Coaching Up. Finance. Answers Please. I Love Mom. The Sax.
- Quote of the Week: “Success comes when people act together; failure tends to happen alone.” – Deepak Chopra
The euphemisms and cliches wrapped around the word ‘team’ are endless. From wartime generals to college and professional coaches, engaging and motivating your team is important to any organization. Deepak Chopra’s science and spirituality always related to a group or team being more important, stronger, and effective than one individual. Success can be defined in many ways with team performance usually triumphing over individual performance. The importance of ‘team’ was effectively portrayed in the movie “Heart of Champions” starring Michael Shannon as a non-traditional rowing coach.
- Though the equity markets had a rough go last week, there are financial mechanisms that are prospering. One fortunate financial barometer is the world of mergers and acquisitions (M&A). Thanks to a variety of factors, the U.S. is expected to see a surge with M&A activity this year. According to Pitchbook:
FORECAST: One barometer projects a 16% jump in private-equity M&A, and 8% growth in corporate M&A, with around 1,170 corporate deals anticipated this year.
SUPPLY AND DEMAND: Potential participants in the M&A market have long been optimistic about the effect of President Donald Trump’s administration, which is expected to exercise a lighter regulatory touch than what was seen during the Biden administration. On the supply side, growth is expected from private-equity portfolio companies and non-core assets divested from larger corporations.
PRIVATE EQUITY: Part of any discussion of the M&A market should be the private-equity sector. Firms reported $738.1 billion in deal value across 7,321 deals last year, according to data from PitchBook. That’s up from $729.4 billion in 2023, but the number of deals is down from 7,740. For many small-business owners looking to sell, private-equity companies offer a payday they can’t find elsewhere. That’s led many small-business owners in industries with skilled trades like heating, ventilation and air conditioning or plumbing to cash in, especially as owners reach retirement age — and as many small-business owners feel burnt out.
FOLLOW THE MONEY: Commercial services, including manufacturing, consulting, legal and logistics, led the way in 2024, representing 41% of total private-equity deal count. Consumer services — household appliances, retail, hotels and restaurants — came in at 16%, as did tech firms. That was followed by health care at 13% of total deal count, and financial services at 10%.
I sent the information above to a friend of mine who is an owner and operating partner with a private equity firm in the Raleigh, North Carolina area. Here is how he responded:
M&A deals were down the last two years. First, driven by rise in interest rates and availability of debt used to fund and provide leverage for transactions. This was complicated further last year due to uncertainty with the election. These dynamics created a bit of a backlog of deals coming to market. Now, the cost of debt hasn’t changed much, but the election has provided clarity. There is a lot of capital to invest. Some have been needing the sale of assets to get a return on their existing investments so they can invest more. I think the volatility in the stock market might drive more investment to private equity (PE) – at least I hope so. We are in the market right now raising two new funds. Fund VI is a structured capital fund that will be about $1B. We are also raising equity fund II which will be about $300M. We are not having trouble raising the capital.
Thank you, C.A. for insight into the ongoings of private equity and the world of mergers and acquisitions.
- Last week’s Question of the Week generated four great answers from our readers. Remember, these answers are from the readers of JustMyTake.
Do you believe it is necessary to believe in God to be moral?
*”No I do not! I think being a morally decent person has more to do with integrity than religion. Whether you believe in God, Buddha, etc. or an atheist- you can have morals. There are plenty of people that practice some form of worship and cheat, lie, etc.“
* “No, not at all. I don’t think you need to believe in God to be moral. In my opinion, caring and love are the ultimate morality check. Whether it is love, compassion, empathy, or care for others, is what often motivates moral behavior. God bless the group (you hate) who wrote “All you need is love.” Pay it forward.“
Note: The ‘group’ my long-time friend is referring to are The Beatles…I have never been a fan).
