The Private Equity Podcast, by Raw Selection

 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 alex.rawlings@raw-selection.com.

 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: nmclean@example.com; 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 alex.rawlings@raw-selection.com.

Brian Scanlon from DealGen Partners shares insights on deal origination and sales processes. He discusses reasons for deal failures like unprepared sellers and messy finances. Topics include effective deal structures, boosting multipliers, and challenges in the sales process. Key takeaway: swift action and clear communication are vital for successful deals.

Paul Swaney, Managing Director of Swaney Group Capital, shares insights on using media for business growth, value creation strategies in Private Equity, challenges of starting a PE firm, and career transitions. He discusses successful investments from Twitter, application of lean systems, and the pivotal role of transformation governance in PE.

CEO of Roadrunner and former executive at Ascent Global Logistics, Chris Jamroz, shares insights on Private Equity, emphasizing future value creation over past performance. He discusses navigating market challenges, achieving success through cultural fit, and the importance of diverse reading for leadership lessons.

Dan Cremons, Founder of Accelera Partners, discusses proactive talent management in Private Equity, emphasizing the importance of due diligence on leadership, optimizing teams, and learning from hiring mistakes. He stresses the evolving human capital practices, nuanced talent assessment, and shares resources influencing his approach to value creation. Key topics include common hiring mistakes, proactive value creation, the critical role of people in driving value creation, and the significance of talent in private equity.

Welcome to The Private Equity Podcast! In this episode, host Alex Rawlings engages with Chris Parisi, a partner at Carl Marks Advisors, to discuss how Private Equity firms can more effectively engage with business owners and founders to secure successful deals. Parisi shares insights from his extensive experience in middle-market investment banking, focusing on the nuances of working with family-owned and privately held businesses. He emphasizes the importance of understanding and respecting the unique challenges these businesses face, such as customer concentration and the need for a cultural fit beyond mere financial valuation. Throughout the discussion, Parisi offers advice on building trust with business owners, the current and future M&A outlook, and how Private Equity firms can adapt their strategies to ensure mutual success in acquisitions.Breakdown: [00:00] Alex Rawlings introduces the Raw Selection Private Equity Podcast, welcoming Chris Parisi to discuss Private Equity strategies.[00:12] Chris traces his career from Ernst & Young to the Blackstone Group and his current role at Carl Marks Advisors.[01:12] Insight into Chris's career shifts and his significant move to Blackstone Group.[01:42] Chris discusses the evolution of fund sizes he has managed, from his early career to present multi-billion dollar funds.[02:12] He explains his academic and professional journey in middle market investment banking post-MBA from Northwestern.[02:42] Overview of Carl Marks Advisors' focus on middle market M&A and family-owned businesses.[03:09] Chris highlights challenges like customer concentration in family-owned business M&A.[04:04] Insights on how Private Equity firms may miss opportunities by strictly adhering to their investment criteria.[05:30] Emphasis on the importance of recognizing management team strengths in investment strategies.[05:59] Discussion on the 2024 middle market M&A outlook, considering interest rates and earnings visibility.[07:56] Predictions of increased deal flow activity in late 2024 and 2025 due to more predictable earnings.[09:50] How Private Equity firms can build acquisition confidence through predictable financial projections.[10:46] Factors influencing the shallow M&A market of 2023, including COVID-19 and supply chain issues.[14:18] Chris discusses the need for strategic adjustments in supply chain management post-pandemic.[17:15] Insights into why family business owners decide to sell, driven by personal motivations and life events.[18:14] What business owners seek in Private Equity firms beyond financials, like cultural fit and growth plans.[21:09] Effective engagement strategies for Private Equity firms with business owners during acquisitions.[25:30] Chris shares his personal influences and recommended readings.[28:27] Closing remarks and contact information for Chris Parisi for further M&A insights.To connect with Chris, you can visit his LinkedIn profile at Chris Parisi 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 alex.rawlings@raw-selection.com.

Rocío Heres, Partner at AltamarCam Partners, discusses attracting capital in Private Equity, emphasizing talent development and succession planning. She shares insights on the shift towards specialization, aligning with LP expectations, and the importance of female representation. The episode highlights fostering a family-like environment, career growth, and the necessity of clear succession planning for long-term success in Private Equity.

Sam Adams, Managing Director of Talent at Berkshire Partners, shares insights on talent development and hiring for Private Equity firms. She discusses Berkshire Partners' innovative approaches to nurturing talent, unconventional hiring methods, structured mentorship programs, and firm culture's impact on growth. The podcast explores the significance of broadening talent assessment, optimizing the talent selection process, and insourcing functions within Private Equity firms.

Welcome to The Private Equity Podcast! This is the first episode in The Playbook Series. In this episode, host Alex Rawlings speaks with Carl Cox, the CEO of 40 Strategy. Carl shares insights on increasing exit multiples for private equity investments. Highlighting the gap in data-driven strategy, Cox introduces a software tool for strategic planning that focuses on business improvements to positively impact exit multiples. He emphasizes the importance of reducing business risks and enhancing sales processes as key strategies. The discussion also explores the role of leading indicators in driving growth. Breakdown:[00:00] Carl Cox emphasizes the irony of businesses claiming to be data-driven except in strategy and discusses the importance of focusing on strategy to enhance exit multiples.[01:02] Introduction to the Playbook series podcast with Carl Cox, focusing on actionable insights for Private Equity firms and their portfolio companies.[01:52] Carl Cox shares insights on leading strategy over business operations to maximize EBITDA and increase exit multiples by focusing on business rather than in-business activities.[02:48] Examples of strategies to reduce business risks and increase exit multiples, including diversifying customer concentration and building a capable senior team.[04:16] Introduction of a new software tool that Carl Cox describes as the "holy grail" for strategic planning, offering the ability to prioritize and monetize areas of improvement to impact exit multiples directly.[07:06] Discussion on the challenges of choosing what business aspects to work on and how the new software can focus efforts on what will move the needle the most.[10:19] The conversation shifts towards the importance of reducing business risks and improving sales management processes as critical factors in increasing a company's multiple.[12:38] Carl Cox outlines common issues in portfolio companies, such as poor sales management, and suggests focusing on leading indicators to drive significant improvements.[15:05] The concept of leading indicators is explored further with an example from a school district, illustrating how identifying and tracking the right metrics can lead to substantial business growth.[18:19] Discussion on the negotiation process in Private Equity deals and how identifying and addressing risk areas can lead to better exit multiples.[20:28] Carl Cox talks about the need for businesses to have a clear focus on key areas that can increase multiples, emphasizing the importance of sales management and risk reduction.[23:23] The benefits of implementing strategies focused on key leading indicators and ensuring a customer-centric approach to business improvements.[27:50] Carl Cox offers listeners a special opportunity to receive a free signed copy of his book for US-based listeners and mentions where others can find the book online.[32:03] Closing remarks, thanking Carl Cox for his insights into improving exit multiples and the role of strategic planning in value creation.You can connect with Carl Cox on LinkedIn by visiting his LinkedIn Page.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 alex.rawlings@raw-selection.com.