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Hard vs Less Hard to change. Sage, ServiceTitan, CRM. PE Investment Principals.
Distinguishing between hard and easy elements to change is critical in private equity investment. Fundamental aspects such as industry type and product quality are difficult to alter, while operational elements like management teams and systems can be improved. Opportunities arise in acquiring founder-owned businesses that lack sophisticated management but possess solid foundations for growth. Transitioning from basic systems like QuickBooks to robust platforms such as Sage is feasible and can drive improvement. Focusing on sectors with potential for high returns enables investors to leverage their skills in enhancing operations while building strong teams. The right management can be recruited to navigate growth, transforming small operations into multi-location enterprises. This approach emphasizes that while structural changes are challenging, operational enhancements can significantly elevate a business's performance.