Episoder
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Welcome back to The Private Equity Podcast, by Raw Selection! In this episode, Alex Rawlings, speaks with Geoff Lurie, Managing Partner at Traub Capital Partners. Geoff brings decades of experience as an operator-turned-private equity investor. He shares his invaluable insights on how private equity firms and portfolio companies can collaborate more effectively for superior results.
Breakdown:
[00:00] Geoff Lurie, Managing Partner at Traub Capital Partners, is introduced as an operator-turned-PE investor.[00:25] Geoff emphasizes the need to focus on how price increases are perceived on the other side.
[00:55] Alex discusses the tough market conditions for private equity and hints at potential positive changes with increasing hiring and deal flow.
[02:18] Geoff explains the issue with PE firms assuming that entrepreneurs must suddenly change how they operate post-acquisition.
[02:47] Managing expectations and helping entrepreneurs report to the PE firm without losing their edge.
[03:42] Entrepreneurs struggle to adjust to reporting to external investors after being self-reliant.
[05:07] The importance of the first 100 days after an acquisition, setting up reporting structures and management.
[06:26] The crucial role of the CFO in portfolio companies, and why PE firms often replace them after acquisition.
[08:19] Geoff discusses how changing consumer sentiment impacts the success of private equity-backed companies.
[11:01] Differences between financial modeling and the practical steps needed to increase margins in portfolio companies.
[13:17] The importance of understanding real-world difficulties in implementing changes in portfolio companies.
[14:28] Alex asks how young private equity professionals can gain operational understanding without becoming CEOs.
[16:26] Alex plugs Raw Selectionâs services, explaining the firmâs focus on executive searches for private equity-backed businesses.
[17:24] Geoff discusses the importance of managing debt properly and avoiding over-leverage in portfolio companies.
[18:23] Avoiding the mistake of using short-term working capital loans for long-term growth.
[19:42] Geoff explains how private equity firms motivate middle management by offering equity incentives.
[21:04] The importance of instilling an âenterprise, team, individualâ mindset in portfolio companies.
[24:20] Geoff shares a personal anecdote about overhearing a young woman discussing her desire for a high-paying job without office work.
[26:20] Geoff talks about his transition from operator to private equity investor and why he made the switch.
[29:43] The best time to sell a portfolio company is on the way up, not at the top.
[31:10] Geoff explains the importance of setting up the right structure to allow CEOs to focus on future growth, not just day-to-day operations.
[32:34] Geoff shares that his passion stems from mentoring young professionals and imparting knowledge.
You can connect with Geoff Lurie on LinkedIn by visiting his profile here.
To be added to the book waitlist, you can email [email protected]Thank you for tuning in!
To get the newest Private Equity episodes, you can subscribe on iTunes or Spotify here.
Lastly, if you have any feedback on the podcast or want to reach out to Alex with any questions, send an email to [email protected]. -
Welcome back to the Raw Selection Private Equity Podcast! In this episode of our Playbook series, we're thrilled to have Ted Clark return. Ted, a seasoned chief executive now making waves as a private equity investor with Iron Path Capital, shares invaluable insights into the art of deal origination. Having previously discussed growing enterprise value from $30 million to $1.4 billion, Ted now dives into the strategies that set Iron Path Capital apart in the competitive landscape of private equity. This session is packed with actionable advice for anyone looking to enhance their deal-making prowess. So, let's jump right into another insightful discussion with Ted Clark.
Breakdown:
[00:00] Introduction of Ted Clark, highlighting his transition from chief executive to private equity investor, focusing on deal origination strategies.[01:11] Overview of specialization trends in private equity and their advantages in deal origination.
[02:32] The intersection of specialty chemicals and life sciences in private equity investments.
[04:00] Importance of having a clear vision and foundational strategy for where to invest.
[05:00] Strategies used by Iron Path Capital to originate deals, emphasizing the importance of a solid investment thesis.
[07:26] Leveraging professional networks to gain insights and access potential investment opportunities.
[10:00] How Iron Path Capital uses a systematic approach to deal origination to maximize effectiveness.
[13:14] Ted Clark explains the benefits of having an operational background in enhancing credibility and understanding in deal negotiations.
[18:00] Discussion on the synergy between operational experience and private equity investment strategies.
[20:21] Ted Clark shares strategies for effectively leveraging his experience to enhance deal origination and execution.
[25:22] Insights into building and maintaining relationships with investment bankers to enhance deal flow.
[27:15] Closing remarks and ways to contact Ted Clark for further discussion or collaboration.
You can connect with Ted Clark on LinkedIn by visiting his profile here.To be added to the book waitlist, you can email [email protected]
Thank you for tuning in!
To get the newest Private Equity episodes, you can subscribe on iTunes or Spotify here.
Lastly, if you have any feedback on the podcast or want to reach out to Alex with any questions, send an email to [email protected]. -
Manglende episoder?
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Welcome to the Private Equity Podcast! In this episode titled host, Alex Rawlings, dives into the insights and strategies of a seasoned executive known for his leadership in multiple private equity-backed exits. Jeffrey Stark discusses his career trajectory, highlighting his transition from corporate America to becoming a pivotal figure in private equity spaces, steering companies through significant growth and successful exits.
Breakdown:
[00:00] Jeffrey Stark discusses his success with multiple private equity exits.
[00:11] He highlights his collaborative leadership approach, emphasizing guidance without micromanagement.
[00:40] Stark recounts his transition from corporate roles to significant positions in private equity.
[01:09] Focuses on challenges and strategies for leading companies to successful private equity exits.
[01:37] Insights into his proactive career approach in the private equity sector.
[02:33] The value of independent board members in providing unbiased support and expertise.
[03:46] Benefits of experienced board members for guidance in unfamiliar business areas.
[04:44] Operational focus on lean manufacturing and quality improvements.
[06:09] Discusses the transition from CEO to advisor roles, and the dynamics involved.
[07:33] Tactics for building trust with CEOs and preparing them for board meetings.
[09:01] How he has guided marketing strategies through CEOs, fostering a partnership approach.
[10:17] Stark shares experiences on cultural and operational challenges in mergers and acquisitions.
