How to grow from $30M to $1.4Bn enterprise value - From shipping clerk to PE-Backed CEO with Ted Clark
Jan 23, 2024
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Ted Clark, a former shipping clerk turned CEO, shares his journey from a $30M to a $1.4Bn enterprise value. He discusses strategic pitching to private equity, acquisition and integration processes in PE, lessons from public companies, and his rise from shipping clerk to CEO.
Building a strong culture and integrating acquired businesses effectively are crucial for successful integration in private equity.
Continuous learning, hands-on experience, networking, and mentorship are key to personal growth and career advancement, regardless of educational qualifications.
Deep dives
Ted's Career Journey and Buy and Build Strategy
Ted shares his career journey, starting as a shipping clerk and eventually becoming a chief executive officer. He discusses his experience implementing a buy and build strategy in the adhesives and sealants industry, focusing on the fragmented nature of the market and the potential for growth through acquisitions. Ted emphasizes the importance of developing a clear thesis and business plan, as well as building a strong culture and integrating acquired businesses effectively.
Lessons on Integration and Governance
Ted emphasizes the importance of intentional integration and creating a strong culture during the integration process. He advises chief executives and senior leaders in portfolio companies to stay focused on the big picture while balancing short-term and long-term goals. Ted highlights the value of good governance and the role of private equity boards in providing guidance, support, and coaching to management teams. He stresses the importance of ongoing learning and adapting to new challenges, such as inflation and labor shortages.
Value of Lifelong Learning and Challenging Education Standards
Ted discusses the value of lifelong learning and challenging traditional education standards. Drawing from his own experience, he encourages individuals to constantly learn and improve regardless of educational qualifications. Ted shares his belief that personal growth and career advancement are attainable through hands-on experience, networking, and mentorship. He addresses the changing landscape of workforce recruitment, with some companies considering candidates without college degrees and investing in training programs for internal talent.
Ted's Influences and Recommendations
Ted shares his reading and podcast preferences, including historical books and podcasts focused on business and scandals. He recommends books like 'The Code Breaker' by Walter Isaacson and Elon Musk's biography. Additionally, Ted enjoys podcasts like Business Wars and American Scandal, which provide insights into business competition and leadership lessons.
Ted Clarke is an operator turned into a private equity investor and a shipping clerk turned into a CEO. Starting as a shipping clerk, Ted rose to become President & CEO of Products Research & Chemical Corporation (PRC), a global leader in aircraft and construction sealants and coatings. Today, Ted is a partner at Iron Path Capital, a private equity firm that focuses on specialty industrial investments, partnering with business managers on acquisitions and buying and building growth strategies using private equity capital.
What You Will Learn Strategic pitching and selling to Private Equity Acquisition, recapitalization, and integration in PE Public companies Vs. Private Equity growth strategy
Breakdown [00:59] Getting to Know Ted Clarke [02:35] Ted’s experience with acquisition and sales to PE firms [18:02] How to streamline the processes of integration of businesses [26:09] Ted's lessons from Public Companies and PE Firms [34:08] How Ted went from shipping clerk to CEO and writing two books [41:23] Ted's Go-To Self-Improvement Resources [43:44] How to get in touch with Ted [44:15] Ending the show
The Process of Integration How can the CEOs and Senior leaders of portfolio companies and PE enhance the integration process? According to Ted, they have to be intentional not just with the integration process but also with what they are trying to build and the culture they are trying to develop to achieve their goal. Ted's experience in integrating acquisitions is based on the metrics. That is understanding the market you want to be in, the technology, and the characteristics you want to have and making the message simple so that it can permeate down the organization.
Ted also shares that as you evaluate the acquisition, you need to put the time and effort into understanding the history of the business, determining the cost and gross synergies, and how you will integrate the acquired business into your culture. Having an open culture with clear and simple approaches to what you are trying to accomplish makes the integration process easy and transparent. It makes it clear very quickly whether or not the business you want to acquire will buy into your culture, and you can make changes early on.