Best But Never Final: Private Equity's Pursuit of Excellence

In this episode of "Best But Never Final," hosts Lloyd Metz, Doug McCormick, Sean Mooney, and special guest Dave Roberts from Houlihan Lokey explore the shifting landscape of M&A markets and the strategic maneuvers private equity firms employ in response.Episode Highlights:1:04 - Introduction of Dave Roberts and the evolving M&A market's impact on deal flows.9:47 - Performance insights of private equity portfolios amid economic fluctuations.15:11 - Examination of the backlog in deal introductions and the disconnect between buyer and seller expectations.22:00 - The critical role of sponsor coverage in investment banking for bridging between private equity firms and market opportunities.38:03 - Strategies for private equity firms to effectively engage with sponsor coverage professionals and optimize deal outcomes.For more information on Houlihan Lokey, go to https://hl.com/For more information on Dave Roberts, go to https://www.linkedin.com/in/dave-roberts-hlFor more information on the podcast, visit bestbutneverfinal.buzzsprout.com and embark on your journey to private equity excellence today.Visit us on LinkedIn at https://www.linkedin.com/company/best-but-never-final-podcast/Visit us on Instagram at https://www.instagram.com/bestbutneverfinal/For information on HCI Equity Partners, go to https://www.hciequity.comFor information on ICV Partners, go to https://www.icvpartners.comFor information on BluWave, go to https://www.bluwave.net

In this episode of "Best But Never Final," join Lloyd Metz, Doug McCormick, and Sean Mooney as they navigate the choppy waters of today's economic landscape and its implications for private equity portfolio companies. Amidst moderate inflation, groundbreaking technological advancements, and significant geopolitical risks, our hosts dissect how these factors are influencing the strategic direction and operational decisions within their portfolio companies. From analyzing consumer sentiment to unraveling the resilience found within the lower middle market, this episode offers a panoramic view of economic resilience and adaptability.Listeners will gain insights into:1:27 - An overview of current economic indicators and their impact on the private equity sector.3:35 - The paradox of strong consumer sentiment amidst economic headwinds and what it signals for businesses.9:47 - Real-world reflections on portfolio company performance in the face of economic flux, shared by Doug and Lloyd.15:19 - Strategic moves made by portfolio companies during economic downturns, emphasizing the value of investing in top-tier talent and cutting-edge technology.22:24 - Approaches to nurturing revenue growth and enhancing operational efficiencies during uncertain times, with a focus on innovative pricing and marketing strategies.34:11 - A deep dive into optimizing operations and managing costs, highlighting the importance of continuous process improvement and prudent capital allocation.41:29 - Examining the role of acquisitions and capital structure strategy as tools for navigating economic uncertainty, advocating for a conservative approach to leverage and emphasizing the importance of banking relationships.This episode is essential listening for anyone looking to grasp the economic nuances affecting private equity and how seasoned veterans like Lloyd, Doug, and Sean utilize this knowledge to strengthen and expand their portfolio companies. Tune into "Best But Never Final" for an insightful journey into the strategies that guide private equity through today's economic challenges and opportunities.For more information on the podcast, visit bestbutneverfinal.buzzsprout.com and embark on your journey to private equity excellence today.Visit us on LinkedIn at https://www.linkedin.com/company/best-but-never-final-podcast/Visit us on Instagram at https://www.instagram.com/bestbutneverfinal/For information on HCI Equity Partners, go to https://www.hciequity.comFor information on ICV Partners, go to https://www.icvpartners.comFor information on BluWave, go to https://www.bluwave.net

Dive deep into the heart of private equity diligence processes with Lloyd Metz, Doug McCormick, and Sean Mooney in this insightful episode of "Best But Never Final." The trio unravels the complexities of third-party diligence, shedding light on the essential tools that private equity firms employ to assess, verify, and envision the potential of their investments. From the critical Quality of Earnings review to comprehensive market studies and management assessments, this episode covers the gamut of due diligence activities that underpin successful private equity transactions.Listeners will explore:1:00 - The pivotal role of third-party diligence in private equity, including the moments that can induce heart palpitations as significant sums are spent without guarantee of a deal closure.8:15 - An in-depth look at the major categories of third-party diligence: Quality of Earnings, market studies, management assessments, legal work, IT diligence, and insurance.15:30 - The nuanced differences between an audit and a Quality of Earnings review, and why the latter is crucial for understanding the true financial performance of a business.22:45 - How market studies (commercial due diligence) and management assessments play a critical role in evaluating the potential and leadership of target companies.30:00 - The sequencing of diligence activities and the strategic importance of each in the investment process, including the evolving landscape of legal, IT, and insurance diligence.Join Lloyd, Doug, and Sean as they navigate through the diligence landscape, offering invaluable insights into the tools and strategies that define the investigative phase of private equity. Whether you're a seasoned professional or new to the private equity world, this episode provides a comprehensive understanding of the diligence process, highlighting its significance in avoiding pitfalls and unlocking transformative growth opportunities.For more information on the podcast, visit bestbutneverfinal.buzzsprout.com and embark on your journey to private equity excellence today.Visit us on LinkedIn at https://www.linkedin.com/company/best-but-never-final-podcast/Visit us on Instagram at https://www.instagram.com/bestbutneverfinal/For information on HCI Equity Partners, go to https://www.hciequity.comFor information on ICV Partners, go to https://www.icvpartners.comFor information on BluWave, go to https://www.bluwave.net

