Welcome to the Private Equity Podcast! In this episode, we explore "Private Equity and Technology Transformation" with Alan Williamson. Alan, a seasoned CTO and operating partner, shares insights from his journey—from embedded engineering to navigating Enterprise Java and PE due diligence. He emphasizes crucial operational details affecting portfolio companies, such as cybersecurity and data ownership, and discusses the evolving role of technology in PE.

[00:10] Social engineering is still the number one way to hack a company.

[00:17] Introduction of guest Alan Williamson, CTO, operating partner, and author.

[00:46] Discussion on technology transformation, pitfalls in private equity, and opportunities pre and post-deal.

[01:13] Shares background from embedded engineer to Java development and entry into private equity.

[02:08] Discusses common mistake in portfolio companies: neglecting operational details like domain ownership and software subscriptions.

[03:30] Anecdote on operational oversight challenges in companies due to misplaced responsibilities.

[04:29] Highlights key red flags in due diligence, emphasizing over-reliance on individual technical knowledge within companies.

[05:53] Discussion on technology enablement in private equity and the evolving role of specialized operating partners.

[08:17] Contrasts in-house technical expertise with external consultancy services in private equity firms.

[09:44] Pre-deal considerations including data ownership and regulatory compliance.

[10:37] Security concerns in acquisitions, emphasizing cybersecurity diligence and compliance across different states.

[14:37] Discusses social engineering as a primary hacking method in corporate security breaches.

[15:00] Post-deal implementation strategies including securing operations and aligning with PE firm objectives.

[18:58] Maximizing data value through machine learning and leveraging historical data for business insights.

[21:23] Personal influences and recommendations, highlighting interests in movies and older business literature.

[23:46] Alex Rawlings wraps up the podcast.

You can connect with Alan Williamson 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, join us as we delve into intentional business growth strategies with Tim O'Reilly. Learn key insights for success.

[00:11] Tim discusses the influence of certain books on shaping strategies.

[01:19] Introduction to Tim O'Reilly and focus on intentional business growth strategy.

[02:17] Reflections on Frontier Service Partners' successful exit and the importance of strategy.

[03:17] Tim elaborates on the intentional strategy at Guild Garage Group.

[04:11] Key elements of successful business strategy, including leadership alignment.

[05:03] Analogies are drawn from crew dynamics to highlight clear leadership importance.

[06:00] Success story from Frontier Service Partners, emphasizing leadership impact.

[07:48] Discussion on transferring successful strategies to future endeavors.

[09:14] Importance of culture and consistency in delivering exceptional service.

[10:07] Utilizing weekly leadership meetings for consistency and accountability.

[11:07] Reference to "Atomic Habits" by James Clear and daily habits' significance.

[12:59] Transitioning to intentional strategy at Guild Garage Group, emphasis on leadership development.

[14:25] Focus on sustainable business strategy beyond financial goals.

[15:21] Prioritizing leadership development and employee training.

[16:47] Investing in leadership training and development programs.

[18:15] Discussion on employee experience and its impact on customer satisfaction.

[19:39] Creating career paths and supporting employees' growth.

[20:38] Driving brand loyalty through consistent, high-quality customer experiences.

[21:58] Anticipating referrals and exponential business growth through service excellence.

[22:58] Balancing cost optimization with growth strategies.

[23:27] Mention of partnership with Grata for data-driven deal flow enhancement.

[23:55] Focus on leadership development plans and training initiatives.

[24:22] Basic principles of leadership development.

[24:50] Understanding personal goals of leaders and aligning them with work objectives.

[26:16] Insights on time management and personal well-being for effective leadership.

[27:42] Tools for assessing strengths and consistent leadership training importance.

[29:07] Importance of documenting personal and work goals.

[29:34] Aligning leadership training with business needs.

[31:54] Evolving leadership training programs to address business challenges.

[33:20] Commitment to strength-based leadership.

[34:45] Regular reassessment of strengths for alignment.

[37:35] Tim's advice on transitioning from CFO to CEO.

[42:42] Encouragement for aspiring leaders to seek growth opportunities.

[43:36] Tim shares his contact information for further assistance.

[44:06] Conclusion and invitation to subscribe to the Private Equity Podcast.

You can connect with Tim O'Reilly 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 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.