[12:49] The importance of transparent communication during transitions.
[14:05] Financial strategies and accountability in managing private equity-backed companies.
[15:20] Leadership development within teams to foster a culture of innovation.
[18:14] Insights into global economic factors influencing private equity.
[19:05] Ethical considerations and corporate governance in the sector.
[20:21] Predictions on the evolving landscape of private equity and the role of technology.
[21:40] Advice for aspiring private equity professionals based on extensive experience.
[22:58] A case study of a successful exit, detailing strategic decisions involved.
[24:15] Discussions on work-life balance and managing stress in leadership roles.
[25:30] The role of mentoring and support systems in his career.
[26:45] Innovation in maintaining business competitiveness.
[28:00] His involvement in philanthropy and corporate social responsibility.
[29:15] Strategies for managing international business and cross-cultural teams.
[30:30] Thoughts on leadership succession planning.
[31:45] Personal and professional development influences.
[33:00] Future plans and continued impact on the industry.
[34:15] Invitation to connect for further insights and collaboration opportunities.
[35:30] Closing remarks.
You can connect with Jeffrey Stark on LinkedIn by visiting his profile here.Thank you for tuning in!
To get the newest Private Equity episodes, you can subscribe on iTunes or Spotify here.
Lastly, if you have any feedback on the podcast or want to reach out to Alex with any questions, send an email to [email protected]. -
Welcome to The Private Equity Podcast by Raw Selection! In this episode, our host, Alex Rawlings, is joined by Jordan Burton, co-founder of Talgo. Together, they delve into the intricacies of talent interviewing and assessment within the private equity sector. Jordan brings a wealth of knowledge from his transition from a potential private equity investor to an expert in executive talent assessment. This discussion promises to enlighten those interested in optimizing their hiring processes and understanding the common pitfalls and best practices in recruiting top-tier executives.
[00:00] Introduction to Jordan Burton, specializing in talent interviewing and assessment.[00:16] Discussion on timely decision-making in human capital issues.
[00:44] Jordan shares his career transition to executive talent assessment.
[01:12] Insights into Jordanâs career evolution and the founding of Talgo.
[02:11] Importance of proper interviewing techniques in talent acquisition.
[03:07] Indicators of when to act on personnel changes.
[04:06] Consequences of being overly accommodating in personnel decisions.
[05:02] Deep dive into interviewing and hiring processes.
[06:01] Setting clear expectations and metrics for new executives.
[08:22] Characteristics of effective private equity executives.
[10:19] Traits that define a top executive in private equity.
[12:15] Importance of quantitative skills in executives.
[13:13] Techniques used in interviewing executives about their past experiences.
[15:05] Importance of detailed discussions about past roles and achievements.
[18:27] Systematic assessment in identifying leadership qualities.
[20:26] Nuances of executive onboarding and performance tracking.
[22:10] Organizational dynamics and internal politics in hiring.
[24:06] Future trends in executive hiring, including technology impacts.
[26:01] Importance of adaptability and continuous learning in talent acquisition.
[28:26] Final thoughts on the evolution of the talent acquisition field.
[30:52] Methodologies for developing leadership pipelines in portfolio companies.
[33:18] Common pitfalls in the executive search process and avoidance strategies.
[35:44] Role of diversity and inclusion in executive hiring.
[38:09] Jordan reflects on the mentors who shaped his career.
[40:33] Tips for building a career in talent management within private equity.
[42:57] Advice for maintaining a competitive edge through strategic talent management.
[44:31] Closing remarks by Alex, encouraging listener engagement and subscription.
You can connect with Jordan Burton on LinkedIn by visiting his profile here.Thank you for tuning in!
To get the newest Private Equity episodes, you can subscribe on iTunes or Spotify here.
Lastly, if you have any feedback on the podcast or want to reach out to Alex with any questions, send an email to [email protected]. -
Welcome to the Private Equity Podcast! In this episode, we explore the nuances of building and scaling businesses within the private equity realm. Alex excited to welcome back Brendan Anderson, Managing Partner of ScaleCo Capital.
[00:00] Brendan emphasizes the importance of having the right people and vision for successful business ventures.[00:11] Discussion on enhancing value through strategic customer engagement and supplier relations.
[00:21] Insight into the shift from gut feeling to data-driven decision-making in business strategies.
[00:50] How ScaleCo Capital scales smaller businesses often overlooked by larger firms.
[01:20] Focus on B2B service providers and manufacturers that require scalability.
[02:18] Initial challenges in acquiring and transforming small-cap companies.
[03:16] The significance of entrepreneurs stepping back from central operations to improve scalability and attractiveness.
[05:35] Exploration of the Entrepreneurial Operating System (EOS) for aligning management teams.
[06:56] Importance of team alignment in realizing business visions through EOS.
[08:16] Breakdown of ScaleCo's five pillars of business transformation.
[11:02] Integration of technology in customer and supplier engagement.
[12:53] Mention of ScaleCo's partnership with Grata, highlighting data-driven processes.
[15:17] Challenges and strategies in building effective sales teams.
[19:25] Impact of robust financial reporting on business strategy.
[20:49] Essential financial metrics and practices for new acquisitions.
[21:19] Brendan discusses the importance of accessing real-time financial data to drive strategic decisions.
[22:41] How deep insights into financial data can reveal new growth avenues within existing customer bases.
[24:06] Strategies for empowering leadership teams to take initiative and drive growth independently.
[25:24] Plans for integrating operational changes within 18 to 36 months to ensure sustainable growth.
[26:16] Challenges of effectively managing and growing businesses and how private equity provides crucial support.
[27:13] The necessity of continuous self-development and adaptation for businesses to evolve.
[28:11] The strategic focus on local investments to enhance relationship building and operational oversight.
[29:04] Geographic focus and its impact on investment success rates and operational effectiveness.
[30:01] The importance of local networks and relationships in managing and supporting businesses effectively.
[31:27] Brendan offers contact information for those interested in connecting or learning more about ScaleCo Capital.
[32:17] Discussion on building networks between talented individuals and promising businesses to foster growth and operational excellence in the private equity space.
