The Private Equity Podcast, by Raw Selection

In a compelling episode of The Private Equity Podcast, host Alex Rawlings engages in a insightful conversation with industry veteran Brian Cassady. The focus of this episode is on Brian's exceptional achievement of organically increasing revenue by $50 million and creating an impressive $500 million in EBITDA.

Throughout the episode, Brian shares the strategic insights and transformative decisions that fueled this substantial growth. From innovative operational tactics to identifying and capitalizing on market trends, listeners gain a comprehensive understanding of the nuanced approaches that drove this remarkable success story within the Private Equity landscape.

Join host Alex Rawlings as he navigates through Brian Cassady's experiences, offering listeners a firsthand account of the challenges, triumphs, and strategic maneuvers that led to such substantial financial gains. This episode serves as a valuable resource for professionals and enthusiasts alike, providing actionable insights and inspiration for those looking to drive organic growth within the Private Equity sector.

Connect with Brian Cassady on LinkedIn to stay updated on his industry perspectives: Brian Cassady LinkedIn. For a deep dive into the world of Private Equity and a masterclass on driving organic revenue growth, tune in to this illuminating episode on The Private Equity Podcast.

Introducing Paul Barnhurst
Paul Barnhurst (a.k.a. "The FP&A Guy") founded  FP&A Guy, a company that provides FP&A coaching and consulting services. Paul has 12+ years of professional experience across several industries, with a strong background in financial planning, financial modelling, report building, and business partnering. Paul is also a content creator, LinkedIn influencer, and host of "FP&A Today," one of the most popular FP&A podcasts, and is known for his deep understanding of the FP&A software planning space.

What You Will Learn
Strategies for enhancing the FP&A  processes
Integrating Technology in PE Firms
What FP&A teams need to improve PE processes

Breakdown
[00:32] Getting to Know Paul Barnhurst
[01:12] One Mistake by PE Firms and action to correct it
[02:29] Three things to improve PE firm’s FP&A  process
[04:32] How PE firms can improve decision-making around PF&A
[07:23] How PE Companies choose and integrate Technology
[10:26] Disregarded areas in FP&A that PE need to pay more attention to
[13:20] What inspired Paul to set up a podcast and a community
[16:17] Paul's Go-To Self-Improvement Resources
[17:39] How to become a world champion at Excel
[19:49] How to connect with Paul

Improving FP&A in Private Equity
What should PE companies do to improve their FP&A process? According to Paul, FP&A can be broken down into three areas. First, it’s people. The first thing you need to do is to make sure you have the right people, and you are upscaling that. With everything that is coming up with AI, you need people who can meet today’s demands, be commercial, and help drive the business forward. The second thing that the FP&A team needs to think about is the processes. They have to constantly streamline and automate the processes because data and demand are constantly increasing. The third thing that Paul shares is bringing the right technology. Technology serves as an enabler, and it can help PE firms reach the next level. However, according to Paul, if you start with technology, you will almost end up with a failed transformation. So think about the other processes first and then use technology to enable and free up your team to focus on being good business partners.

How to Contact Paul
Paul on LinkedIn
Thefpandaguy.com

Thank you for tuning in!
To get the latest 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].

Introducing Ted Clarke

Ted Clarke is an operator turned into a private equity investor and a shipping clerk turned into a CEO. Starting as a shipping clerk, Ted rose to become President & CEO of Products Research & Chemical Corporation (PRC), a global leader in aircraft and construction sealants and coatings. Today, Ted is a partner at Iron Path Capital, a private equity firm that focuses on specialty industrial investments, partnering with business managers on acquisitions and buying and building growth strategies using private equity capital.

What You Will Learn
Strategic pitching and selling to Private Equity
Acquisition, recapitalization, and integration in PE
Public companies Vs. Private Equity growth strategy

Breakdown
[00:59] Getting to Know Ted Clarke
[02:35] Ted’s experience with acquisition and sales to PE firms
[18:02] How to streamline the processes of integration of businesses
[26:09] Ted's lessons from Public Companies and PE Firms
[34:08] How Ted went from shipping clerk to CEO and writing two books 
[41:23] Ted's Go-To Self-Improvement Resources
[43:44] How to get in touch with Ted
[44:15] Ending the show

The Process of Integration
How can the CEOs and Senior leaders of portfolio companies and PE enhance the integration process? According to Ted, they have to be intentional not just with the integration process but also with what they are trying to build and the culture they are trying to develop to achieve their goal. Ted's experience in integrating acquisitions is based on the metrics. That is understanding the market you want to be in, the technology, and the characteristics you want to have and making the message simple so that it can permeate down the organization.

Ted also shares that as you evaluate the acquisition, you need to put the time and effort into understanding the history of the business, determining the cost and gross synergies, and how you will integrate the acquired business into your culture. Having an open culture with clear and simple approaches to what you are trying to accomplish makes the integration process easy and transparent. It makes it clear very quickly whether or not the business you want to acquire will buy into your culture, and you can make changes early on.

