Afleveringen
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In this episode of the Private Equity Podcast, host Alex Rawlings is joined by Paul Adams, an experienced CEO in the home and residential services sector. Paul shares his extensive experience in leading private equity-backed companies through multiple acquisitions and the challenges of navigating a highly fragmented industry. They dive into why private equity is increasingly focused on the residential services sector, what makes it such an attractive investment opportunity, and the importance of managing labor shortages in a people-driven business.
[00:00] Introduction of Paul Adams.[00:44] Paul’s background in HVAC, electrical, and plumbing services.
[01:38] Challenges private equity faces with mom-and-pop shops in home services.
[02:08] Importance of patience and strong M&A skills in home services.
[02:36] Balancing private equity's need for speed with the slower pace of acquisitions.
[03:33] The emotional side of selling a family legacy and employee concerns.
[03:59] How generational handovers can create trust issues during acquisitions.
[04:28] Building trust and relationships with founders during the process.
[04:57] Paul’s approach to working with contractors in residential services.
[05:26] The people-driven nature of service businesses and their focus on relationships.
[05:53] Addressing concerns of sellers about their employees and legacy post-sale.
[06:52] Challenges in attracting technicians despite the sector's essential nature.
[07:19] Impact of the labor shortage on growth in home services.
[08:19] Acquiring companies to meet demand and gain market share.
[09:18] Changes in the sector, including energy efficiency and government rebates.
[09:48] How government regulations are driving growth in system replacements.
[10:17] Increasing profitability through system replacements and upgrades.
[10:47] Private equity's interest in home services due to favorable cash flow.
[11:15] Low capital requirements and barriers to entry in home services.
[11:41] Challenges for small companies to scale due to limited technicians.
[12:09] Struggles of small businesses in growth because of labor shortages.
[12:35] Fragmentation and integration challenges in residential services.
[13:05] Costs of elevating unsophisticated businesses post-acquisition.
[14:04] Importance of proper systems to meet customer expectations.
[14:33] Paul’s strategy in buy-and-build and lessons learned from past experiences.
[14:57] Avoiding big announcements and press releases post-acquisition.
[15:29] Focusing on investment and continuity to maintain business stability.
[16:19] Benefits of working in the background for better performance.
[17:17] The power of consistency in building successful businesses.
[19:43] Paul’s passion for the residential services industry and M&A challenges.
[20:12] Alex’s closing remarks and a reminder to subscribe to the podcast.
You can connect with Paul Adams 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 Private Equity Podcast, by Raw Selection! In this episode, Alex Rawlings is joined by Richard Brekka, Managing Partner and Co-Founder of Second Alpha. Richard dives deep into the explosive growth of the secondaries market, explaining how his firm provides liquidity to shareholders of private tech companies. The pair discuss the rise of secondary funds, why more companies are staying private longer, and the unique opportunities in the market for smaller, profitable tech companies.
Breakdown:
[00:00] Introduction to Richard Brekka, Managing Partner and Co-Founder of Second Alpha.[00:12] Richard explains the secondary market's growth and why 90% of it is in unicorn companies.
[01:10] Richard’s background and how he got into secondary investing after working in venture capital.
[01:37] The common mistake of holding on to investments too long and the importance of realizing value sooner.
[02:05] Richard explains the two types of secondary markets: fund secondaries and direct secondaries.
[02:58] Growth in secondary funds driven by a lack of liquidity for GPs and the emergence of unicorn companies staying private longer.
[03:58] Richard shares why 90% of transactions in the secondary market are focused on unicorn companies.
[05:25] Discussion on the $2.3 trillion unicorn market and the trillion-dollar opportunity in companies valued between $100 million and $1 billion.
[06:21] How Second Alpha identifies companies for investment by targeting profitable, growing companies over $100 million in revenue.
[07:50] Second Alpha’s approach to providing liquidity to shareholders and building long-term relationships with CEOs.
[08:49] Richard discusses the various reasons shareholders seek liquidity, from personal financial needs to new business investments.
[10:12] The value Second Alpha provides to CEOs and how they become a trusted partner in helping companies toward their exit.
[11:00] Richard explains the challenges of accessing private companies for investment and how Second Alpha overcomes these obstacles.
[11:58] The importance of building trust with CEOs and navigating rights of first refusal in secondary deals.
[13:26] Second Alpha’s role as a helpful partner to the CEOs, offering introductions, advice, and exit planning support.
[14:53] Challenges private companies face after 10 years of growth, including management changes and adapting to market shifts.
[16:22] How companies must pivot and develop new products to continue growing and reach their next phase of success.
[17:20] Second Alpha’s focus on North American technology companies with strong revenue and profitability.
[18:46] The advantage of investing in growth-stage companies at a discount through secondary transactions.
[20:39] The role of artificial intelligence and cloud technologies in transforming industries and the efficiency opportunities they bring.
[22:32] Second Alpha’s focus on disrupting industries like data analytics and finding efficiencies in cloud infrastructure.
You can connect with Richard Brekka 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] -
Zijn er afleveringen die ontbreken?