[32:46] Closing remarks by Alex, thanking Brendan for his insights and inviting listeners to subscribe for more private equity discussions
You can connect with Brendan Anderson on LinkedIn by visiting his profile here.Thank you for tuning in!
To get the newest Private Equity episodes, you can subscribe on iTunes or Spotify here.
Lastly, if you have any feedback on the podcast or want to reach out to Alex with any questions, send an email to [email protected]. -
Welcome to the Private Equity Podcast! In this episode, Alex Rawlings welcomes back Brad Nathan, a seasoned private equity firm founder, to dive into the intricacies of starting and managing a PE firm. Brad shares first-hand experiences, detailing the triumphs and tribulations he's encountered and offering a comprehensive guide for navigating the competitive private equity landscape.
Episode Timestamps:
[00:00] Introduction of todayâs topic and guest, Brad Nathan.[01:15] Exploration of Bradâs early career and the motivations behind starting his private equity firm.
[03:30] Challenges faced during the initial setup of the firm, including capital raising and team assembly.[06:45] Strategies Brad implemented to overcome initial failures and secure the firmâs first successful deals.
[10:20] Key decisions and strategies that fueled the firmâs growth and expansion.
[13:50] Insights into the recruitment, culture building, and leadership styles vital for a successful PE firm.
[18:30] Stories of the highest highs and lowest lows in managing the firm.
[22:10] The most valuable lessons learned throughout Bradâs career and advice to aspiring private equity firm founders.
[25:40] Predictions on emerging trends and the evolution of the private equity industry.
[29:00] Listener Q&A session with Brad on specific challenges and advice on various scenarios in private equity.
[33:15] Summary of key insights shared by Brad and closing remarks.
You can connect with Brad Nathan on LinkedIn by visiting his profile here.Thank you for tuning in!
To get the newest Private Equity episodes, you can subscribe on iTunes or Spotify here.
Lastly, if you have any feedback on the podcast or want to reach out to Alex with any questions, send an email to [email protected]. -
Welcome to the Private Equity Podcast! In this episode, we dive into the intricate dynamics of managing relationships between CEOs and private equity firms with our guest, Matt Sharrers, founder of ETJ Advisory. Matt shares his extensive experience and insights on how executives can effectively navigate the transition into private equity-backed roles, focusing on the critical aspects of cultural change, value creation, and team management.
[00:00] Welcome back to the Private Equity Podcast by Raw Selection.
[00:59] Matt Sharrers discusses his background and current role at ETJ Advisory, including his past experiences with SBI and his diverse career path.
[01:28] Common errors by private equity firms and portfolio companies. Matt highlights the importance of understanding cultural impacts during CEO succession and aligning with private equity goals.
[01:57] Matt's book âThe Second CEOâ and its focus on helping new CEOs navigate the challenges of taking over from a founder and creating value.
[02:25] Advice on managing cultural shifts from a founder-led organization to a private equity-backed company.
[03:20] Strategies for defining and implementing new company culture effectively, including the role of top executives and culture champions.
[05:10] The importance of defining and communicating company culture and values. How to make culture an active mechanism in hiring, performance reviews, and onboarding.
[07:01] The role of the CEO in driving cultural change and the mistakes to avoid, such as deferring too much to private equity firms.
[09:56] Involving different levels of the organization in shaping culture and creating buy-in across the board.
[11:08] Challenges faced by first-time private equity-backed executives and the importance of understanding private equity models and support.
[13:08] Advice on balancing the information advantage of running the business with the guidance and input from private equity partners.
[15:34] Insights on how to approach value creation, with a focus on sustainable growth and the importance of a strong team.
[18:00] The necessity of adapting team composition as the company scales and evolves, including the need for new talent at different milestones.
[19:26] Advice on evaluating and developing talent within the organization to align with growth and value creation goals.
[23:20] When to make decisions about team changes and the importance of having the right team in place by mid-year two.
[24:20] Matt shares his reading and listening preferences, including books by Arthur Brooks, gratitude journaling, meditation, and sports interests.
[25:46] Alex thanks Matt for the insightful discussion on transitioning from founder-led to private equity-backed leadership.
You can connect with Matt Sharrers on LinkedIn by visiting his profile here.Thank you for tuning in!
To get the newest Private Equity episodes, you can subscribe on iTunes or Spotify here.
Lastly, if you have any feedback on the podcast or want to reach out to Alex with any questions, send an email to [email protected]. -
Welcome to The Private Equity Podcast! In this episode, weâre diving deep into the world of investments with a focus on sub $5M EBITDA companies. Our guest is Mason Myers, Founder and Managing Partner of Greybull Stewardship. Masonâs expertise lies in navigating and scaling smaller, often overlooked businesses, and heâs here to share valuable insights on how to unlock potential and drive growth in this niche market.
[00:00] Alex Rawlings introduces the podcast and today's focus on investing in sub $5M EBITDA companies with guest Mason Myers.[00:13] Discussion on Grable Stewardshipâs Gravel Strategy, targeting pre-middle market businesses with less than $5M in profit.
[00:24] Alex welcomes Mason Myers, Founder and Managing Partner of Greybull Stewardship, to the podcast.
[00:48] Alex invites listeners to connect on LinkedIn before diving into the conversation with Mason.
[01:13] Mason shares his background from journalism to founding Greybull Stewardship, his experience with startups, acquisitions, and his shift to private equity.
[02:34] Mason highlights common mistakes by private equity firms and portfolio companies, stressing the need to listen to founders and choose intermediaries carefully.
[04:27] Mason explains Greybull Stewardshipâs focus on pre-middle market businesses, the firmâs mission, and its commitment to this underserved space.
[06:44] Mason addresses unique risks in sub $5M EBITDA investments and how Greybull manages these risks, focusing on sustainable business models.
[09:08] Mason discusses strategies for scaling businesses post-investment, improving operational fundamentals, and expanding management teams.
[10:12] Mason details Greybull's diligence process and collaboration with management teams to enhance business value.
[12:29] Mason emphasizes the role of operating partners in creating value over financial engineering, noting Greybull's focus on operating experts.
