Sigma Private Equity Proposal
Eman, I propose developing Sigma Brokerage into Sigma Private Equity (SPE) as a full-fledged equity roadshow, showcasing the elegance and class that Sigma has demonstrated in the gaming space. I remember attending your events in Malta as a minor participant; you personally asked about my interests and arranged for a staff member to introduce me to exhibitors. Even at large gatherings, you made every attendee feel valued. It’s a dream to work with you on our first conference and hopefully not the last!
You generously volunteered Sri Lanka. If I may, why not make these side, pre- or post-events occur at all of your six 2025 events? We have time to sell them. You have a global brand now. And there are global clients that you can solicit: EY, Goldman, Blackstone, Dentons to mention a few.
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What Can We Gain?
1. Conference fees
2. M&A or other advisory fees
3. While this might not significantly impact Sigma’s eventual sale, it would be a worthwhile and enjoyable endeavor.
Anyone negotiating the purchase or financing of a company—outside of absolute tech startups—expects five years of balance sheets and four years of income and cash flow statements. They also want a summary of the business's competitive strengths and weaknesses and any potential issues involving former spouses or minority shareholders. A personnel chart, evidence of managerial responsibility (like return on equity), compliance documentation, and good. Sellers always want to present a Private Placement Memorandum (PPM), but honestly it’s the last thing I really want to read.
Business owners often worry about aspects like valuation, deal structure, employee impact, future growth strategy, confidentiality, tax implications, post-sale involvement, negotiation dynamics, timing, and potential legal issues when considering a private equity sale.
Imagine hosting people in an elegant venue, providing summaries of this information in leather-bound folders, and arranging meetings with buyers, sellers, and relevant professionals. This would create an extraordinary event—far more engaging than an agenda diluted by sponsor keynotes, “roundtables” that are essentially paid promotions, and endless discussions of DEI and ESG initiatives. Don’t get me wrong; I care about equity, the environment, and governance, but those discussions aren’t priorities in acquisition conversations.
Return to Table of ContentsIdeal Business Scenario
1. Form strategic marketing agreements with organizations that attract cash-flowing companies, such as:
- YPO
- EO (I was in YEO, its younger branch)
- Major private equity firms
- Heads of public companies in your markets
2. Attract major speakers using your brand reputation. I’ve already approached two in Indonesia, but there are likely more we could invite.
3. Utilize your sales team to handle inquiries and sales or to guide us on how best to do so. Your expertise in hosting top-notch conferences should inform our approach.
4. Share commercial details with host hotels to align on arrangements.
5. Schedule our event to coincide with your Sigma events globally, enabling us to leverage side events like the poker tournament and hotel terms.
6. This way, both of us benefit by selling tickets while only bearing marginal costs for meeting spaces, materials, and conference rooms.
Exit Bootcamp
What could truly intrigue companies and private equity firms? A chance for companies to assess their value in the private or public marketplace—no strings attached. As an entrepreneur, I found books like One Up on Wall Street invaluable, helping me think about my company's worth even when I didn’t want to sell.
The idea is to present a PE firm with essential, straightforward materials—five years of financials, basic metrics, and a brief summary (no lengthy pitches or PPMs). The PE and companies could meet in a civilized no pressure environment about things that would increase enterprese value.
Who benefits:
- Companies: They get insights from top market experts on what makes them say, “What a deal!”
- Private equity sponsors: They gain access to in-depth financials and insights that are often difficult to obtain, although companies are not necessarily interested in selling.
- Capital formation is beneficial to society, especially in the U.S., where recent DOJ antitrust actions have dampened M&A activity.
Conference Arrival Vision
1. Special communications, like a gift basket featuring our “Invest like a Baller, Sleep like a Baby” T-shirt, are sent in advance.
2. Attendees arrive, greeted and taken to a premier hotel—ideally somewhere like the Four Seasons in Bali.
3. Personalized welcome notes and curated schedules (speeches, meetings) await them.
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Rake and Tournament Fees (kidding, what do we pay Sigma from tickets we sell)
1. If we sold tickets under your brand, what would Sigma’s share be?
2. For accommodations, how would we coordinate with your staff?
3. How should we reward Sigma for follow-up engagements? For gaming engagements, Sigma should likely lead, with us offering analytic support if needed. For general attendees, any clients we secure would be due to our conference. Can we agree to share some fees voluntarily with Sigma?
Final Questions
1. Do you have a key lieutenant we could work with on logistics?
2. If side events are allowed at Sigma’s 2025 conference, would you consider co-hosting our Indonesian Private Equity event on our new home turf?
Sincerely,
Nick Levenstein