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In this episode of the Private Equity Podcast, host Alex Rawlings sits down with Chad Kalland, an experienced CEO in the industrial services sector with multiple private equity-backed exits under his belt. Chad shares his insights on navigating cultural changes, integrating acquisitions, and driving growth in a private equity-backed environment. He also dives into key lessons learned from his successful exits, how to keep teams engaged during times of rapid change, and the importance of choosing the right private equity partner.
[00:00] Introduction of Chad Kalland.[00:12] Importance of growing as a platform company with potential runway.
[00:41] Chad’s experience with private equity-backed exits and acquisitions.
[01:46] Mistakes private equity firms make by implementing changes too quickly.
[02:16] Understanding business strengths before making changes.
[02:43] Evaluating talent and their unique skills in an organization.
[03:12] Transitioning from founder-owned businesses to private equity-backed environments.
[03:42] Evaluating a company’s culture before acquisition to ease integration.
[04:11] Incorporating the acquired company’s strengths into the platform.
[04:39] Fostering a merger mindset instead of a takeover during acquisitions.
[05:08] Injecting private equity-backed speed into founder-owned businesses.
[05:38] Bringing acquired leadership into the fold to integrate with the platform.
[06:07] Key lessons learned in integrating companies, especially service lines.
[07:04] Missteps by not integrating acquired companies quickly enough.
[08:02] Adding service lines to increase market share.
[08:30] Ensuring smooth service line integration for long-term growth.
[09:28] Maintaining employee engagement during changes and new processes.
[09:57] Motivating technicians and engineers during transitions.
[10:27] Developing employees and offering leadership opportunities to improve retention.
[11:27] Strategies for retaining employees in a labor-intensive industry.
[11:53] Keeping new hires engaged and committed during the first 90 days.
[12:23] Onboarding and training to improve retention.
[12:52] Lessons from two successful private equity-backed exits.
[13:22] Adapting to private equity decision-making processes with new stakeholders.
[13:51] Finding the right private equity partner for growth.
[14:20] Evaluating private equity partners beyond the highest offer.
[14:49] Choosing between remaining a platform or joining a strategic acquirer.
[15:17] Benefits of staying on as the platform versus integrating into a larger organization.
[16:16] Focusing on high-margin services for profitability.
[17:15] Adding organic growth to acquired companies for value creation.
[18:09] Understanding employee motivation as a leader.
[19:35] Other leadership podcasts and books, like Simon Sinek’s work.
To be added to the book waitlist, you can email [email protected]
Thank you for tuning in!
You can connect with Chad Kalland on LinkedIn by visiting his profile here.
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 Private Equity Podcast, by Raw Selection! In this episode, our host, Alex Rawlings is joined by Marc Jourlait, a seasoned Private Equity Operating Partner with extensive experience as a former CEO, leading multiple successful exits. Marc shares his unique insights into the role of the Operating Partner, the importance of driving value creation early in the investment cycle, and why private equity firms must act quickly in their hold period.
Breakdown:
[00:00] Introduction of Marc Jourlait.[01:36] Overview of Marc’s career journey, from Apple to private equity.
[02:03] Importance of acting quickly in the hold period to create value.
[03:00] Why replacing key personnel, like the CFO, is crucial early in the investment cycle.
[03:30] Causes of delay: risk management and decision-making dynamics in private equity.
[04:30] The importance of early involvement, even pre-close, to maximize value creation.
[04:59] Benefits of operating partners engaging with the management team before deal closure.
[05:49] How early engagement can lead to stronger value creation and faster exits.
[06:18] The operating partner model and its differences between the US and Europe.
[06:46] Riverside’s model of using former CEOs as generalist operating partners.
[07:37] Operating partners at Riverside: from acquisition to exit, staying engaged.
[08:05] Benefits of operating partners serving as board chairmen for governance and guidance.
[09:02] Shift in private equity from financial engineering to operational improvements.
[09:31] Importance of having a clear value creation roadmap from the start.
[10:01] The short five-year hold period in private equity requires fast action.
[11:00] European firms’ reluctance to invest in operating partners compared to the US.
[12:07] How value creation is now more focused on operational improvements over financial strategies.
[12:35] Key areas for value creation: pricing, operations, and cost management.
[13:04] How private equity firms create a clear story to maximize exit premiums.
[14:01] Discussion on employee ownership and its growing adoption in private equity.
[14:37] Riverside’s involvement with Ownership Works and its impact on employee ownership.
[15:07] How Ownership Works offers equity to all employees, driving engagement.
[16:12] Employee ownership as a catalyst for company success and value creation.
[17:57] Impact of employee ownership on engagement and business performance.
[20:14] Marc’s enthusiasm for the Ownership Works program and its positive transformation.
[22:13] Marc’s encouragement for more private equity firms to adopt employee ownership.
[22:41] Importance of employee ownership in driving engagement and maximizing value creation.
[24:04] Marc’s commitment to continuous learning and networking for professional growth.
