Deal Sourcery

Discover how private equity firms can tackle the challenge of sourcing consistent deals. The discussion highlights the cyclical nature of deal flow and the importance of dedicated business development roles. Learn about setting measurable goals, managing pipelines with detailed stages, and fostering accountability. Plus, find out how building strong relationships with investment bankers can enhance deal coverage. Dive into strategic goal-setting and the crucial role of mentorship for effective collaboration and communication in sourcing teams.

Bill Nunan, seasoned private equity expert with extensive experience working across multiple verticals and current CEO of Lexipol, joins the podcast today to share his deep knowledge of the private equity world. Along the way, he offers a clear explanation of what it means to be a private equity operator, the evolution of best practices, and how these changes have shaped today’s business landscape. Bill emphasizes the importance of strategic planning, particularly in the context of add-on acquisitions, and the value of building strong relationships with founders. Our guest also discusses how to manage daily priorities, focusing on achieving destination economics while balancing the challenges that come with mergers and acquisitions. He shares actionable advice on the collaborative nature of private equity, explaining how operators and sponsors can work together to create long-term value through strategic partnerships. The conversation as shared here today highlights the importance of developing a platform story to guide business strategy and concludes with key insights on building effective teams and managing deal sourcing relationships. For anyone navigating the fast-paced world of private equity, this episode delivers essential strategies for success from a proven industry leader.Episode Highlights:00:00 Intro04:38 Transitioning from Public to Private Equity05:45 Evolution of Best Practices in Private Equity06:50 Role of a Private Equity Operator Explained09:52 Daily Responsibilities of a Private Equity Operator11:42 Focusing on Destination Economics for Growth14:46 Importance of Strategic Planning for Add-On Acquisitions18:24 Collaborative Approach Between Sponsors and Operators22:28 Key Concerns of Founders During Add-On Acquisitions24:55 Framework for Managing Deal Sourcing Relationships29:11 Managing Simultaneous Deal Pursuits32:42 CEO’s Role in Add-On Acquisition Strategy36:51 Building a Platform Story for Business Strategy39:41 Defining a Strong Platform Story for Market Positioning41:18 Lexipol's Global Mission in Public Safety Management43:22 Advice for Deal Sourcing and Building Relationships44:59 Changes in Deal Sourcing Over Time46:12 Best Practices for Effective Deal Sourcing Outreach49:28 Private Equity as a Pervasive Business Model52:41 Building and Leading Powerful Teams as a CEO53:42 Traits of Effective Private Equity Partners55:41 The Importance of Collaboration Between Operators and SponsorsKey Takeaways:"A private equity operator is hired to deliver destination economics. Growth in EBITDA is the mission. Challenges don't change that.""The secret to success is building a powerful leadership team. Develop opportunities for the organization.""Prioritize actions that drive the biggest impact.""A good platform story creates uniqueness and differentiation. It defines a space you can own.""Private equity is pervasive. Study it, become an expert. It's different from founder-led or public companies.""Building powerful teams is my greatest strength. Invest time in developing leaders and making them successful.""Strong relationships with founders buffer tough moments in deals. They help align post-transaction expectations.""The rigor of an M&A plan is crucial. Define your targets and dismiss what doesn't fit your strategy."Links:Dan Herr: https://www.linkedin.com/in/danielherr/Matt Rooney: https://www.coastalpartners.co/Bill Nunan: https://www.linkedin.com/in/billnunan/