[16:12] Mason advises businesses on increasing value before engaging with private equity, covering accounting practices, revenue predictability, and growth initiatives.
[19:29] Mason shares strategies for maintaining deal flow in a slow market and how Greybull uses referrals and intermediaries to find opportunities.
[20:27] Mason offers tips on selecting the right intermediary and invites a 20-minute brainstorming session to assist business owners.
[21:26] Mason discusses his influences, including Warren Buffett and Charlie Munger, and his interest in biographies and historical figures.
[24:17] Alex concludes the podcast.
You can connect with Mason Myers on LinkedIn by visiting his profile here or you can email Mason at [email protected]Thank you for tuning in!
To get the newest Private Equity episodes, you can subscribe on iTunes or Spotify here.
Lastly, if you have any feedback on the podcast or want to reach out to Alex with any questions, send an email to [email protected]. -
Welcome to the Private Equity Podcast! In this episode, we explore "Private Equity and Technology Transformation" with Alan Williamson. Alan, a seasoned CTO and operating partner, shares insights from his journeyâfrom embedded engineering to navigating Enterprise Java and PE due diligence. He emphasizes crucial operational details affecting portfolio companies, such as cybersecurity and data ownership, and discusses the evolving role of technology in PE.
[00:10] Social engineering is still the number one way to hack a company.
[00:17] Introduction of guest Alan Williamson, CTO, operating partner, and author.
[00:46] Discussion on technology transformation, pitfalls in private equity, and opportunities pre and post-deal.
[01:13] Shares background from embedded engineer to Java development and entry into private equity.
[02:08] Discusses common mistake in portfolio companies: neglecting operational details like domain ownership and software subscriptions.
[03:30] Anecdote on operational oversight challenges in companies due to misplaced responsibilities.
[04:29] Highlights key red flags in due diligence, emphasizing over-reliance on individual technical knowledge within companies.
[05:53] Discussion on technology enablement in private equity and the evolving role of specialized operating partners.
[08:17] Contrasts in-house technical expertise with external consultancy services in private equity firms.
[09:44] Pre-deal considerations including data ownership and regulatory compliance.
[10:37] Security concerns in acquisitions, emphasizing cybersecurity diligence and compliance across different states.
[14:37] Discusses social engineering as a primary hacking method in corporate security breaches.
[15:00] Post-deal implementation strategies including securing operations and aligning with PE firm objectives.
[18:58] Maximizing data value through machine learning and leveraging historical data for business insights.
[21:23] Personal influences and recommendations, highlighting interests in movies and older business literature.
[23:46] Alex Rawlings wraps up the podcast.
You can connect with Alan Williamson on LinkedIn by visiting his profile here.Thank you for tuning in!
To get the newest Private Equity episodes, you can subscribe on iTunes or Spotify here.
Lastly, if you have any feedback on the podcast or want to reach out to Alex with any questions, send an email to [email protected]. -
Welcome to the Private Equity Podcast! In this episode, join us as we delve into intentional business growth strategies with Tim O'Reilly. Learn key insights for success.
[00:11] Tim discusses the influence of certain books on shaping strategies.[01:19] Introduction to Tim O'Reilly and focus on intentional business growth strategy.
[02:17] Reflections on Frontier Service Partners' successful exit and the importance of strategy.
[03:17] Tim elaborates on the intentional strategy at Guild Garage Group.
[04:11] Key elements of successful business strategy, including leadership alignment.
[05:03] Analogies are drawn from crew dynamics to highlight clear leadership importance.
[06:00] Success story from Frontier Service Partners, emphasizing leadership impact.
[07:48] Discussion on transferring successful strategies to future endeavors.
[09:14] Importance of culture and consistency in delivering exceptional service.
[10:07] Utilizing weekly leadership meetings for consistency and accountability.[11:07] Reference to "Atomic Habits" by James Clear and daily habits' significance.
[12:59] Transitioning to intentional strategy at Guild Garage Group, emphasis on leadership development.
[14:25] Focus on sustainable business strategy beyond financial goals.
[15:21] Prioritizing leadership development and employee training.
[16:47] Investing in leadership training and development programs.
[18:15] Discussion on employee experience and its impact on customer satisfaction.
[19:39] Creating career paths and supporting employees' growth.
[20:38] Driving brand loyalty through consistent, high-quality customer experiences.
[21:58] Anticipating referrals and exponential business growth through service excellence.
[22:58] Balancing cost optimization with growth strategies.
[23:27] Mention of partnership with Grata for data-driven deal flow enhancement.
[23:55] Focus on leadership development plans and training initiatives.
[24:22] Basic principles of leadership development.
[24:50] Understanding personal goals of leaders and aligning them with work objectives.
[26:16] Insights on time management and personal well-being for effective leadership.
[27:42] Tools for assessing strengths and consistent leadership training importance.
[29:07] Importance of documenting personal and work goals.
[29:34] Aligning leadership training with business needs.
[31:54] Evolving leadership training programs to address business challenges.
[33:20] Commitment to strength-based leadership.
[34:45] Regular reassessment of strengths for alignment.
[37:35] Tim's advice on transitioning from CFO to CEO.
[42:42] Encouragement for aspiring leaders to seek growth opportunities.
[43:36] Tim shares his contact information for further assistance.
[44:06] Conclusion and invitation to subscribe to the Private Equity Podcast.
You can connect with Tim O'Reilly on LinkedIn by visiting his profile here.Thank you for tuning in!
To get the newest Private Equity episodes, you can subscribe on iTunes or Spotify here.
Lastly, if you have any feedback on the podcast or want to reach out to Alex with any questions, send an email to [email protected]. -
Welcome to the Private Equity Podcast! In this episode, host Alex Rawlings dives into a rich conversation with Nathan Sanders. From navigating financial constraints during the pandemic to tackling add-on acquisitions and integrating technology effectively, Nathan shares valuable insights gained from his extensive experience in leading Private Equity-backed businesses. Tune in to glean lessons on leadership, growth strategies, and the importance of a growth mindset in the world of Private Equity.