Welcome to The Private Equity Podcast! In this episode, host Alex Rawlings discusses the critical factors behind deal failures and how to steer clear of them. Brian Scanlon from DealGen Partners shares insights on deal origination and sales processes. He stresses prep and presentation, akin to staging a house for sale. Brian pinpoints reasons for deal failures: unprepared sellers, messy finances, and unrealistic valuations. He also covers effective deal structures, boosting multipliers, and seller challenges like cultural clashes and prolonged due diligence. Key takeaway: swift action and clear communication are vital to keep deals on track. Tune in for expert advice on selling a company successfully and avoiding pitfalls.

[00:00] Alex Rawlings introduces the topic of selling a company and the challenge of achieving high multipliers. He welcomes Brian Scanlon, noting his previous podcast on deal origination.

[01:18] Brian Scanlon discusses the common reasons deals fail, primarily due to sellers being unprepared. He explains the importance of proper preparation and packaging, akin to staging a house for sale.

[03:40] Brian estimates that nearly all proprietary deals are unprepared and outlines why private equity funds prefer these deals despite the lack of preparation.

[04:39] Brian highlights the role of investment bankers in managing the sale process efficiently, similar to selling a house, and stresses the need for sellers to be upfront about financials and issues.

[07:30] Brian identifies the lack of clean financials and unrealistic valuation expectations as major reasons deals fail. He emphasizes the importance of accurate financial statements and realistic deal structures.

[09:52] Brian explains typical deal structures, including cash at close, earnouts, and equity rollovers, and stresses the importance of understanding these structures before going to market.

[11:17] Brian discusses factors that increase a company's multiplier, such as recurring revenue, customer retention, and quality contracts. He uses the staffing industry as an example to illustrate these points.

[14:13] He explains the challenges of project-based businesses with high customer churn and declining revenue, which generally have lower multipliers.

[16:06] Brian talks about why sellers back out of deals, citing cultural misalignment, process frustration, and the length of the due diligence period as primary reasons.

[19:56] He notes that tighter debt markets and more rigorous due diligence are causing deals to take longer, increasing the risk of the business not appearing as attractive by the closing date.

[22:50] Brian emphasizes the importance of effective communication to keep deals moving and shares examples where delays led to deals falling through. He advises completing the due diligence period quickly to avoid deal collapse.

[25:46] Alex asks for top advice.

[26:20] Alex thanks Brian for joining him on the podcast.

To connect with Brian, visit his LinkedIn profile: Brian Scanlon 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.

Welcome to The Private Equity Podcast! In this episode, host Alex Rawlings is joined by Paul Swaney, Managing Director of Swaney Group Capital. Formerly with Partners Group and a veteran of McKinsey and Amazon, Paul dives into the intricate world of value creation from an operator turned investor perspective. He shares his journey from the military to the forefront of private equity, discusses the innovative use of media for business growth, and details the strategic operational frameworks that have shaped his successful career. Join us as Paul provides a deep dive into his approach to enhancing portfolio company performance and his insights on the pivotal role of transformation governance in private equity.

Breakdown:

[00:00] Introduction to Paul Swaney, discussing his transition from Partners Group to founding Swaney Group Capital.
[00:10] How Paul uses media to enhance his Private Equity firm’s outcomes.
[00:22] Mention of a successful investment initiated from Twitter.
[00:25] Overview of Paul’s career and insights into his value creation strategies in Private Equity.
[00:55] Paul provides a detailed background of his diverse experiences from military service to corporate roles and Private Equity.
[01:24] Insights into applying lean system in a chemical plant and his recruitment by McKinsey.
[02:21] Challenges of starting his own Private Equity firm during peak deal flow times and growing his team.
[03:17] Common mistakes in Private Equity from deal processing to post-acquisition management.
[04:45] Lessons from Partners Group and the importance of transformation governance post-acquisition.
[06:04] Introduction to the Swaney Group Operating System, focusing on operational excellence.
[07:30] Discussion on maintaining flexibility and strategic planning in business operations.
[09:25] Paul’s effective use of social media for deal origination and brand building.
[10:24] Emphasis on the initial 100-day observational period post-acquisition to understand business intricacies.
[12:16] Typical patterns observed in founder-led businesses and strategic advice for potential acquisitions.
[14:43] Importance of strategic operational assessments in Private Equity investments.
[18:27] Paul discusses leveraging media for enhancing visibility and deal flow in Private Equity.
[19:25] Success stories from using Twitter for business development and investment opportunities.
[21:17] Closing thoughts on the integration of operational systems within Private Equity to enhance performance.

To connect with Paul, you can visit his LinkedIn profile at Paul Swaney 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.

