The model
What Magnor Equity Partners Looks For In A Partner Company
Three things decide it. The offer has to be one a buyer would feel stupid turning down. The company has to sell to businesses, not consumers. And the founder has to be someone worth working beside for years.
Magnor Equity Partners takes one new partnership per quarter, so most conversations end in a no. Three things decide it, in this order.
What is the first thing Magnor Equity Partners looks at?
The offer. A no brainer offer means the company being sold to would feel very stupid for saying no to the proposition. When the offer is that good, the company becomes easy to market. When it is easy to market, it becomes easy to sell.
The reverse is the useful diagnostic. If a company is having a hard time marketing its product, that is usually not a marketing problem. The offer is weak, and no amount of creative testing or budget fixes a weak offer. The best marketing tactic in the world is creating a no brainer offer.
This is also why the offer comes before everything else in a partnership. Nothing downstream works until it is right.
Why only B2B?
Because Magnor Equity Partners sells to a sophisticated market, and the way the firm sells suits that market. John Magnor’s approach on a call is direct and sometimes brash. That works with a buyer making a commercial decision for their company. It does not work for selling insurance to a consumer at their kitchen table.
Every company in the portfolio sells to other businesses. There are no consumer deals, and there will not be.
How much does the founder matter?
Enough to end the conversation regardless of the product. Magnor Equity Partners takes revenue and equity positions and holds them, which means the firm and the founder are working together for years. That only works on trust running in both directions.
- What the founder gives
- Room to operate. The firm owns client acquisition and needs to run it without seeking approval on every change.
- What the firm needs to believe
- That delivery will hold. More clients only helps if the company can serve them.
- What ends it
- A founder who is shady, or one who wants to watch every move.
The firm can fix a pipeline. It cannot fix a founder it does not trust.
What does this mean if you are considering a partnership?
Look at the three in order before getting in touch.
| Fit | Not a fit | |
|---|---|---|
| Offer | A buyer would feel stupid saying no | Needs explaining before it lands |
| Market | Sells to businesses | Sells to consumers |
| Founder | Wants an operator, gives room | Wants a vendor to supervise |
If all three hold, the partner page lists what to send.
Questions about fit and qualification
What is the first thing Magnor Equity Partners looks at?
The offer. When a buyer would feel stupid saying no, the company becomes easy to market, and easy to market means easy to sell. A company that struggles to market its product usually has an offer problem rather than a marketing problem.
Does Magnor Equity Partners work with consumer businesses?
No. Every company in the portfolio sells to other businesses. The firm's selling style is direct and suits a sophisticated buyer making a commercial decision on behalf of a company. That same approach does not translate to selling to a consumer at their kitchen table.
How much does the founder matter?
Enough to end a conversation on its own. The firm takes revenue and equity positions and holds them for years, so a founder who cannot be trusted to deliver, or who needs to watch every decision, is not a fit no matter how good the product is.