*”I suspect the popular and majority opinion will be to say “No”. It might depend on how you define “moral”. Is it simply knowing right from wrong? In that case, no. You can learn right from wrong by touching a hot stove. If you define moral as a set of guiding principles that shape and inform our actions, words, and opinions, then I contend that you cannot escape a “religious” influence because religion is so deeply infused in our cultures, societies, and basic understandings. Religion exists all over the world in a variety of expressions that have all emerged unrelated to each other, save for a basic belief that there is something beyond us, greater than us, that informs our worldview and understanding of who we are. Ok, that does not mean we have to believe in “God” or a deity. Many people find their sense of morality through various sources, such as personal experiences, human empathy, philosophy, or cultural traditions, without needing a belief in a deity. Morality often revolves around principles of fairness, kindness, and respect for others, which can be grounded in secular humanism, reason, or social agreements. However, it has long been my belief that there is no such thing as an atheist. Everyone has something beyond themselves which defines and shapes their worldview and reason for existing. Something greater than ourselves. It may not be some transcendent being, but something that becomes “god” in our lives. If we do not, than we become someone like, say, Donald Trump! Maybe I need to revise my thinking about “no such thing as an atheist”! But even Trump has a “god”, it just resides in his navel (a-moral). So, yes, we need a “god” to be moral.“
*”Is this a political question disguised as a philosophical one?? If the last two President’s are any indication, the answer is definitely no. (Hopefully people can understand my attempt at humor.. (This would be a great SNL skit!)“
Here is this week’s question. I would like to get some answers from you:
How do we move beyond the divisiveness we experience in U.S. government? What reforms can restart a movement towards conciliation?
- I started JustMyTake as a challenge to write content on a weekly basis. My inspiration came from my brother and a number of journalists including John Feinstein. Feinstein’s columns and books were a wealth of information and he was highly regarded across the spectrum of all sports. Jim Boeheim, who coached the Syracuse basketball team for forty-seven years, had this to say about Feinstein: “Some people write stuff that’s opinionated, but have nothing behind it. He was opinionated about everything, but at least those opinions were rooted in something. He believed what he said, even if you disagreed with it.”
John Feinstein passed away last Thursday at the age of sixty-nine. He was a great journalist, writer, and commentator. RIP John Feinstein.
Things I Think for Mid-March 2025
- As mentioned in last week’s post, one impact with the tariffs is the bourbon industry in Kentucky. An unfortunate outcome has prevailed with a number of leading brands including Michter’s Distillery in Louisville, Kentucky. The distillery’s largest foreign market is Canada – with shipments totaling $115,000 now being canceled. There is certainly going to be a significant impact to your cash flow if you are not able to sell into your largest export market.
- Has anyone ever been to Greenland? On purpose?
- Headline of the Week: German spy agency concluded COVID virus likely leaked from a Lab. The agency, BND, indicates that the Wuhan Institute of Virology stated that they had conducted “gain-of-function experiments, whereby viruses are modified to become more transmissible to humans for research purposes.” Say what?
- Landman, starring Billy Bob Thornton, will be back for a second season. That is great news. Rude and crude but a great series.
- I never want to see people lose their jobs. With that said, The National Oceanic and Atmospheric Administration (NOAA) got caught up in the federal cuts and must lay off 1,000 employees. I am not being facetious with this question: If an organization can lay off 1,000 people in one reduction if force and continue to operate, what job functions were those 1,000 employees doing in the first place?
- With all the negative vibes we have experienced lately, I thought it might be time to provide a genuine feel-good story. Basketball player Norbertas Giga thought his coaches called him into a meeting to watch game tape. Little did he know that the Jacksonville State University (JSU) coaching staff and athletic director would pull one over on this young Lithuanian, flying his mom over to the U.S. to see her son for the first time in five years. Good work, JSU!
- Pure Talent. He was exposed to many different types of music at a young age, as he was raised by a father who was a disc jockey. Some of his favorite artists are Steely Dan, John Fogerty, and Elvis Presley. He is a gifted saxophonist who pumps out contemporary jazz and R&B. Vincent Ingala, at thirty-two years old, is not even close to being in his prime. This musician is Pure Talent.