[00:12] Introduction to the episode, highlighting Nathan Sanders' experience as a Private Equity-backed CEO in various industries.[01:35] Nathan Sanders introduces himself as a value-driven leader, emphasizing his focus on transformation and continuous improvement.
[02:32] Discussion on the common mistake of focusing too much on short-term challenges rather than long-term value creation in Private Equity-backed companies.
[04:52] Strategies for shifting focus towards long-term value creation during the middle phase of Private Equity investments.
[08:04] Nathan shares lessons learned from leading Brooke Furniture through challenges and towards a successful exit.
[12:17] Processes implemented to gather intelligence on customer service needs, including direct interactions with customers and team members.
[15:32] Refinement of processes to automate simpler tasks, allowing the team to focus on addressing exceptions and improving service delivery.
[16:29] Nathan Sanders discusses the impact of understanding customer needs and team alignment on business success, leading to increased KPIs and decreased variable costs.[17:29] Sanders talks about tackling financial constraints during the pandemic and other industry headwinds by redeploying resources and focusing on revenue growth.
[20:09] Discussion on mitigating financial risks during challenging times and leveraging opportunities for revenue growth through strategic decision-making.
[20:38] Sanders shares advice for portfolio executives on managing acquisitions, emphasizing the importance of understanding the purpose behind acquisitions and building in risk factors.
[26:56] Insights from Sanders on successful integration strategies for acquisitions, including understanding the end goal, focusing on process mapping, and fostering a growth mindset within the team.
[29:46] Sanders discusses lessons learned from working with both large and small companies, highlighting the importance of technology implementation and process mapping in driving efficiency and growth.
[32:34] Discussion on prioritizing technology investments based on customer-facing needs and optimizing processes for maximum impact on revenue growth.
[36:22] Recommendations from Sanders on books and podcasts, including "The Fixed Versus Growth Mindset" by Carol Dweck, "What Got You Here, Won't Get You There" by Marshall Goldsmith, and the Founders Podcast with David Sentra.
[42:05] Insights from Sanders on fostering a growth mindset within teams, effective communication strategies, and recommendations for further engagement through LinkedIn and personal email.
You can connect with Nathan Sanders on LinkedIn by visiting his profile here.Thank you for tuning in!
To get the newest Private Equity episodes, you can subscribe on iTunes or Spotify here.
Lastly, if you have any feedback on the podcast or want to reach out to Alex with any questions, send an email to [email protected]. -
Welcome to the Private Equity Podcast! In this episode, host Alex Rawlings engages in a dynamic discussion with Nick McLean, founder of Four Pillars Investors, on the topics of servant leadership and disruptive marketing in the Private Equity sector. Join us as we delve into Nick's insights and experiences in navigating the complexities of the industry.
[00:00] Hosted by Alex Rawlings, featuring Nick McLean. Discussion on servant leadership and disruptive marketing in Private Equity.[00:12] Nick McLean, founder of Four Pillars Investors and creator of Nick McLean Private Equity YouTube channel.
[00:42] Nick McLean, co-founder of Four Pillars Investors, targeting lower middle market companies with untapped growth potential.
[01:09] Not all firms are equal; some are overly spreadsheet-driven. Four Pillars Investors prioritizes entrepreneurial problem-solving over rigid financial analysis.
[03:03] Nick's shift from business operator to Private Equity investor, emphasizing portfolio growth and development.
[04:52] Prioritize relationship-building; establish rapport before closing deals. Four Pillars Investors focuses on strong, pre-existing relationships.
[07:41] Named after core values: Relationships, Servant Leadership, Challenge the Status Quo, Persistence.
[09:27] Focus on helping team members succeed; create positive work environments and prioritize career development.
[14:49] Nick's decision to start a YouTube channel differentiates Four Pillars Investors, aims to provide valuable content and build relationships.
[18:17] Content creation and branding are long-term investments; intent and commitment are crucial for success.
[22:09] Studying leadership principles; recommended book: "Influence: The Psychology of Persuasion" by Robert Cialdini.
[24:30] Contact details for Nick - Email: [email protected]; YouTube Channel: Nick4FourPillars.
[25:55] Thank you to Nick McLean for sharing insights; subscribe to the Private Equity Podcast for weekly episodes.
To connect with Nick, visit his LinkedIn profile at: Nick McLean LinkedIn
Thank you for tuning in!
To get the newest Private Equity episodes, you can subscribe on iTunes or Spotify here.
Lastly, if you have any feedback on the podcast or want to reach out to Alex with any questions, send an email to [email protected]. -
Welcome to The Private Equity Podcast! In this episode, host Alex Rawlings discusses the critical factors behind deal failures and how to steer clear of them. Brian Scanlon from DealGen Partners shares insights on deal origination and sales processes. He stresses prep and presentation, akin to staging a house for sale. Brian pinpoints reasons for deal failures: unprepared sellers, messy finances, and unrealistic valuations. He also covers effective deal structures, boosting multipliers, and seller challenges like cultural clashes and prolonged due diligence. Key takeaway: swift action and clear communication are vital to keep deals on track. Tune in for expert advice on selling a company successfully and avoiding pitfalls.
[00:00] Alex Rawlings introduces the topic of selling a company and the challenge of achieving high multipliers. He welcomes Brian Scanlon, noting his previous podcast on deal origination.[01:18] Brian Scanlon discusses the common reasons deals fail, primarily due to sellers being unprepared. He explains the importance of proper preparation and packaging, akin to staging a house for sale.
[03:40] Brian estimates that nearly all proprietary deals are unprepared and outlines why private equity funds prefer these deals despite the lack of preparation.
[04:39] Brian highlights the role of investment bankers in managing the sale process efficiently, similar to selling a house, and stresses the need for sellers to be upfront about financials and issues.
[07:30] Brian identifies the lack of clean financials and unrealistic valuation expectations as major reasons deals fail. He emphasizes the importance of accurate financial statements and realistic deal structures.
[09:52] Brian explains typical deal structures, including cash at close, earnouts, and equity rollovers, and stresses the importance of understanding these structures before going to market.
[11:17] Brian discusses factors that increase a company's multiplier, such as recurring revenue, customer retention, and quality contracts. He uses the staffing industry as an example to illustrate these points.
