe you already highlighted this in your your one page. So just a simple line introducing yourself in that sense.

Speaker1: [00:04:49] And then, yeah, and then here’s like the quick pitch. You know, a lot of it is more like inquiry based that we saw it gets better. It gets higher response rates because rather than say, Oh, know you do like fund my company, you see that a lot of the inquiry based questions seem to perform a bit better amongst the other members. And yeah, just like simple, asking for a call is simple, typical, you know, asking for or trying to reduce resistance here. Currently, things are great in the sense that it reduces the back and forth. But understandably in our industry, not many people, many people prefer the back and forth. And so it’s a ways we usually don’t force any link on anybody, especially how many people use outlook and and especially in the financial sector, people don’t like clicking links that they don’t recognize. So we just leave it as an option or something in a signature. But we just say when when we work for a call and sometimes people that are spending on your iPhone is essentially my iPhone, you know, builds that softness. And one thing that we did this is how we actually built our investment in a signature over email after sending a ton of emails. A lot of people we actually had to through our WhatsApp group and we prevented everyone. I went in and that created our mastermind over like a year and a half. So this is what we did, and we can go back and forth and run a few experiments.

[00:06:22] Ok. That’s. It.

Speaker1: [00:07:00] Just on. Yeah, just on standby in any further any discussions or questions. I’m just.

Speaker2: [00:07:18] Look, this is good. I’ll check that and let you know if there is any further questions.

Speaker1: [00:07:27] Well, fantastic. Yeah, I believe Abdul and Caesar, they both used to think in the last few last two or three weeks they used this one. Yeah, I mean, it gets results is just a matter of testing. It’s and and obviously the more hyper personalized, the better. But understandably, when there’s a lot of manual work, then either delegating it out to get somebody to customize it more or just going more broad like can save time. But you know, as you know, is this one one first impression? That’s it. If I see Kenneth here as well.

Speaker3: [00:10:29] I know you guys are talking and then I hit the wrong button. I lost you. So when I came back in, there’s no sound, so I just want to make sure you’re still going.

Speaker1: [00:10:40] Oh, no worries, no worries, no worries, Russian worries either way.

Speaker3: [00:10:45] Ok. It’s.

Speaker1: [00:11:44] It looks like it looks like we were just talking about Ali. Ali is plan as well and yeah, I’m going to allow him to speak and when he wants to speak is usually usually just paying as you speak right away.

Speaker4: [00:11:58] Hey, what’s happening?

Speaker1: [00:12:00] No, not much, not much. Is this the standard whole Q&A call, and we also share any insights that can help anyone in the whole process here.

Speaker3: [00:12:09] Got you.

Speaker4: [00:12:16] Did you want to expand on that weekly Q&A thing?

Speaker1: [00:12:22] Absolutely. Just one second. The. If not all it is, because. Yeah, because what’s happening is that oftentimes we’re getting, you know, we have two sessions, one today and one on Wednesday, and sometimes the clients say they’re good on their own. Sometimes they would like to call it to answer any questions about what is the investor feedback, any extracting any value that they can and sometimes what happens to is, you know, I mean, the members, because it’s not a student teacher relationship, it’s a membership. So what happens is that sometimes the members, they have new insights for others that that can help them solve your problems. And so yeah, this generally this method and then we upload the recordings to community every month.

Speaker4: [00:13:28] So how many people do we have on the call today,

Speaker1: [00:13:33] Today, today is just Abdul and I believe, you know, they also like just sitting back and listening in case anyone comes on. So.

Speaker3: [00:13:47] Ok, nice. Nice.

Speaker1: [00:13:49] And I guess since we hear we’ll be relevant is, you know, Abdul is actually inquiring about if we can come up and we still have to work it out with some ideas for coming up different topics. Yeah, lots of secret questions using self-serving investment bank. So anything that could offer values, people like Abdul A-Day and that sort of thing. So.

Speaker4: [00:14:22] Yeah, that’s good. So do you guys have any feedback? Did you want to start on a specific topic?

Speaker3: [00:14:35] Not do you guys can hear me?

Speaker1: [00:14:37] Yep, we can hear you. Yeah. I’m not even sure if Abdul I think Abdul was when he’s at the mic or

Speaker3: [00:14:45] Here as well. Ok, that’s yeah. So this is recording, right? So it’s going to be

Speaker1: [00:15:00] Yep, we’re we’re live right now. Yep.