In this engaging episode of "Best But Never Final," hosts Lloyd Metz, Doug McCormick, and Sean Mooney demystify the pivotal role of the Chief Financial Officer (CFO) within the private equity (PE) landscape. As they navigate through the multifaceted responsibilities and evolving nature of the CFO role, the discussion illuminates why a strategic CFO is indispensable for PE-backed companies. From being the co-pilot to the CEO to mastering the art of translation between financials and business operations, this episode explores the journey from a competent to a strategic CFO and the essential traits that define success in this dynamic role.Listeners will discover:1:45 - The foundational responsibilities of a CFO in PE and the significance of evolving beyond financial reporting to strategic partnership.3:09 - Analogies that capture the essence of the strategic CFO role, comparing it to key figures in military and cinematic narratives.7:47 - The challenges and opportunities in the career progression of a CFO within the fast-paced environment of PE-backed companies.14:24 - How PE firms approach the selection process for a CFO, emphasizing the importance of intellectual horsepower, experience, and interpersonal skills.21:08 - Key strategies for CFOs to excel in their role, highlighting loyalty to the enterprise, integrity, and the ability to be a resource across the organization.35:54 - The nuanced reporting structure of CFOs in PE, including the direct and dotted line reporting to the CEO and the PE firm, respectively."Best But Never Final" offers a deep dive into the critical role of the CFO in steering PE-backed companies towards growth and success. Whether you're an aspiring CFO, a seasoned financial leader, or simply fascinated by the strategic interplay within private equity, this episode provides valuable insights into making impactful contributions in the high-stakes world of private equity.For more information on the podcast, visit bestbutneverfinal.buzzsprout.com and embark on your journey to private equity excellence today.Visit us on LinkedIn at https://www.linkedin.com/company/best-but-never-final-podcast/Visit us on Instagram at https://www.instagram.com/bestbutneverfinal/For information on HCI Equity Partners, go to https://www.hciequity.comFor information on ICV Partners, go to https://www.icvpartners.comFor information on BluWave, go to https://www.bluwave.net

Dive into the world of private equity with industry experts as they discuss the evolution of entryways into the sector, from traditional roles to operational expertise. Gain insights on strategic pivot points offered by business school, diverse pathways into private equity, and actionable advice for aspiring professionals. The podcast offers recommendations on literature to enhance skills crucial for success in the industry.

In this episode of Best But Never Final Lloyd Metz, Doug McCormick, and Sean Mooney dive into the heart of private equity's strategic decision-making and deal sourcing processes. This episode peels back the layers on how private equity firms identify their investment focus, align with Limited Partners' (LPs) expectations, and navigate the competitive landscape to source potential opportunities. Through a detailed discussion, the trio elucidates the evolution from generalist approaches to the specialized strategies that now define the industry, highlighting the critical role of deep market knowledge and network building in successful deal sourcing.Episode Highlights:0:36 - Opening discussion on the strategic focus of private equity investments and the imperative of specialization.1:26 - Doug McCormick outlines how private equity firms delineate their investment areas and craft detailed investment theses.3:12 - The significance of adhering to LPs' expectations and the move towards specialization for competitive advantage.10:02 - Insights into the journey from being industry generalists to adopting specialized investment strategies.13:31 - The art of saying 'no' and the importance of focus in the selection of investment opportunities.24:27 - Exploring adjacent markets for new investment opportunities and forming new investment theses.43:32 - Differentiating between sourcing strategies for platform investments and add-on acquisitions.51:08 - Discussing the future of private equity branding and the potential for direct engagement with investment targets."Private Equity Focus: Shaping Investment Strategies and Sourcing Excellence" offers an enlightening journey through the strategic considerations that guide private equity investments. Lloyd Metz, Doug McCormick, and Sean Mooney share their expert insights on the evolution of investment focus, the criticality of specialization, and the nuanced approaches to sourcing deals in today's competitive market. This episode is an invaluable resource for anyone interested in the behind-the-scenes workings of private equity, from industry newcomers to seasoned professionals looking to refine their strategic approach. Join us as we navigate the intricacies of private equity investment strategies and sourcing excellence.For more information on the podcast, visit bestbutneverfinal.buzzsprout.com and embark on your journey to private equity excellence today.Visit us on LinkedIn at https://www.linkedin.com/company/best-but-never-final-podcast/Visit us on Instagram at https://www.instagram.com/bestbutneverfinal/For information on HCI Equity Partners, go to https://www.hciequity.comFor information on ICV Partners, go to https://www.icvpartners.comFor information on BluWave, go to https://www.bluwave.net

