The Private Equity Podcast, by Raw Selection

Welcome to the Private Equity Podcast! In this episode titled host, Alex Rawlings, dives into the insights and strategies of a seasoned executive known for his leadership in multiple private equity-backed exits. Jeffrey Stark discusses his career trajectory, highlighting his transition from corporate America to becoming a pivotal figure in private equity spaces, steering companies through significant growth and successful exits.

Breakdown:

[00:00] Jeffrey Stark discusses his success with multiple private equity exits.

[00:11] He highlights his collaborative leadership approach, emphasizing guidance without micromanagement.

[00:40] Stark recounts his transition from corporate roles to significant positions in private equity.

[01:09] Focuses on challenges and strategies for leading companies to successful private equity exits.

[01:37] Insights into his proactive career approach in the private equity sector.

[02:33] The value of independent board members in providing unbiased support and expertise.

[03:46] Benefits of experienced board members for guidance in unfamiliar business areas.

[04:44] Operational focus on lean manufacturing and quality improvements.

[06:09] Discusses the transition from CEO to advisor roles, and the dynamics involved.

[07:33] Tactics for building trust with CEOs and preparing them for board meetings.

[09:01] How he has guided marketing strategies through CEOs, fostering a partnership approach.

[10:17] Stark shares experiences on cultural and operational challenges in mergers and acquisitions.

[12:49] The importance of transparent communication during transitions.

[14:05] Financial strategies and accountability in managing private equity-backed companies.

[15:20] Leadership development within teams to foster a culture of innovation. 

[18:14] Insights into global economic factors influencing private equity.

[19:05] Ethical considerations and corporate governance in the sector.

[20:21] Predictions on the evolving landscape of private equity and the role of technology.

[21:40] Advice for aspiring private equity professionals based on extensive experience.

[22:58] A case study of a successful exit, detailing strategic decisions involved.

[24:15] Discussions on work-life balance and managing stress in leadership roles.

[25:30] The role of mentoring and support systems in his career.

[26:45] Innovation in maintaining business competitiveness.

[28:00] His involvement in philanthropy and corporate social responsibility.

[29:15] Strategies for managing international business and cross-cultural teams.

[30:30] Thoughts on leadership succession planning.

[31:45] Personal and professional development influences.

[33:00] Future plans and continued impact on the industry.

[34:15] Invitation to connect for further insights and collaboration opportunities.

[35:30] Closing remarks.

You can connect with Jeffrey Stark 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 [email protected].

Welcome to The Private Equity Podcast by Raw Selection! In this episode, our host, Alex Rawlings, is joined by Jordan Burton, co-founder of Talgo. Together, they delve into the intricacies of talent interviewing and assessment within the private equity sector. Jordan brings a wealth of knowledge from his transition from a potential private equity investor to an expert in executive talent assessment. This discussion promises to enlighten those interested in optimizing their hiring processes and understanding the common pitfalls and best practices in recruiting top-tier executives. 

[00:00] Introduction to Jordan Burton, specializing in talent interviewing and assessment.

[00:16] Discussion on timely decision-making in human capital issues.

[00:44] Jordan shares his career transition to executive talent assessment.

[01:12] Insights into Jordan’s career evolution and the founding of Talgo.

[02:11] Importance of proper interviewing techniques in talent acquisition.

[03:07] Indicators of when to act on personnel changes.

[04:06] Consequences of being overly accommodating in personnel decisions.

[05:02] Deep dive into interviewing and hiring processes.

[06:01] Setting clear expectations and metrics for new executives.

[08:22] Characteristics of effective private equity executives.

[10:19] Traits that define a top executive in private equity.

[12:15] Importance of quantitative skills in executives.

[13:13] Techniques used in interviewing executives about their past experiences.

[15:05] Importance of detailed discussions about past roles and achievements.

[18:27] Systematic assessment in identifying leadership qualities.

[20:26] Nuances of executive onboarding and performance tracking.

[22:10] Organizational dynamics and internal politics in hiring.

[24:06] Future trends in executive hiring, including technology impacts.

[26:01] Importance of adaptability and continuous learning in talent acquisition.

[28:26] Final thoughts on the evolution of the talent acquisition field.

[30:52] Methodologies for developing leadership pipelines in portfolio companies.

[33:18] Common pitfalls in the executive search process and avoidance strategies.

[35:44] Role of diversity and inclusion in executive hiring.