Rod Jimenez, CEO of Sceptre Hospitality Resources (SHR), joins the podcast today to share his experience and insights on driving technological innovation in the hospitality industry. He reviews some of SHR’s history as well as its recent strategic partnership with Access Group and Guestline, highlighting how their AI-powered solutions and automation streamline hotel management. He explains how, with SHR’s unified platform, hotels can optimize guest booking, revenue management, and distribution across multiple channels. Rod also emphasizes the importance of building strategic partnerships, including private equity, to drive long-term business growth in the hotel industry. Today’s episode is filled with essential insights into how the future of hospitality tech is shaping the industry, and how SHR fulfills its role as an industry leader, helping hotels succeed through innovation.Episode Highlights:0:00 Intro: Hotel Tech M&A & SHR's Access Partnership1:15 SHR's Growth Story: Hotel Management Technology2:21 SHR's Hotel Tech Stack: Unified Application Suite4:38 Private Equity in Hotel Tech: First Experiences5:04 Early-Stage Founder & PE: Conversations & Deal Sourcing6:00 Strategic Investor Partnership: SHR & Singapore Investor9:00 Finding the Right PE Partner: Alignment & Outcomes13:00 How Many PE Firms Should a Founder Talk To?14:30 Filtering PE Outreach: Identifying Genuine Interest15:30 Serent Capital & SHR: Building a Relationship17:00 Relationship Building in M&A: Why It Matters21:56 Effective PE Outreach: Engaging Founders Like Rod Jimenez22:17 Responding to PE Outreach: A Founder's Perspective27:30 Inbound M&A Interest: How Much is Normal?28:42 Increased PE Interest: Timing & Market Dynamics30:00 Tracking PE Conversations: A Founder's Process30:31 What Founders Look for in PE Investors35:00 PE Engagement Techniques: What Works for Founders39:00 Private Equity Due Diligence: Approaching New Industries42:30 The Right Time for a PE Deal45:48 Post-Acquisition Integration & The Future of Hotel Tech49:17 The Value of Private Equity: A Founder's Perspective49:31 Private Equity Boards: Impact & Strategic Growth53:27 Deal Sourcing Tips for Private Equity Professionals59:34 Private Equity Defined: Optionality for Founders59:44 Connect with Rod JimenezKey Takeaways:"Build trust and be genuine.""Approach with curiosity, not false conviction. Be honest if you don't know the space.""In private equity, character trumps everything.”"The value of a board is in collective wisdom and pushing you to grow.""Don't stretch your expertise. If you don't know, just say you're curious to learn.""Optionality is key in private equity. It provides choices for founders.""The real work starts after the transaction. Focus on integration and delivering on expectations."Links:Dan Herr: https://www.linkedin.com/in/danielherr/Matt Rooney: https://www.linkedin.com/in/matt-rooney-coastalpartners/Rod Jimenz: https://www.linkedin.com/in/rodrigojimenez/SHR Group: https://shrgroup.com/Coastal Partners: https://www.coastalpartners.co/

In today’s episode, Matt and Dan break down compensation structures in private equity, focusing on sourcing professionals and business development (BD) teams. They emphasize aligning base, bonus, and carry structures to drive scalable capital deployment and discuss how discretionary bonuses and performance-based incentives ensure long-term success. The episode also covers salary ranges across experience levels and highlights the growing importance of BD professionals in shaping firm outcomes.As private equity compensation trends evolve, our hosts outline how aligning incentives with firm goals builds high-performing sourcing teams. From base salary to carry structures, they offer a roadmap for creating competitive, results-driven compensation plans. In today's competitive landscape, firms that implement these strategies will lead in talent acquisition and capital deployment. You can’t afford to miss this must-hear episode packed with crucial insights for thriving in private equity business development.Episode Highlights:00:00 Understand Differences in Private Equity Compensation Structures01:22 Break Down Base, Bonus, and Carry for Sourcing Roles02:31 Identify Standard Compensation for BD Professionals03:40 Review Base Salary Ranges for Sourcing Professionals05:48 Balance Base Salary and Bonus for Maximum Performance06:49 Differentiate Between Junior, Mid-Level, and Senior Tiers07:18 Adjust Bonus Structures Based on Experience09:00 Set Clear Expectations for Base Salary and Bonus10:50 Structure Discretionary and Performance-Based Bonuses11:09 Implement Common Bonus Structures12:42 Tie Discretionary Bonuses to Firm Performance14:54 Incentivize Sourcing Teams16:50 Adopt Performance-Based Bonuses for Larger Teams18:01 Use Common Performance Metrics to Drive Compensation19:06 Decide on Flat or Percentage-Based Bonuses21:12 Distinguish Proprietary vs Banker-Sourced Deal Compensation23:20 Clarify Add-On vs Platform Deal Bonuses25:50 Align Sourcing Compensation with Lehman Fees and Buy-Side Origination27:50 Embrace the Evolution of BD Compensation in Private Equity29:04 Bridge the Gap Between BD and Deal Team Compensation31:00 Offer Carry Compensation for BD Professionals35:15 Use Equity in Sourced Companies as an Incentive37:37 Incorporate Team Bonuses into BD Compensation Plans40:29 Tailor Carry Packages to Attract Top Talent44:10 Plan for Long-Term Carry and Vesting48:08 Adapt Sourcing Compensation to Firm Goals50:44 Prepare for the Future of BD Compensation in Private Equity52:59 Structure Compensation to Build a High-Performing BD Team59:51 Apply Best Practices for Performance-Based BD Compensation01:02:57 Negotiate and Maximize Your Compensation in BD RolesKey Takeaways:"Not every private equity firm is the same. Maybe they're value-focused, or maybe they're a bit more patient. All of that influences compensation structure.""In years where folks have success, the bonus can far surpass their base salary.""The three main pieces of private equity compensation are base salary, bonus, and carried interest or equity.""In years where folks have success, the bonus can far surpass their base salary.""The BD function is maturing. Compensation is growing, and the gap is narrowing between BD professionals and their deal team counterparts."Links:Dan Herr: https://www.linkedin.com/in/danielherr/Matt Rooney: https://www.linkedin.com/in/matt-rooney-coastalpartners/Coastal Partners: https://www.coastalpartners.co/