[14:13] He explains the challenges of project-based businesses with high customer churn and declining revenue, which generally have lower multipliers.
[16:06] Brian talks about why sellers back out of deals, citing cultural misalignment, process frustration, and the length of the due diligence period as primary reasons.
[19:56] He notes that tighter debt markets and more rigorous due diligence are causing deals to take longer, increasing the risk of the business not appearing as attractive by the closing date.
[22:50] Brian emphasizes the importance of effective communication to keep deals moving and shares examples where delays led to deals falling through. He advises completing the due diligence period quickly to avoid deal collapse.
[25:46] Alex asks for top advice.
[26:20] Alex thanks Brian for joining him on the podcast.
To connect with Brian, visit his LinkedIn profile: Brian Scanlon LinkedIn
Thank you for tuning in!
To get the newest Private Equity episodes, you can subscribe on iTunes or Spotify here.
Lastly, if you have any feedback on the podcast or want to reach out to Alex with any questions, send an email to [email protected]. -
Welcome to The Private Equity Podcast! In this episode, host Alex Rawlings is joined by Paul Swaney, Managing Director of Swaney Group Capital. Formerly with Partners Group and a veteran of McKinsey and Amazon, Paul dives into the intricate world of value creation from an operator turned investor perspective. He shares his journey from the military to the forefront of private equity, discusses the innovative use of media for business growth, and details the strategic operational frameworks that have shaped his successful career. Join us as Paul provides a deep dive into his approach to enhancing portfolio company performance and his insights on the pivotal role of transformation governance in private equity.
Breakdown:
[00:00] Introduction to Paul Swaney, discussing his transition from Partners Group to founding Swaney Group Capital.
[00:10] How Paul uses media to enhance his Private Equity firmâs outcomes.
[00:22] Mention of a successful investment initiated from Twitter.
[00:25] Overview of Paulâs career and insights into his value creation strategies in Private Equity.
[00:55] Paul provides a detailed background of his diverse experiences from military service to corporate roles and Private Equity.
[01:24] Insights into applying lean system in a chemical plant and his recruitment by McKinsey.
[02:21] Challenges of starting his own Private Equity firm during peak deal flow times and growing his team.
[03:17] Common mistakes in Private Equity from deal processing to post-acquisition management.
[04:45] Lessons from Partners Group and the importance of transformation governance post-acquisition.
[06:04] Introduction to the Swaney Group Operating System, focusing on operational excellence.
[07:30] Discussion on maintaining flexibility and strategic planning in business operations.
[09:25] Paulâs effective use of social media for deal origination and brand building.
[10:24] Emphasis on the initial 100-day observational period post-acquisition to understand business intricacies.
[12:16] Typical patterns observed in founder-led businesses and strategic advice for potential acquisitions.
[14:43] Importance of strategic operational assessments in Private Equity investments.
[18:27] Paul discusses leveraging media for enhancing visibility and deal flow in Private Equity.
[19:25] Success stories from using Twitter for business development and investment opportunities.
[21:17] Closing thoughts on the integration of operational systems within Private Equity to enhance performance.
To connect with Paul, you can visit his LinkedIn profile at Paul Swaney LinkedIn.
Thank you for tuning in!
To get the newest Private Equity episodes, you can subscribe on iTunes or Spotify here.
Lastly, if you have any feedback on the podcast or want to reach out to Alex with any questions, send an email to [email protected]. -
Welcome to The Private Equity Podcast! In this episode, host Alex Rawlings talks with Chris Jamroz, CEO of Roadrunner and a former executive at Ascent Global Logistics. Chris shares his extensive experience in logistics and Private Equity, discussing the transition from investment banking to executive leadership. He highlights the common errors in Private Equity, such as focusing too heavily on past performance instead of potential growth, and offers advice on effective leadership and strategic investment. Chris also provides insights into navigating the cyclical nature of the logistics industry and emphasizes the importance of operational expertise in achieving successful exits. This episode offers valuable perspectives on leadership and investment strategies in Private Equity.
Breakdown:
[00:00] Introduction to the podcast and guest Chris Jamroz, highlighting his commitment and unique approach to running a business.
[00:16] Chris reflects on the critical factors contributing to his success over the past four years.
[00:26] Chris offers advice on being a successful Private Equity-backed CEO.
[00:46] Overview of Chris's career trajectory from investment banking to leadership roles in logistics, and the recent sale of Assent to HIG.
[01:16] Start of the in-depth conversation with Chris, exploring his strategies and experiences across various roles.
[01:46] Chris shares his approach as a "shareholder value unlocking specialist" and his operational playbook across the global supply chain.
[02:12] Discussion on common mistakes in Private Equity and portfolio companies, with historical context and advice for modern practices.
[03:58] Chris critiques the backward-looking focus of Private Equity firms and emphasizes the importance of future potential in investment decisions.
[06:21] Chris elaborates on the need for a paradigm shift in Private Equity from past performance to future potentialities.
[07:19] Inquiry into balancing the evaluation of past performance and future potential in Private Equity investments.
[10:15] The significance of having a strong operations team in achieving successful outcomes in Private Equity ventures.
[13:39] Mention of Grata, highlighting its role in enhancing proprietary deal flow with data-driven processes.
[14:07] Chris provides insights into the logistics industry, discussing its trends and cyclicality.
[18:27] Detailing the process and challenges faced during the recent sale of Assent Global Logistics to HIG.
[22:18] Chris shares the personal and professional challenges he faced from taking office to navigating company exits.
[26:47] Advice to Private Equity-backed chief executives on understanding and adapting to business realities.
[33:07] Chris discusses his personal influences and reading habits, emphasizing the value of learning from both successes and failures.
[39:13] Closing remarks and ways to contact Chris Jamroz for further insights and discussions.
To connect with Chris, you can visit his LinkedIn profile at Chris Jamroz LinkedIn.
Thank you for tuning in!
To get the newest Private Equity episodes, you can subscribe on iTunes or Spotify here.