[38:09] Jordan reflects on the mentors who shaped his career.

[40:33] Tips for building a career in talent management within private equity.

[42:57] Advice for maintaining a competitive edge through strategic talent management.

[44:31] Closing remarks by Alex, encouraging listener engagement and subscription.

You can connect with Jordan Burton 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 [email protected].

Welcome to the Private Equity Podcast! In this episode, we explore the nuances of building and scaling businesses within the private equity realm. Alex excited to welcome back Brendan Anderson, Managing Partner of ScaleCo Capital.

[00:00] Brendan emphasizes the importance of having the right people and vision for successful business ventures.

[00:11] Discussion on enhancing value through strategic customer engagement and supplier relations.

[00:21] Insight into the shift from gut feeling to data-driven decision-making in business strategies.

[00:50] How ScaleCo Capital scales smaller businesses often overlooked by larger firms.

[01:20] Focus on B2B service providers and manufacturers that require scalability.

[02:18] Initial challenges in acquiring and transforming small-cap companies.

[03:16] The significance of entrepreneurs stepping back from central operations to improve scalability and attractiveness.

[05:35] Exploration of the Entrepreneurial Operating System (EOS) for aligning management teams.

[06:56] Importance of team alignment in realizing business visions through EOS.

[08:16] Breakdown of ScaleCo's five pillars of business transformation.

[11:02] Integration of technology in customer and supplier engagement.

[12:53] Mention of ScaleCo's partnership with Grata, highlighting data-driven processes.

[15:17] Challenges and strategies in building effective sales teams.

[19:25] Impact of robust financial reporting on business strategy.

[20:49] Essential financial metrics and practices for new acquisitions.

[21:19] Brendan discusses the importance of accessing real-time financial data to drive strategic decisions.

[22:41] How deep insights into financial data can reveal new growth avenues within existing customer bases.

[24:06] Strategies for empowering leadership teams to take initiative and drive growth independently.

[25:24] Plans for integrating operational changes within 18 to 36 months to ensure sustainable growth.

[26:16] Challenges of effectively managing and growing businesses and how private equity provides crucial support.

[27:13] The necessity of continuous self-development and adaptation for businesses to evolve.

[28:11] The strategic focus on local investments to enhance relationship building and operational oversight.

[29:04] Geographic focus and its impact on investment success rates and operational effectiveness.

[30:01] The importance of local networks and relationships in managing and supporting businesses effectively.

[31:27] Brendan offers contact information for those interested in connecting or learning more about ScaleCo Capital.

[32:17] Discussion on building networks between talented individuals and promising businesses to foster growth and operational excellence in the private equity space.

[32:46] Closing remarks by Alex, thanking Brendan for his insights and inviting listeners to subscribe for more private equity discussions

You can connect with Brendan Anderson 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 [email protected].

Welcome to the Private Equity Podcast! In this episode, Alex Rawlings welcomes back Brad Nathan, a seasoned private equity firm founder, to dive into the intricacies of starting and managing a PE firm. Brad shares first-hand experiences, detailing the triumphs and tribulations he's encountered and offering a comprehensive guide for navigating the competitive private equity landscape.

Episode Timestamps:

[00:00] Introduction of today’s topic and guest, Brad Nathan.

[01:15] Exploration of Brad’s early career and the motivations behind starting his private equity firm.

[03:30] Challenges faced during the initial setup of the firm, including capital raising and team assembly.

[06:45] Strategies Brad implemented to overcome initial failures and secure the firm’s first successful deals.

[10:20] Key decisions and strategies that fueled the firm’s growth and expansion.

[13:50] Insights into the recruitment, culture building, and leadership styles vital for a successful PE firm.

[18:30] Stories of the highest highs and lowest lows in managing the firm.

[22:10] The most valuable lessons learned throughout Brad’s career and advice to aspiring private equity firm founders.

[25:40] Predictions on emerging trends and the evolution of the private equity industry.

[29:00] Listener Q&A session with Brad on specific challenges and advice on various scenarios in private equity.

[33:15] Summary of key insights shared by Brad and closing remarks.

 You can connect with Brad Nathan 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 [email protected].

Welcome to the Private Equity Podcast! In this episode, we dive into the intricate dynamics of managing relationships between CEOs and private equity firms with our guest, Matt Sharrers, founder of ETJ Advisory. Matt shares his extensive experience and insights on how executives can effectively navigate the transition into private equity-backed roles, focusing on the critical aspects of cultural change, value creation, and team management.