Kate Hopkins, Founder and CEO of OneGuide, joins hosts Matt Rooney and Dan Herr here today to explore the pivotal role of portfolio operations in private equity. Kate shares valuable insights into how portfolio ops teams not only enhance value for portfolio companies but also generate new deal flow and sourcing opportunities. By leveraging network content, building automated tech stacks, and hosting impactful events, private equity firms can optimize their portfolio operations to fuel growth and outperform competitors.The discussion emphasizes key strategies like using content and events to drive engagement, building efficient sourcing tech stacks, and training business development teams with portfolio data to gain a competitive edge. Kate also stresses that portfolio operations can help firms differentiate themselves by showcasing value beyond capital, which is crucial in winning competitive deals. Whether through virtual events or leveraging advisory networks, the conversation provides practical advice on how private equity firms can maximize portfolio growth without significantly increasing full-time headcount. Today’s episode offers a detailed roadmap for integrating portfolio operations into sourcing processes, highlighting the evolving importance of advisory boards and network utilization in private equity.Episode Highlights:00:00 Portfolio Apps: Choosing Efficiency Over Heaviness01:07 Use Content and Events to Drive Better Deal Flow01:27 Scale Portfolio Ops as Portfolios Expand02:27 Efficient Portfolio Ops: Using Non-FTEs and Experts04:35 Implement Best Practices in Portfolio Operations05:17 Navigating Portfolio Growth Amidst Increasing Competition07:47 Portfolio Ops: Key to Winning Competitive Deals12:07 Leverage Portfolio Data to Engage Prospective Companies16:14 Apply Sales Enablement Tactics to Boost Sourcing19:50 Train Sourcing Teams with Portfolio Insights for Impactful Outreach20:46 Engage Prospects with Events Powered by Portfolio Ops24:05 Merge Product Marketing Strategies with Portfolio Ops for Sourcing25:29 Tap Into Your Portfolio Network for Strategic Deal Sourcing30:07 Build Community Around Your Portfolio to Attract Prospects34:11 Host Regional Dinners to Connect Portfolios and Prospects36:30 Virtual Events: Rotate Through Functions to Engage Portfolio Companies38:10 Use Portfolio Ops Leaders as Anchors for Regional Events42:11 Plan Events Thoughtfully for Maximum Impact46:55 Repurpose In-Depth Content into Digestible Data Snacks48:14 Use Benchmarking Reports to Showcase Portfolio Success52:06 Break Through Prospecting Noise with Personalized InsightsKey Takeaways:"Portfolio ops is becoming table stakes, but there's the expensive, people-heavy way and the efficient way to do it.""Strategies to effectively integrate ops teams with business development.""The competition for interesting investments is getting more intense.""Utilize network content and events to supercharge deal flow.""A lot of firms are starting to document really interesting IP for their portfolio companies.""We help firms do more efficient, higher leverage portfolio ops by tapping into non-FTEs, advisors, and a network of experts."Links:Dan Herr: https://www.linkedin.com/in/danielherr/Matt Rooney: https://www.linkedin.com/in/matt-rooney-coastalpartners/Kate Hopkins: https://www.linkedin.com/in/katelhopkins/OneGuide: https://askoneguide.com/Coastal Partners: https://www.coastalpartners.co/