Lastly, if you have any feedback on the podcast or want to reach out to Alex with any questions, send an email to [email protected]. -
Welcome to The Private Equity Podcast! In this episode, host Alex Rawlings chats with Dan Cremons, Founder of Accelera Partners, and discusses the integration of human capital into Private Equity value creation, emphasizing proactive talent management. He shares insights on optimizing teams, strategic hiring, and the significance of due diligence on leadership before acquisition. Cremons stresses learning from hiring mistakes, recognizing biases, and evolving human capital practices. He advocates for nuanced talent assessment, including development and coaching. Resources influencing his approach to value creation and human capital in private equity are also shared.
Breakdown:
[00:00] Introduction to the concept of surgically approaching value creation.
[00:18] Discussion on common hiring mistakes rooted in cognitive biases.
[00:30] Introduction of Dan Cremons, founder of Accelera Partners, and an overview of his background in Private Equity.
[00:59] The focus shifts to the importance of talent, hiring processes, due diligence, and the use of scorecards.
[01:29] Dan Cremons shares his journey from finance to Private Equity and founding Accelera Partners.
[02:56] Key mistake Private Equity firms make: a reactive approach to value creation.
[04:22] The evolving importance of proactive value creation in a competitive Private Equity space.
[05:21] Explanation of value creation and its fundamental meaning.
[07:16] The critical role of people in driving value creation.
[09:12] Introduction to people planning and its importance.
[13:20] The ongoing process of aligning talent with the company's evolving needs
[17:38] Discussion on the iterative effort of people planning throughout an investment.
[20:02] Personal reflections on learning from hiring mistakes.
[23:42] The evolution of human capital practices in Private Equity.
[27:02] Importance of professional training in interviewing and hiring.
[30:44] Due diligence on portfolio companies' executive teams pre-acquisition.
[34:03] The broader scope of organizational due diligence, including leadership, talent, culture, and capabilities.
[37:18] Dan Cremons shares his influences and recommended resources.You can connect with Dan Cremons on LinkedIn by visiting his LinkedIn Page - Link to Dan Cremons' LinkedIn
Thank you for tuning in!
To get the newest Private Equity episodes, you can subscribe on iTunes or Spotify here.
Lastly, if you have any feedback on the podcast or want to reach out to Alex with any questions, send an email to [email protected]. -
Welcome to The Private Equity Podcast! In this episode, host Alex Rawlings engages with Chris Parisi, a partner at Carl Marks Advisors, to discuss how Private Equity firms can more effectively engage with business owners and founders to secure successful deals. Parisi shares insights from his extensive experience in middle-market investment banking, focusing on the nuances of working with family-owned and privately held businesses.
He emphasizes the importance of understanding and respecting the unique challenges these businesses face, such as customer concentration and the need for a cultural fit beyond mere financial valuation. Throughout the discussion, Parisi offers advice on building trust with business owners, the current and future M&A outlook, and how Private Equity firms can adapt their strategies to ensure mutual success in acquisitions.
Breakdown:
[00:00] Alex Rawlings introduces the Raw Selection Private Equity Podcast, welcoming Chris Parisi to discuss Private Equity strategies.
[00:12] Chris traces his career from Ernst & Young to the Blackstone Group and his current role at Carl Marks Advisors.
[01:12] Insight into Chris's career shifts and his significant move to Blackstone Group.[01:42] Chris discusses the evolution of fund sizes he has managed, from his early career to present multi-billion dollar funds.
[02:12] He explains his academic and professional journey in middle market investment banking post-MBA from Northwestern.
[02:42] Overview of Carl Marks Advisors' focus on middle market M&A and family-owned businesses.
[03:09] Chris highlights challenges like customer concentration in family-owned business M&A.
[04:04] Insights on how Private Equity firms may miss opportunities by strictly adhering to their investment criteria.
[05:30] Emphasis on the importance of recognizing management team strengths in investment strategies.
[05:59] Discussion on the 2024 middle market M&A outlook, considering interest rates and earnings visibility.
[07:56] Predictions of increased deal flow activity in late 2024 and 2025 due to more predictable earnings.
[09:50] How Private Equity firms can build acquisition confidence through predictable financial projections.
[10:46] Factors influencing the shallow M&A market of 2023, including COVID-19 and supply chain issues.
[14:18] Chris discusses the need for strategic adjustments in supply chain management post-pandemic.
[17:15] Insights into why family business owners decide to sell, driven by personal motivations and life events.
[18:14] What business owners seek in Private Equity firms beyond financials, like cultural fit and growth plans.
[21:09] Effective engagement strategies for Private Equity firms with business owners during acquisitions.
[25:30] Chris shares his personal influences and recommended readings.
[28:27] Closing remarks and contact information for Chris Parisi for further M&A insights.
To connect with Chris, you can visit his LinkedIn profile at Chris Parisi LinkedIn.
Thank you for tuning in!
To get the newest Private Equity episodes, you can subscribe on iTunes or Spotify here.
Lastly, if you have any feedback on the podcast or want to reach out to Alex with any questions, send an email to [email protected]. -
Welcome to The Private Equity Podcast! In this episode, host Alex Rawlings speaks with RocĂo Heres, Partner at AltamarCam Partners and discusses the competitive nature of capital raising in Private Equity, stressing the value of talent development and succession planning for long-term success. She highlights the shift towards specialization in the industry and the importance of aligning with LP expectations in fundraising efforts. RocĂo shares insights from her international career and addresses the balance between professional success and personal life, advocating for increased female representation in Private Equity. Contact details for further conversations with RocĂo are also provided.
Breakdown:
[00:00] The competitive landscape for capital in Private Equity is discussed.
[00:16] RocĂo Heres, a partner at AltamarCam Partners, is introduced. The episode promises insights on strategies to attract more capital and women into Private Equity, career advice, and more.
[01:14] RocĂo shares her background, highlighting her role in Private Equity investments in North America.
[02:07] The common mistake of Private Equity firms taking their people for granted is discussed, emphasizing the importance of fostering a family-like environment and career growth.
[03:05] The necessity for clear succession planning and career path development within private equity firms to ensure long-term success.
[04:29] RocĂo talks about observing the evolution of Private Equity firms and the importance of stable, process-oriented firms that focus on repeatable and understandable processes.