[00:00] Welcome back to the Private Equity Podcast by Raw Selection. 

[00:59] Matt Sharrers discusses his background and current role at ETJ Advisory, including his past experiences with SBI and his diverse career path.

[01:28] Common errors by private equity firms and portfolio companies. Matt highlights the importance of understanding cultural impacts during CEO succession and aligning with private equity goals.

[01:57] Matt's book “The Second CEO” and its focus on helping new CEOs navigate the challenges of taking over from a founder and creating value.

[02:25] Advice on managing cultural shifts from a founder-led organization to a private equity-backed company.

[03:20] Strategies for defining and implementing new company culture effectively, including the role of top executives and culture champions.

[05:10] The importance of defining and communicating company culture and values. How to make culture an active mechanism in hiring, performance reviews, and onboarding.

[07:01] The role of the CEO in driving cultural change and the mistakes to avoid, such as deferring too much to private equity firms.

[09:56] Involving different levels of the organization in shaping culture and creating buy-in across the board.

[11:08] Challenges faced by first-time private equity-backed executives and the importance of understanding private equity models and support.

[13:08] Advice on balancing the information advantage of running the business with the guidance and input from private equity partners.

[15:34] Insights on how to approach value creation, with a focus on sustainable growth and the importance of a strong team.

[18:00] The necessity of adapting team composition as the company scales and evolves, including the need for new talent at different milestones.

[19:26] Advice on evaluating and developing talent within the organization to align with growth and value creation goals.

[23:20] When to make decisions about team changes and the importance of having the right team in place by mid-year two.

[24:20] Matt shares his reading and listening preferences, including books by Arthur Brooks, gratitude journaling, meditation, and sports interests.

[25:46] Alex thanks Matt for the insightful discussion on transitioning from founder-led to private equity-backed leadership.

 You can connect with Matt Sharrers 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 [email protected].

Welcome to The Private Equity Podcast! In this episode, we’re diving deep into the world of investments with a focus on sub $5M EBITDA companies. Our guest is Mason Myers, Founder and Managing Partner of Greybull Stewardship. Mason’s expertise lies in navigating and scaling smaller, often overlooked businesses, and he’s here to share valuable insights on how to unlock potential and drive growth in this niche market.

[00:00] Alex Rawlings introduces the podcast and today's focus on investing in sub $5M EBITDA companies with guest Mason Myers.

[00:13] Discussion on Grable Stewardship’s Gravel Strategy, targeting pre-middle market businesses with less than $5M in profit.

[00:24] Alex welcomes Mason Myers, Founder and Managing Partner of Greybull Stewardship, to the podcast.

[00:48] Alex invites listeners to connect on LinkedIn before diving into the conversation with Mason.

[01:13] Mason shares his background from journalism to founding Greybull Stewardship, his experience with startups, acquisitions, and his shift to private equity.

[02:34] Mason highlights common mistakes by private equity firms and portfolio companies, stressing the need to listen to founders and choose intermediaries carefully.

[04:27] Mason explains Greybull Stewardship’s focus on pre-middle market businesses, the firm’s mission, and its commitment to this underserved space.

[06:44] Mason addresses unique risks in sub $5M EBITDA investments and how Greybull manages these risks, focusing on sustainable business models.

[09:08] Mason discusses strategies for scaling businesses post-investment, improving operational fundamentals, and expanding management teams.

[10:12] Mason details Greybull's diligence process and collaboration with management teams to enhance business value.

[12:29] Mason emphasizes the role of operating partners in creating value over financial engineering, noting Greybull's focus on operating experts.

[16:12] Mason advises businesses on increasing value before engaging with private equity, covering accounting practices, revenue predictability, and growth initiatives.

[19:29] Mason shares strategies for maintaining deal flow in a slow market and how Greybull uses referrals and intermediaries to find opportunities.

[20:27] Mason offers tips on selecting the right intermediary and invites a 20-minute brainstorming session to assist business owners.

[21:26] Mason discusses his influences, including Warren Buffett and Charlie Munger, and his interest in biographies and historical figures.

[24:17] Alex concludes the podcast.

You can connect with Mason Myers on LinkedIn by visiting his profile here or you can email Mason at [email protected] 

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 [email protected].

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 [email protected].

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 [email protected].

 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 [email protected].

 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: [email protected]; 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 [email protected].