How to Contact Ted
Ted on LinkedIn
Tedclarkauthor.com

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].

Introducing Jason Hendren

Jason Hendren is a CEO coach, speaker, and exit planning advisor who guides entrepreneurs in reaching large-scale objectives and planning for an eventual exit. Jason knows firsthand what it's like to grow a profitable business and navigate the selling process. He sold most of his business to private equity and stayed on and ran it as the CEO for a while. After selling it a second time, he bought some complementary businesses and eventually started another business, Hendren Business Advisors, where he helps business owners grow and exit their businesses.

What You Will Learn

• PE professionals' collaboration with management teams
• Planning for a high multiple and profitable exit 
• Founding, growing, and selling a business to private equity 

Breakdown

[01:16] Getting to Know Jason Hendren
[03:00] Enhancing PE professional's relationship with management teams.
[05:50] Improving CFO’s and C-suite exit strategy
[10:22] Value creation and packaging a profitable business
[12:00] Things Jason wishes he knew before he sold PE
[15:32] Jason's Go-To Self-Improvement Resources
[17:26] How to reach out and connect with Jason
[17:44] Ending the show

PE CFO and C-suite Exit Strategy

How can CFOs and C-Suite improve their exit strategy? Jason shares that hiring the right investment banker is the first step. The worst time spent by an entrepreneur is in training their investment banker about their business and industry. The investment banker should walk in with that investment knowledge. When Jason is working with entrepreneurs, he looks for investment bankers who have sold businesses that look like theirs and are similar in size as much as possible. According to Jason, when you bring an investment banker in, they should be able to tell you about the buyers in the market and give you information you don’t have access to that you can tweak to get a higher multiple.

How to Contact Jason
Jason on LinkedIn
Hendrenba.com

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].

Introducing Bill Canady
Bill Canady is the CEO of OTC Industrial Technology and Arrowhead Engineered Products, both backed by private equity. Bill has over thirty years of experience as a global business executive in various industries and markets focused on industrial and consumer products and services. As a leader, Bill aligns with key stakeholders to create a clear and compelling vision to rally an organization to drive growth, control costs, and increase profitability. From his experience, Bill has built the Profitable Growth Operating System (PGOS) to help owners and operators worldwide grow their companies profitably.

What You Will Learn

• Key Strategies to make data work for PE firms
• How to be customer-centric and achieve profitable growth
• Taking command and growing of your company

Breakdown
[00:17] Getting to Know Bill Canady
[02:59] Common Mistakes by PE Firms and actions to correct them
[04:15] How Bill is managing two companies as the CEO
[07:07] The processes that have allowed Bill to run successful PE firms
[17:57] How to cultivate a customer-centric mindset in PE
[24:05] The most profitable sales model for PE firms
[26:30] How to leverage data to achieve PE goals
[28:30] Bill’s motivation and model for writing multiple books
[32:15] Bill’s books and his PGOS model for profitable growth
[35:40] Bill’s Go-To Self-Improvement Resources
[36:53] How to reach out and connect with Bill

How Data Works in Private Equity
How does data work in achieving PE goals? According to Bill, the goal of PE firms is to make money and get to the exit as fast as possible.  The way this works is by looking at the maths and identifying where a PE firm is making money. As a company, Bill shares that when they get the data, they start figuring out where to go, and as the CEO, his work is to communicate their mission and goals. The goals are irrefutable, and everyone around the table is committed to them in PE. They know exactly what they must do to get a return that is acceptable to everyone.

This means that to make data work, you need three things. First, a CEO who says, “We’re going to follow the data and reorganize ourselves.” Second, the operators running the company have to follow the process. Third, you need a program manager who understands the 80/20, the toolset, and the strategy management process and can act as the trainer or coach within the business. According to Bill, without these three: someone to tell you how to get there, someone to do the work, and someone that says work must be done, the outcome is pretty underwhelming.

How to Contact  Bill

Paul Bill on LinkedIn
Billcanady.com/
​​
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].

Introducing Brian Scanlon

Brian Scanlon is the managing partner at Deal Gen Partners, a deal-generation service sourcing deals for Private Equity Funds and Strategic Acquirers. Currently, DealGen Partners manages $2.7B in buy-side mandate and has generated over $900M in deal value. DealGen's combination of outreach strategy and network of partners brings private equity and strategic acquirers the perfect targets for their deal criteria.

