Everything Mike Zani said on any show that made the record, most notable first. Each card names its show and opens the statement there.
Only 4 of 45 Ledco employees remained after Zani's acquisition
“We had 45 people, and only four of those people made it, and we actually used the Predictive Index as a client to help us reshape our human capital strategy.”
Predictive Index accelerated from 8% to 34% growth post-acquisition
“It was growing at about eight percent for the last 10 years before we bought it, and we've retooled the company, and this last year will be 34% growth.”
Zani details search fund carry hurdle: 20% under 30% IRR, 30% over
“Typically we structure it as a profits interest. So what we do is we get everyone their initial capital back. And then we share, you know, a percentage of the proceeds and you hit on it. If we are under a 30% IRR, we get 20% of the proceeds. And if we're over …”
Predictive Index average ACV is $12,000
“Yeah, our average ACV is 12,000.”
The Predictive Index has 6,100 corporate clients
“That's, you know, our average client, we have 6100 clients.”
Predictive Index generated $50M in revenue when Zani acquired it in 2014
“We are, we're doing when we bought the company in 14, we were doing fifty million in revenue.”
Predictive Index is forecasted to close 2017 at $70M revenue
“And we've grown the company to seventy million when we're closing out, forecasted to close out on 17.”
Zani: Predictive Index has self-funded through cash flow since November 2014
“And the only capital that we've brought on was acquisition capital. Since November, 2014, we've self-funded everything through cash flow.”
Zani: PI acquisition was backed by original 2004 search fund investors
“Daniel, Daniel and I put put some in, but we've used our investors in the search fund that we've, that got us going in, in 2004. And we've gone back to them through every subsequent deal and just sort of passed the hat.”
Zani put zero personal equity into his first search fund deal
“And in our first opportunity, we didn't put any equity in. We just earned sweat equity. But we did well with the first company and we've taken some of our proceeds and bought other companies and we've been able to put more and more equity into our subsequent i…”
Zani reinvests all company cash flow into growth over regular payouts
“We've done that just because in most of the companies that we've had, we have wanted to take all of our cashflow to invest in growth.”
Zani: Predictive Index CAC payback period is roughly 16 months
“I think it's about we're probably at about 16 months payback.”
Zani: Predictive Index reaches 98% revenue retention, sub-90% logo retention
“On, on revenue, it's closer to 98. On, on logo, it's just under 90.”
Mike Zani and partner have acquired four existing companies
“My business partner and I have purchased and taken over four sort of used companies”
Zani: Predictive Index sells only upfront annual subscriptions
“Only annual.”
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