Speaker3: [00:15:01] Ok, nice. Ok, good. Good. That’s good. Yeah. So essentially like the objective of these weekly calls, as you stated, right? Like it was just a feedback platform know outside of just market feedback and stuff like that, like which you guys would have to undergo some of the clients that are solidifying the models of, I guess, most of the businesses that are out there. Like we see a lot of deals, you know, from a single family office perspective, we see a lot of deals and obviously, like a lot of people are pitching their structures and their transactions based on what they feel is the right appetite. And no matter how many times like we have auditing done on those type of transactions per, say, market feedback, yeah, for sure. You can always have like, for example, myself and Brian and not to, you know, this gentleman, I’m talking about one of our family offices here. You know, we’ve seen a lot of people doing crazy deals like SPACs are chasing crazy companies, unrealistic yields. And, you know, they’re spending money like dumb money, right? Not necessarily intelligent capital. The objective of this is like alignment of interest with what the market really needs per business model. I think that’s important. It’s good to have an internal team audit the actual financials and the pitch deck looks. And what are some of the representing pieces to that data room and what probably is missing or what can be enhanced. But keep in mind the model right there has to be an appetite. You know, the biggest thing is that

Speaker4: [00:16:33] I think that there’s a there’s a feedback that

Speaker3: [00:16:35] Also comes indirectly from,

Speaker4: [00:16:38] You know, news and things that are being casted on the investment banking industry that I believe would be an ideal thing if we can do this on a weekly basis where and I’m not talking about like this community call, but like cocktail hour, you know, these type of things that we can set up. And I was talking to not do about that, but we just give model feedback, right the business and just put you, put yourself in strategic relationships that might just take your business forward, propel you to whatever next level you need to go to, not only to raise capital, but to make sure that deal is actually getting done without much questioning, just simply because all the pieces are up, if that makes sense, not to any feedback on that.

Speaker1: [00:17:18] I mean, I mean, I’m pretty much aligned it. Is this a matter of in and kind of I don’t know if you know, but there’s a bit of a almost like a slurping sound, but Mike. But yeah, yeah. So Ali, in regards to that, I’m just a follower of the market, so it’s usually whatever the community thinks would be most helpful for them is just building whatever is helpful for the community. But I think especially with, you know, reduced in-person meetings, anything to fill in that gap so that people get to raise capital quicker and then also get all these ancillary relationships I’m a fan of.

Speaker4: [00:17:53] You’re a hundred percent. Yeah, I’m there with you on that. It was then that did we have any specific issues that arose for people within raises lately about deal infrastructure or capital raising, per, say, anything in particular that stood out?

Speaker1: [00:18:11] Hmm. And it’s generally I mean, for example, the it’s really it’s really a journey by journey situation because, for example, somebody just joined Eric. He’s working on a grenade, acquisitions, grenades, contracts or acquisitions with decent meals. And his goal right now is just to work with one of our associates, like Rachel Katz there and then work with them directly. And so some people just go directly to that. Other people, they would do the equity campaign with the people that we have. And so, yeah, these are speed. Speed is something that people are always looking for.

Speaker3: [00:18:50] I agree and I have a question. So that expression of dumb money, dumb money as you gave a definition to. So, you know, through my networking and traveling, you know, I had the opportunity to meet and bring it to my network. Sorry, Du DuPont, who’s part of the Dubai family and his mother, is part of the Waldorf family. And so it was father’s side as mother’s on the wild side. And you know, he, you know, used that expression when he asked about time. In doing our experience and doing deals and, you know, and he uses that expression a little bit differently as dump money, as you know, you’re investing in a deal with people that are not experienced in that particular field due to the deal. And so it’s interesting that you had a slightly different definition of dumb money as far as as far as how you’re using it, but where you’re actually qualifying the deal with the dumb deal versus time in the market or doing a particular business?

Speaker4: [00:20:12] Yeah, I know I appreciate that feedback, man. Yeah, my context of dumb money, essentially. Look, it doesn’t necessarily mean the investors don’t have the pedigree to pull off a transaction confidently. It’s rather they’re so busy that they forget the base principles and their charters, right? Like, a lot of people are hunting yield because there’s a gap, right? Like, for example, if you look at covenant stuff, yeah, logistics and these these amazing companies that did well, unless your hedge right? A lot of different family wealth funds took a hit. On top of that, you got like the whole tax situation in these states, which is another thing that we’re going to have to come down another.

Speaker3: [00:20:52] Good afternoon. Hey, how are you? Oh, I’m sorry, guys, I’m running out of you.