Welcome to the Deal Sourcery podcast, where hosts Dan Herr and Matt Rooney engage in a captivating discussion with Karl Rectanus, the former CEO and Founder of LearnPlatform. Founded in 2014, LearnPlatform is an edtech company dedicated to creating meaningful impact through data-driven decision-making. The company quickly gained traction, particularly with the launch of the Edtech Top 40, an innovative initiative that highlighted the most engaged tools in the sector, drawing significant attention from private equity and strategic investors.In this episode, Karl shares how LearnPlatform’s mission-driven approach not only fueled rapid growth but also led to a successful acquisition. By aligning their business model with impact goals, the company attracted investment that went beyond financial backing, providing strategic support that accelerated their success. Today’s fascinating conversation documents the strategies and insights that propelled LearnPlatform to the forefront of the edtech industry, and showcases the formidable power of impact-driven growth.Episode Highlights00:00 The Importance of Impact Centered Decision Making00:10 Engaging EdTech Founders for Proprietary Transactions00:41 The Concept of Fail Tests in Entrepreneurship00:47 Building Authentic Relationships with CEOs01:00 The Future of Impact Centered Companies in Private Equity01:12 Key Questions for Engaging and Qualifying Founders01:41 The Journey from Founding to Exiting LearnPlatform02:25 The Origins and Launch of LearnPlatform06:34 Private Equity Interest Sparked by the EdTech Top 4009:44 The Power of Data Driven Market Insights11:11 Increasing Inbound Interest from Private Equity Firms13:38 Screening and Qualifying Potential Investors16:12 Strategic Partnerships with Private Equity Firms18:24 Evaluating Outreach Based on Role and Experience21:01 Aligning Success with Clear Private Equity Strategies25:07 Setting Expectations and Building Trust with Investors28:20 Long Term Relationship Building in Private Equity31:27 Deciding the Right Time to Sell or Raise Funds34:30 Managing Multiple Potential Buyers in the Exit Process36:58 The Advantage of Long Term Engagements42:00 Decision Framework for Choosing the Right Buyer46:46 Post Exit Focus on Advisory and Board Roles50:27 Ideal Roles and Contributions in Private Equity Partnerships52:35 Characteristics of an Ideal Private Equity Partner56:35 The Next Wave of Capitalism: Impact Driven Organizations59:34 Defining Impact and Its Business Benefits01:00:16 Private Equity’s Role as an Impactful ForceKey Takeaways:"The impact we were trying to drive drove our decision making and helped accelerate the scale of the business.""Set expectations and then go beat or exceed those expectations.""I believe in fail tests, setting up not what success looks like, but what absolute failure looks like.""The best way to build authentic, long-term relationships with CEOs is to be consistent and trustworthy.""Diversity on the partner level was a benefit for us. We were named one of the most innovative companies in the world.""The winners in the next 50 years will be those who make the world a better place, not just those with the best financial returns.""Impact is not just ethically correct, it's good for business."Links:Dan Herr: https://www.linkedin.com/in/danielherr/Matt Rooney: https://www.linkedin.com/in/matt-rooney-coastalpartners/Karl Rectanus: https://www.linkedin.com/in/krectanus/Coastal Partners: https://www.coastalpartners.co/

Deal Sourcery is the must-listen podcast for Private Equity professionals aiming to master the art of deal origination. Hosted by Dan Herr - who’s closed over $1B in transactions in the last decade while building and leading world-class deal sourcing teams - and Matt Rooney, a top recruiter in PE business development, we dive into cutting-edge trends, proven tactics, data-driven sourcing strategies and the technology shaping the future of M&A. Each episode features in-depth discussions with exited founders, PE professions and investment bankers, delivering exclusive, actionable insights you won’t find anywhere else. Tune in to elevate your sourcing skills and optimize your firm’s capital deployment.