Texas Mike Thread
Leads the Triton, scoops some bracelets, gets completely hosed on the million dollar cash game, makes perhaps the craziest big bluff ever, shows one card to punish Feldman.
Guys a legend in the making. Let's hope the trust fund is big enough to handle the action and beat up the pros.
24 Replies
Hes shipping the 12 milly no question, let’s go TM !
Where's his money from, besides sarcastic responses?
From a quick search it looks like him and whomever Scott is(same last name), started a business called Box Partners llc in 2006. Here is the current update on the company: (copied from google)
In January 2022, BOX Partners, LLC, an Elgin, Illinois-based packaging supplier, was sold to Charlesbank Capital Partners. Here are some details about the sale: [1]
Financial advisor
Mesirow, an independent financial services firm, acted as the exclusive financial advisor to BOX Partners. [1]
New CEO
Neil Thomas became the new CEO of BOX Partners. Thomas was previously the CEO of Trojan Battery, a family-founded business owned by Charlesbank from 2013–2018. [2]
Majority ownership
Charlesbank Capital Partners has majority-owned BOX Partners since December 2021. [3]
BOX Partners is the largest wholesaler of packaging, shipping, and industrial supplies in the United States. They supply products for the distribution and e-commerce markets. [1]
Generative AI is experimental.
So looks like him and his brother maybe started this packaging supplies/materials company and grew it for 15+ yrs and was able to do an M&A deal. They have been fully removed from the companies website though, those who have started companies and grown it to sale know that this is common once the business goes corporate. The seats get filled with a bunch of MBA's. Not sure what the site used to look like but it basically looks like a more colorful approachable Uline.
They likely made some chang on this deal
From a quick search it looks like him and whomever Scott is(same last name), started a business called Box Partners llc in 2006. Here is the current update on the company: (copied from google)
In January 2022, BOX Partners, LLC, an Elgin, Illinois-based packaging supplier, was sold to Charlesbank Capital Partners. Here are some details about the sale: [1]
Financial advisor
Mesirow, an independent financial services firm, acted as the exclusive financial advisor to BOX Partners. [1]
New CEO
Neil
probably not him. probably his dad rich people pass down names. people who start billion dollar businesses don't play poker like mike XD. hes also just way to young to have likely started a business in 2006
He also has some kind of heart issue that might kill him in the not so distant future so maybe he’s just going full YOLO
He’s obviously Texas Mike Jr.
BOX Partners started in 1989 and was family owned until they sold to private equity. My guess is the business was sold for something like $100-200m, and per the press release until they sold majority equity to PE they took 0% institutional money. So lets say they sold something like 70-80% of the equity and pocketed maybe like $100m.
Usually these deals have earn-outs or some type of structure by which not all of the sale is in cash -- but even so lets say they cashed out for $100m and Mike got half so say $50m. Tax structure on selling a business like this is favorable as its just capital gains, so say 20% taxes on $50m = $40m net for Mike (again unclear how much of this is cash vs equity/earnouts but probably at least $20m cash to him and the rest in some form of rollover equity o/w maybe a lot realized by now?).
Cliffs --- sold family business that his parents founded to PE, back of envelope calculation is $50m gross to Mike o/w maybe $20m in actual cash minimum
BOX Partners started in 1989 and was family owned until they sold to private equity. My guess is the business was sold for something like $100-200m, and per the press release until they sold majority equity to PE they took 0% institutional money. So lets say they sold something like 70-80% of the equity and pocketed maybe like $100m.
Usually these deals have earn-outs or some type of structure by which not all of the sale is in cash -- but even so lets say they cashed out for $100m and Mike
Yeah it's more than likely exactly this, maybe not figures wise because those are whatever, but the premise he had a family business that he was the beneficiary of and then sold it makes a lot of sense and happens all the time when parents die or retire. In other less complimentary words, he's a just another trust fund baby 😉
chatgpt estimates the valuation of the company around the time of the sale to be around 2 billion
this jives nicely with charlesbank's press release on the acquisition, which left the purchasing price unmentioned but said it was a player in a 70 billion industry
private equity likes to put as little money as possible into each acquisition (a 10% roi makes a lot more money at the end of the day if you used your 10 million to do 100 million in deals via leverage and creative contracts rather than just using your 10 million into deals directly)
so it's highly likely that unless a lot of outside financing came in, the family is likely getting a lot of that money deferred in the form of royalties or profit sharing until made whole
chatgpt estimates the valuation of the company around the time of the sale to be around 2 billion
this jives nicely with charlesbank's press release on the acquisition, which left the purchasing price unmentioned but said it was a player in a 70 billion industry
private equity likes to put as little money as possible into each acquisition (a 10% roi makes a lot more money at the end of the day if you used your 10 million to do 100 million in deals via leverage and creative contracts rather than ju
They may have rolled some equity into the new company post acquisition by PE, but the PE firms will get a ton of leverage on a cash cow business like that so I am sure the family cashed out the majority of the purchase price unless they asked for it to be deferred for tax purposes.
They may have rolled some equity into the new company post acquisition by PE, but the PE firms will get a ton of leverage on a cash cow business like that so I am sure the family cashed out the majority of the purchase price unless they asked for it to be deferred for tax purposes.
seller financing has become extremely common in acquisition deals in the high interest rate era. it depends on the industry but something like 50% seller financing 50% down (with the down payment representing an amount that the PE firm has levered up with other debt) has become standard in a lot of industries.
Longhorns hat pulled low, metronomic lefty chip shuffle, seems like a decent guy, gl TM.
Edit:Cliffs: I worked for a family business acquired by PE, the MBAs drove it off a cliff before the ink was dry and paid the founder (RIP) to come back and rescue it, and his son is CEO still lol.
Brag: I got a $3400 bonus check off the deal.
2nd Edit: It was somewhat like MJ’s retirement/comeback but with the White Sox winning the WSOB and the Bulls picking Darko #1 in the interrum.
JFC people, you do not have to quote entire posts when your post follows theirs, and if it isn’t the next post, quote ONE paragraph. smh lucky I’m not a mod
They may have rolled some equity into the new company post acquisition by PE, but the PE firms will get a ton of leverage on a cash cow business like that so I am sure the family cashed out the majority of the purchase price unless they asked for it to be deferred for tax purposes.
seller financing has become extremely common in acquisition deals in the high interest rate era. it depends on the industry but something like 50% seller financing 50% down (with the down payment representing an amoun
You have no idea what you are talking about
I always liked walking through vast box supply warehouses back in my shipping & receiving days.
ok, I brokered a $10 million acquisition deal this year to a holding company that was half seller financed. i don't know anything about the cardboard box industry though.
I agree with Donkey, you don’t know what you are talking about.
Also lol at $10m deal, that’s not PE, that’s like someone selling a couple of subway franchises