[24:58] Marc invites listeners to connect with him on LinkedIn.
You can connect with Marc Jourlait 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 Private Equity Podcast by Raw Selection! Alex is joined by Drew Schardt, Vice Chairman and Global Head of Investment Strategy at Hamilton Lane. Drew brings over 17 years of experience at the firm, sharing valuable insights into the current state of private equity, how the market is evolving, and what’s in store for the rest of 2024. He dives into the importance of using data and technology to make informed investment decisions, and how Hamilton Lane is preparing for upcoming opportunities in sectors like healthcare, industrials, and private credit.
Breakdown:[00:00] Introduction to Drew Schardt, Vice Chairman and Global Head of Investment Strategy at Hamilton Lane.
[00:45] Overview of Drew’s role at Hamilton Lane and his background in private equity.
[02:09] Key mistake private equity firms make: not acting quickly enough on management changes.
[03:06] Importance of transparency and using real-time data for better investment decisions.
[04:32] Role of technology and data platforms in improving decision-making in private equity.
[05:59] Private equity's recovery after global downturns.
[06:42] Lower leverage levels compared to the global financial crisis.
[07:37] How private equity evolved with stronger financial resilience and broader acceptance.
[09:00] Soft landing vs. recession risks in the economic outlook.
[09:58] Emerging deal flow and closing the buyer-seller price gap.
[10:56] Impact of global monetary policy on deal-making.
[12:09] Stabilized purchase price multiples aiding deal flow.
[12:53] Increased exit activity and liquidity in private equity markets.
[13:51] Robust deal flow and exits expected in the second half of 2024.
[15:50] How interest rate policies influence pricing and deal-making.
[16:17] Stabilized purchase price multiples across industries.
[17:11] Historical trends showing Q4 as the busiest for deal activity.
[17:40] Managing investment risk through asset selection.
[18:39] Drew’s approach to portfolio diversification and risk management.
[19:43] Key sectors of interest for Hamilton Lane, including healthcare and industrials.
[20:39] Importance of having multiple levers in value creation strategies.
[21:50] Emerging opportunities in private credit, infrastructure, and secondaries.
[24:33] Focus on defensive sectors like healthcare and industrials.
[26:10] How Hamilton Lane is preparing to capitalize on market opportunities.
[31:27] Focus sectors for Hamilton Lane: clinical research, supply chains, and logistics.
[33:05] Supply chain automation as an investment area.
[34:17] Sector-specific investment strategies for Hamilton Lane.
[35:40] How technology is increasing transparency and attracting new investors.
[37:09] Drew’s reading recommendations: "Radical Candor" by Kim Scott and works by Malcolm Gladwell.
[40:00] Closing remarks from Alex.
You can connect with Drew Schardt 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 to The Private Equity Podcast, by Raw Selection! Today, we're joined by Kevin McShane, a seasoned Chief Revenue Officer turned Operating Partner, with a wealth of experience from multiple private equity-backed exits. In this episode, Kevin shares insights on his journey, the impact of AI on driving revenue and EBITDA, and his key learnings from successful exits in the technology sector. We'll also dive into the role of AI in private equity and discuss Kevin's transition from CRO to Operating Partner.
Breakdown:
[00:00] Kevin McShane's Introduction – Overview of Kevin’s career in tech, private equity, and his role as an operating partner.[00:10] Kevin discusses how AI can drive revenue and EBITDA growth.
[00:39] How portfolio companies are using AI for decision-making and growth.
[01:08] 25 years in tech, CRO roles, and his transition to an operating partner.
[03:05] Kevin highlights missed opportunities in private equity due to slow AI adoption.
[04:00] Examples of AI in sales, demand generation, and customer success.
[05:26] How AI implementation led to cost savings and pipeline growth.
[06:24] How AI can be cost-effectively integrated into existing CRM and marketing tools.
[09:42] Insights on recent stock price dips and tech sector trends.
[12:44] Kevin emphasizes the role of strong CFO and leadership relationships in successful exits.
[16:52] The importance of relationships and keeping ego in check for team success.
[19:44] Kevin’s advice on moving from CRO to an operating partner role.
[24:00] How Kevin builds trust and guides teams without direct authority as an operating partner.
[30:41] Collaboration with leadership to develop and own strategic initiatives.
You can connect with Kevin McShane 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 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 Selection’s services, explaining the firm’s 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 “enterprise, team, individual” 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]. -
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 Jordan’s 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 today’s topic and guest, Brad Nathan.[01:15] Exploration of Brad’s 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 firm’s first successful deals.
[10:20] Key decisions and strategies that fueled the firm’s 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 Brad’s 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 “The Second CEO” 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, we’re 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. Mason’s expertise lies in navigating and scaling smaller, often overlooked businesses, and he’s 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 Stewardship’s 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 Stewardship’s focus on pre-middle market businesses, the firm’s 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 journey—from 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 firm’s outcomes.
[00:22] Mention of a successful investment initiated from Twitter.
[00:25] Overview of Paul’s 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] Paul’s 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]. - Laat meer zien