About the Episode: In this enlightening episode of "Best But Never Final," hosts Doug McCormick, and Sean Mooney delve into the intricate process of value creation within the private equity landscape, from the perspective of both the PE firm and the portfolio company CEO. Featuring Scott Milberg, CEO of AmerCareRoyal, a portfolio company of HCI Equity Partners, the conversation explores the transformative journey of AmerCareRoyal from a family-owned business to a leading supplier in the food service industry. This episode offers a rare glimpse into the collaborative dynamics between a private equity firm and its portfolio company, highlighting the strategies, challenges, and successes that drive exponential growth and value creation.Episode Highlights:00:35 - Introduction to the episode's focus on value creation within private equity.01:30 - Scott Milberg shares the history and evolution of AmerCareRoyal.07:05 - Discussion on HCI's approach to value creation and portfolio company growth.18:59 - The role of job creation in private equity's contribution to the economy.24:53 - Scott Milberg outlines four pillars of AmerCareRoyal's value creation strategy.38:13 - Best practices for CEOs working with private equity firms.41:36 - Future challenges and opportunities in continuing the path of value creation.For more information on AmerCareRoyal, go to www.amercareroyal.comFor more information on Scott Milberg, go to www.linkedin.com/in/scott-milberg-92b56018/In this episode, listeners are treated to an in-depth conversation that spans the initial acquisition of a family-owned business by HCI, through the strategic expansions and operational enhancements that catapulted AmerCareRoyal to nearly a billion in revenue. Scott Milberg's firsthand account provides valuable insights into the CEO's role in navigating the partnership with a private equity firm, emphasizing the importance of alignment, transparency, and a shared vision for growth. Doug McCormick's contributions shed light on HCI's philosophy towards fostering sustainable growth and the critical role of human capital in achieving transformational success. This episode is a testament to the power of strategic private equity partnerships in driving innovation, growth, and economic impact.For more information on the podcast, visit bestbutneverfinal.buzzsprout.com and embark on your journey to private equity excellence today.Visit us on LinkedIn at https://www.linkedin.com/company/best-but-never-final-podcast/Visit us on Instagram at https://www.instagram.com/bestbutneverfinal/For information on HCI Equity Partners, go to https://www.hciequity.comFor information on ICV Partners, go to https://www.icvpartners.comFor information on BluWave, go to https://www.bluwave.net

About the Episode: In this episode of "Best But Never Final," Lloyd Metz, Doug McCormick, and Sean Mooney dissect the intricate incentive structures and financial mechanics at the heart of the private equity world. They embark on a detailed exploration of how limited partners (LPs) kickstart the momentum within the private equity sphere, influencing strategies and operations down to the portfolio companies. This episode is an essential listen for those looking to grasp the strategic foundations of private equity, offering a thorough understanding of the sector’s dynamics from investment initiation to portfolio company transformation.Episode Highlights:[00:00:34]: Introduction to the dynamics of private equity and the pivotal role of limited partners (LPs).[00:06:47]: Insights into the critical financial metrics of IRR (Internal Rate of Return) and MOIC (Multiple of Invested Capital).[00:13:04]: Examination of how LP expectations shape private equity firm strategies.[00:21:17]: Discussion on the operational and strategic implications for portfolio companies within the private equity ecosystem.[00:28:29]: The evolution of value creation strategies beyond financial engineering in private equity.[00:34:35]: Reflections on the broader economic impact of private equity, including job creation and market efficiency.This episode peels back the layers of private equity, revealing the financial principles and incentive systems that drive the industry. Starting with the role of LPs in setting the stage for private equity investments, the hosts delve into the importance of IRR and MOIC in guiding private equity firms' strategies. They discuss the evolving nature of value creation within the industry, highlighting the shift towards operational and strategic enhancements. Through engaging dialogue, the hosts illuminate the alignment of incentives across the private equity value chain, underscoring the industry's significant contributions to economic growth and job creation. This comprehensive discussion offers valuable insights for professionals within the private equity sector and those curious about its inner workings.For more information on the podcast, visit bestbutneverfinal.buzzsprout.com and embark on your journey to private equity excellence today.Visit us on LinkedIn at https://www.linkedin.com/company/best-but-never-final-podcast/Visit us on Instagram at https://www.instagram.com/bestbutneverfinal/For information on HCI Equity Partners, go to https://www.hciequity.comFor information on ICV Partners, go to https://www.icvpartners.comFor information on BluWave, go to https://www.bluwave.net