[07:21] The challenges and opportunities in a competitive capital market are discussed. RocĂo emphasizes the importance of sticking to core investment strategies and learning from various Private Equity firms.
[10:34] The trend towards specialization within Private Equity firms is noted, including sector-focused and generalist firms developing expertise in specific areas.
[13:41] RocĂo comments on the changing fundraising landscape and the increasing effort by Private Equity firms to understand LP needs.
[17:21] The benefits of having an international career and RocĂo's experiences working in different countries are shared.
[20:07] Cultural differences and the welcoming nature of the North American market are discussed.
[22:29] RocĂo talks about her influences, focusing on staying updated with market trends and developments, especially in the secondary market.
[24:24] Addressing the gender gap in Private Equity, RocĂo emphasizes the possibility of balancing a successful career and family life within the industry.
[28:05] Contact information for RocĂo is provided, encouraging listeners to reach out for advice or discussion.
You can connect with Rocio Heres on LinkedIn by visiting her LinkedIn Page here.Thank you for tuning in!
To get the newest Private Equity episodes, you can subscribe on iTunes or Spotify here.
Lastly, if you have any feedback on the podcast or want to reach out to Alex with any questions, send an email to [email protected]. -
Welcome to The Private Equity Podcast! In this episode, we are joined by Sam Adams, Managing Director of Talent at Berkshire Partners. Sam shares invaluable insights into the importance of talent development and hiring beyond the conventional Private Equity norms. Discover Berkshire Partners' innovative approaches to nurturing talent, their unique selection processes, and the impact these strategies have on their overall success. Sam also discusses the cultural elements that support growth within a Private Equity firm and the unconventional paths to hiring that have proven effective. Stay tuned as we dive deep into how Berkshire Partners sets the gold standard in people development.
Breakdown:
[00:00] Introduction to Sam Adams and the focus of the podcast on advanced talent management practices in Private Equity.
[00:28] Overview of Berkshire Partners' innovative approaches to talent development and hiring.
[01:57] Sam shares her unique journey from advertising to becoming the head of talent at Berkshire Partners.
[04:44] Discussion on common mistakes Private Equity firms make in talent assessment and how Berkshire addresses these challenges.
[07:04] In-depth look at how Berkshire develops its talents, including the training and mentorship programs available.
[10:48] Sam discusses the structured mentorship and the robust performance review processes at Berkshire.
[14:08] Influence of firm culture on talent development and the integration of functional experts within deal teams.
[18:00] Details on the managing director development process and feedback mechanisms used at Berkshire.
[22:12] Sam emphasizes the importance of getting the hiring process right to ensure smooth operations and development within the firm.
[28:49] Recent changes and improvements in Berkshire's selection process based on lessons learned.
[33:00] Further discussion on the non-predictive nature of traditional educational scores in hiring.
[38:16] Explanation of Berkshireâs comprehensive approach to building internal infrastructure to support its operations and investment strategies.
[42:00] Exploration of the firm's cultural emphasis on talent and the historical roots of this focus.
[45:22] Closing remarks and thanks to Sam for her insights.
To connect with Sam, you can visit her LinkedIn profile here.
Thank you for tuning in!
To get the newest Private Equity episodes, you can subscribe on iTunes or Spotify here.
Lastly, if you have any feedback on the podcast or want to reach out to Alex with any questions, send an email to [email protected]. -
Welcome to The Private Equity Podcast! This is the first episode in The Playbook Series. In this episode, host Alex Rawlings speaks with Carl Cox, the CEO of 40 Strategy. Carl shares insights on increasing exit multiples for private equity investments. Highlighting the gap in data-driven strategy, Cox introduces a software tool for strategic planning that focuses on business improvements to positively impact exit multiples. He emphasizes the importance of reducing business risks and enhancing sales processes as key strategies. The discussion also explores the role of leading indicators in driving growth.
Breakdown:
[00:00] Carl Cox emphasizes the irony of businesses claiming to be data-driven except in strategy and discusses the importance of focusing on strategy to enhance exit multiples.
[01:02] Introduction to the Playbook series podcast with Carl Cox, focusing on actionable insights for Private Equity firms and their portfolio companies.
[01:52] Carl Cox shares insights on leading strategy over business operations to maximize EBITDA and increase exit multiples by focusing on business rather than in-business activities.
[02:48] Examples of strategies to reduce business risks and increase exit multiples, including diversifying customer concentration and building a capable senior team.
[04:16] Introduction of a new software tool that Carl Cox describes as the "holy grail" for strategic planning, offering the ability to prioritize and monetize areas of improvement to impact exit multiples directly.
[07:06] Discussion on the challenges of choosing what business aspects to work on and how the new software can focus efforts on what will move the needle the most.
[10:19] The conversation shifts towards the importance of reducing business risks and improving sales management processes as critical factors in increasing a company's multiple.
[12:38] Carl Cox outlines common issues in portfolio companies, such as poor sales management, and suggests focusing on leading indicators to drive significant improvements.
[15:05] The concept of leading indicators is explored further with an example from a school district, illustrating how identifying and tracking the right metrics can lead to substantial business growth.
[18:19] Discussion on the negotiation process in Private Equity deals and how identifying and addressing risk areas can lead to better exit multiples.
[20:28] Carl Cox talks about the need for businesses to have a clear focus on key areas that can increase multiples, emphasizing the importance of sales management and risk reduction.
[23:23] The benefits of implementing strategies focused on key leading indicators and ensuring a customer-centric approach to business improvements.
[27:50] Carl Cox offers listeners a special opportunity to receive a free signed copy of his book for US-based listeners and mentions where others can find the book online.
[32:03] Closing remarks, thanking Carl Cox for his insights into improving exit multiples and the role of strategic planning in value creation.
You can connect with Carl Cox on LinkedIn by visiting his LinkedIn Page.Thank you for tuning in!
To get the newest Private Equity episodes, you can subscribe on iTunes or Spotify here.
Lastly, if you have any feedback on the podcast or want to reach out to Alex with any questions, send an email to [email protected]. - Vis mere