Welcome to The Private Equity Podcast! In this episode, host Alex Rawlings talks with Chris Jamroz, CEO of Roadrunner and a former executive at Ascent Global Logistics. Chris shares his extensive experience in logistics and Private Equity, discussing the transition from investment banking to executive leadership. He highlights the common errors in Private Equity, such as focusing too heavily on past performance instead of potential growth, and offers advice on effective leadership and strategic investment. Chris also provides insights into navigating the cyclical nature of the logistics industry and emphasizes the importance of operational expertise in achieving successful exits. This episode offers valuable perspectives on leadership and investment strategies in Private Equity.

Breakdown:

[00:00] Introduction to the podcast and guest Chris Jamroz, highlighting his commitment and unique approach to running a business.
[00:16] Chris reflects on the critical factors contributing to his success over the past four years.
[00:26] Chris offers advice on being a successful Private Equity-backed CEO.
[00:46] Overview of Chris's career trajectory from investment banking to leadership roles in logistics, and the recent sale of Assent to HIG.
[01:16] Start of the in-depth conversation with Chris, exploring his strategies and experiences across various roles.
[01:46] Chris shares his approach as a "shareholder value unlocking specialist" and his operational playbook across the global supply chain.
[02:12] Discussion on common mistakes in Private Equity and portfolio companies, with historical context and advice for modern practices.
[03:58] Chris critiques the backward-looking focus of Private Equity firms and emphasizes the importance of future potential in investment decisions.
[06:21] Chris elaborates on the need for a paradigm shift in Private Equity from past performance to future potentialities.
[07:19] Inquiry into balancing the evaluation of past performance and future potential in Private Equity investments.
[10:15] The significance of having a strong operations team in achieving successful outcomes in Private Equity ventures.
[13:39] Mention of Grata, highlighting its role in enhancing proprietary deal flow with data-driven processes.
[14:07] Chris provides insights into the logistics industry, discussing its trends and cyclicality.
[18:27] Detailing the process and challenges faced during the recent sale of Assent Global Logistics to HIG.
[22:18] Chris shares the personal and professional challenges he faced from taking office to navigating company exits.
[26:47] Advice to Private Equity-backed chief executives on understanding and adapting to business realities.
[33:07] Chris discusses his personal influences and reading habits, emphasizing the value of learning from both successes and failures.
[39:13] Closing remarks and ways to contact Chris Jamroz for further insights and discussions.

To connect with Chris, you can visit his LinkedIn profile at Chris Jamroz 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.

Welcome to The Private Equity Podcast! In this episode, host Alex Rawlings chats with Dan Cremons, Founder of Accelera Partners, and discusses the integration of human capital into Private Equity value creation, emphasizing proactive talent management. He shares insights on optimizing teams, strategic hiring, and the significance of due diligence on leadership before acquisition. Cremons stresses learning from hiring mistakes, recognizing biases, and evolving human capital practices. He advocates for nuanced talent assessment, including development and coaching. Resources influencing his approach to value creation and human capital in private equity are also shared.

Breakdown:

[00:00] Introduction to the concept of surgically approaching value creation.
[00:18] Discussion on common hiring mistakes rooted in cognitive biases.
[00:30] Introduction of Dan Cremons, founder of Accelera Partners, and an overview of his background in Private Equity.
[00:59] The focus shifts to the importance of talent, hiring processes, due diligence, and the use of scorecards.
[01:29] Dan Cremons shares his journey from finance to Private Equity and founding Accelera Partners.
[02:56] Key mistake Private Equity firms make: a reactive approach to value creation.
[04:22] The evolving importance of proactive value creation in a competitive Private Equity space.
[05:21] Explanation of value creation and its fundamental meaning.
[07:16] The critical role of people in driving value creation.
[09:12] Introduction to people planning and its importance.
[13:20] The ongoing process of aligning talent with the company's evolving needs
[17:38] Discussion on the iterative effort of people planning throughout an investment.
[20:02] Personal reflections on learning from hiring mistakes.
[23:42] The evolution of human capital practices in Private Equity.
[27:02] Importance of professional training in interviewing and hiring.
[30:44] Due diligence on portfolio companies' executive teams pre-acquisition.
[34:03] The broader scope of organizational due diligence, including leadership, talent, culture, and capabilities.
[37:18] Dan Cremons shares his influences and recommended resources.

You can connect with Dan Cremons on LinkedIn by visiting his LinkedIn Page - Link to Dan Cremons' 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.