In this insightful episode of "Best But Never Final," join hosts Sean Mooney, Doug McCormick, and Lloyd Metz as they delve into the critical phase of private equity – the exit strategy. Learn how seasoned professionals approach the endgame of their investment journey, ensuring they've built businesses that can withstand market volatility and attract the right buyers. The trio shares their wisdom on timing the market, fostering durable business models, and the importance of long-term value creation over short-term gains. They also explore innovative financial tools like continuation vehicles and partnership deals that provide both liquidity and the opportunity for sustained growth.Key takeaways include:1:29 - The impact of exit timing on total return profiles.7:20 - Strategies to build businesses that thrive through market cycles.17:19 - The nuanced art of balancing investor IRR expectations with long-term business health.25:44 - Bringing in a General Partner (GP) to help prepare for an exit.36:05 - Common pitfalls to be aware of when considering an exit.Listeners will gain a deeper understanding of the private equity landscape, from assessing macroeconomic indicators to geopolitical risks, and how these factors influence exit planning. This episode is a treasure trove of actionable advice for business owners considering PE investment, limited partners, and rising PE professionals looking to sharpen their acumen and navigate the complexities of the private equity world.Don't miss the next episode, where we'll discuss aligning management incentives with equity ownership, and how this drives company performance and successful exits. Tune in to "Best But Never Final" for unparalleled industry insights that keep you ahead of the curve.For more information on the podcast, visit bestbutneverfinal.buzzsprout.com and embark on your journey to private equity excellence today.Visit us on LinkedIn at https://www.linkedin.com/company/best-but-never-final-podcast/Visit us on Instagram at https://www.instagram.com/bestbutneverfinal/For information on HCI Equity Partners, go to https://www.hciequity.comFor information on ICV Partners, go to https://www.icvpartners.comFor information on BluWave, go to https://www.bluwave.net

Welcome to the third episode of "Best But Never Final," where private equity (PE) veterans Sean Mooney, Doug McCormick, and Lloyd Metz usher in the new year with a candid discussion on the lessons learned and the strategies for the future. As we turn the calendar page, our hosts delve into the significance of year-end reflection, the importance of process optimization before technology adoption, and the anticipation of trends shaping the investment landscape in 2024.This episode serves as a masterclass for limited partners, business owners considering private equity investment, and rising private equity professionals. It offers a unique blend of personal introspection from our hosts and their professional acumen, providing a holistic approach to business and life. Discover how they evaluate the past year's successes and setbacks, and how these insights inform their forward-looking plans.Listen as the conversation covers the value of mindfulness and gratitude in personal life, the impact of AI technology on business processes, and the tactical steps businesses take to future-proof against an ever-evolving economic backdrop. The hosts share their perspectives on the macroeconomic indicators that guide their investment decisions and the importance of staying agile in a world of geopolitical uncertainties.This episode is not just about setting resolutions but about actionable strategies that will resonate with anyone aiming to navigate the complexities of the private equity world with confidence. Tune in to "Best But Never Final" and join a community that values the power of reflection, the pursuit of growth, and the wisdom to embrace change.For more information on the podcast, visit bestbutneverfinal.buzzsprout.com and embark on your journey to private equity excellence today.Visit us on LinkedIn at https://www.linkedin.com/company/best-but-never-final-podcast/Visit us on Instagram at https://www.instagram.com/bestbutneverfinal/For information on HCI Equity Partners, go to https://www.hciequity.comFor information on ICV Partners, go to https://www.icvpartners.comFor information on BluWave, go to https://www.bluwave.net