Speaker4: [00:21:07] Yeah, yeah, yeah. So, you know, just to go back on that. It’s people chasing yield because of the gap, right? Some people can get away with it that they compromise. Like, let’s say, if there was a five step due diligence process, for sure, they look at everything, right? And the problem with looking at everything is sometimes they compromise like what can be realistic? So they’ll probably skip out on one step. And they say, Look, although other four look good, we’re chasing yield right now. We have to catch up to the big gap that we just underwent. Markets are stabilizing and so on, so forth. So these investments can, you know, for them, like it’s almost like if they’re trying to rush to catch up to yield that, that investment structure that they deploy or just on that transaction? What what’s happening is they’re taking a huge hit because they’re compromising their due diligence processes or that five step system. What happens now is you’re fielding your money in a dumb environment because it doesn’t have the standard protocol of the five step system, hence the dumb money. Right? Obviously, there is always good money after bad. That’s another expression that we have to realize and kind of, you know, attach ourselves to procedures on.

Speaker4: [00:22:16] But yeah, it’s it’s definitely interesting. You know, every every individual out there who actually investing, underwriting, doing transactions. You know what, Labrador capital, obviously, if you guys haven’t heard myself and not to, you know, we spoke about that a little bit and one of the raises dot.com videos, but we’re always looking at transactions, qualifying originating and some of these the most of the people who are. So we do debt restructuring, you know, that’s our principle business. It’s to avoid Chapter 13 or go through court through a receivership or something like that. It’s it’s the end of the line. So most of the times we look at a balance sheet, we see a lot of VC hedge funds and private equity funds that are stuck behind those transactions because they made a decision that was rash, too quick to abrasive. And we’re left with restructuring their component because they don’t necessarily have a lot of, you know, security there. So they have to compromise on settling whatever result or whatever we can offer. And they don’t want to go through court because Chapter 13 is very lengthy. So we see a lot of money that’s tied private wealth that is behind some of the larger transactions.

Speaker4: [00:23:27] Wonder when challenges during COVID. And we saw the protocol on how they could have avoided the catastrophe in the first place. So it’s not just about the money itself, but it’s also how it’s deployed. You know what the terms were on that liquidity? Are they squeezing the company and so and so forth? There’s a lot of stuff that we need to discuss, but anyways, the goal here is create an environment like not to set to raise the capital the fastest way possible, but do it. So that is evidently beneficial to, you know, a systematic flow of liquidity that kind of doesn’t compromise values, but also aligns with a the company can actually get it done and whatever is being proposed out there to raise the money via terms can be handled in a way that hopefully preserves your integrity as a business, right? And you know, that’s a long term financial partner. It’s not just a one time deal. These guys are happy with you guys and their liquidity is drawn up in the future. They’re going to come back. Right? And it’s a safe zone and safe harbor. So that’s just a consideration. But anyways, not too much. Go for it. I don’t want to monopolize the call.

Speaker1: [00:24:26] No, I mean, by all means. I mean, it’s a self-organizing system here. So I’m just I’m just here to facilitate.

Speaker4: [00:24:36] I appreciate that, ma’am. Anybody else get anything?

Speaker1: [00:25:00] No problem is not just usually usually take an indication of a bit of a pause, and then because some of the calls we can wrap up early and sometimes it calls are a bit quiet, right?

Speaker3: [00:25:12] So one hundred percent, 100 percent, yeah.

Speaker4: [00:25:17] Yeah, just just to go back on that. These are people for internal, right, like who already signed up for the four raises.

Speaker1: [00:25:27] Exactly, I think.

Speaker4: [00:25:29] Gotcha, gotcha. Yeah, man, like if anybody is obviously looking at this replay and taking advantage of the community, as I stated with our video with not to hear it go through the process, you know, you get the feedback through process. So if I can emphasize that a hundred times and beat the horse dead, like, that’s what I would say. Just follow the process. Trust the trust, the system, you know?

Speaker1: [00:25:54] Well. And I mean, evidently, like like they’re already, you know, they’re going through drafting some of their information. And so, yeah, in due time when it will be in the market and. Well, I’m just just here again. Any further remarks from anyone? And I’ll just. If not, then we can just slowly just wind up.

Speaker3: [00:26:24] I have nothing that.

Speaker1: [00:26:36] Got it. So, gentlemen, so I think, yeah, I think this is a good point to wrap up. So yeah, so what we’re doing is usual. Any questions? Just hit up supports and yeah, the goal is always to get our transactions done in the quickest, most effective way possible. Right? So, yeah, so gentlemen, thank you so much for your time today.

Speaker3: [00:26:57] Hey, thanks, Major. You’re welcome, thank you. No worries.

 

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