Built to Sell Radio Ep 514 Inside the Mind of an Acquirer: Lee McCabe on Why the Old Private Equity Playbook Is Dead and the New Model Emerging
Oct 3, 2025
Lee McCabe, a former executive at Meta and Alibaba, now advises private equity firms on modernizing value creation. He explores the demise of the traditional private equity playbook, emphasizing the shift toward operational focus driven by higher interest rates. McCabe highlights the importance of digital capabilities, sector specialization, and how firms like Thoma Bravo thrive through operator-led strategies. He offers insights on how founders can assess PE buyers and what it takes for successful digital transformation, urging them to prioritize relationships over price.
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Old PE Playbook Is Broken
- The old PE playbook of cheap debt and multiple expansion is dying due to higher rates and LP scrutiny.
- Future outperformance will come from firms acting like industrial builders who deploy capabilities, not just capital.
Insist On Day-One Operational Playbooks
- PE firms must get into portfolio companies on day one and execute operational playbooks rather than waiting years for results.
- Seek firms with repeatable playbooks and demonstrated sector expertise like TomaBravo or Vista when selling.
Instrument The Customer Journey
- Build a tech stack and instrument the customer journey to collect 1st-party data across funnel touchpoints.
- Tag and track every lead source so you can measure conversion, monetization, and customer lifetime behavior.