What You Will Learn

PE deal origination strategies for top PE funds

PE firm acquisition and mindset playbook

Mistakes PE founders make when they sell  

Breakdown

[00:56] Getting to Know Brian Scanlon

[01:41] One Mistake PE Firms make and actions to correct it 

[04:39] Growing a PE equity fund 

[06:32] What PE should start doing differently in deal origination

[09:09] The mindsets of founders of PE firms that want to be acquired

[12:35] Questions PE founders don’t ask but want to know 

[16:26] Overcoming negative bias in PE and opening up for potential sales 

[17:58] Things Brian Likes and Dislikes about private equity

[19:44] Brian’s Go-To Self-Improvement Resources

[23:52] Parting Thoughts 

The Mindsets of PE Founders 

What is the mindset of PE founders who want to sell their company? It depends on the industry and how vast the owner is in what the transaction will look like. When we move towards manufacturing, logistics and blue-collar types of businesses, typically, these are business owners who have been building firms for 20-30 years and are looking to exist. They have a different notion of what a transaction would look like than a start-up tech founder who is building something with the intention of selling. According to Brian, they usually see owners move through a progression from thinking about selling to reaching out to friends to see what they sold for and how the transaction looks like to, which is not applicable to their business as every business is different, and they only get 30% of the right information. Some hire valuation funds to see what they think they are worth, and that’s great. They are going to be at the ballpark of the standard deviation of what they are worth, but it’s not the feedback from the people who are going to write them a cheque to acquire the company, which is the most useful feedback. According to Brian, the PE founders' mindset is usually a little hesitant, and the biggest challenge is their expectations vs. true valuation from funds. You can think you’re worth 10 times your bottom-line, but if they are willing to pay you 3, that’s what you are worth.

How to Contact Brian

Brian on LinkedIn

dealgenpartners.com

​​

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].

Introducing Charlie Chipchase

Charlie Chipchase is the Managing Director and Head of Europe at Petra Funds Group, a leading fund administration provider to global private equity, venture capital, and private debt funds. Charlie is a seasoned private funds attorney and ESG expert with over 20 years of experience working at a $40+ billion private equity firms and international law firms.

What You Will Learn:

The growing case for ESG investing in private equity

Strong ESG practices for the benefit funds and their investors

The common ways ESG creates value in private equity

Breakdown:

[00:00] Introduction

[02:40] The Mistakes PE Firms Make with Their Portfolio Companies

[04:50] The Role of ESG in Private Equity Investing

[07:46] How to Get the Most Out of ESG Data

[10:12] Ways to Improve Your ESG Strategy

[15:30] Why All PE Firms Should Consider ESG Investing

[21:06] What Charlie Likes and Dislikes About Private Equity

[23:16] The Humility Aspect of PE Investing 

[25:32] What Charlie Watches, Reads, and Listens To 

[28:50] Parting Thoughts

The Growing Case For ESG in Private Equity

Environmental, Social, and Governance (ESG) factors are rapidly gaining traction in private equity, and for good reason. As society becomes increasingly aware of its environmental and social responsibilities, investors seek ways to align their capital with positive change. And what better way to do that than to go the ESG route? According to Charlie, ESG integration in private equity is not just a moral choice; it's a smart investment strategy.

PE firms that recognize the long-term benefits of ESG attract the best talent, raise capital faster, and sell for profitable margins. Companies with strong ESG performance also tend to outperform their peers in the long run. We live in a world where sustainability is paramount. ESG integration in private equity is not just a trend but a win-win strategy, benefiting both investors and society.

Links and Resources:

Charlie's LinkedIn

Petra Funds Group

Charlie's Email - [email protected]

The Watchman's Rattle by Rebecca D. Costa

The Spy and the Traitor: The Greatest Espionage Story of the Cold War by Ben Macintyre

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].

Introducing Brendan Anderson

Brendan Anderson is the Founder and Managing Partner of ScaleCo Capital, a lower middle market private equity firm focusing on control-oriented leveraged buyouts and growth equity investments in fast-growing companies. Scalable partners with companies to bring operational expertise and strategic resources to scale a business's growth potential and build long-term value.

What You Will Learn:

Why Speed and Change is the New Superpower in Private Equity

How to Grow and Scale a Profitable Portfolio Company

The Benefits of Investing in Small, High Gross Margin Companies

Breakdown:

[00:00] Introduction

[02:15] The Mistakes PE Firms Make with Their Portfolio Companies

[04:20] The Sub 5 Million EBITDA Bussines Model

[06:46] How Brendan and His Team Drive Value Creation

[09:56] The Biggest Benefit of Investing in Small Profitable Companies

[11:14] The Most Effective Way to Run a Portfolio Company

[12:37] Processes and Systems For Effective Fund Management 

[14:36] What Brendan Likes and Dislikes About Private Equity

[16:20] What Brendan Watches, Reads, and Listens To 

[17:24] Parting Thoughts

Speed and Change: The New Super Power in Private Equity

Speed and change is the new superpower in private equity. According to Brendan, we live in an age where you must execute everything with speed. When you buy a portfolio company, go in as fast as possible, make changes, and start driving value immediately. Most portfolio companies have been operating the same way for decades. And although they might be profitable, their way of doing things is not necessarily the best way to run a business. 

Traditionally, many PE firms favored a hands-off approach to managing the operations of portfolio companies. They leave the management teams to run operations and only focus on driving strategic direction. However, times have changed, and nowadays, PE firms hire operational specialists who work collaboratively with management teams to provide additional bandwidth and support. For Brendan, this approach is what accelerates speed and change in the more profitable PE firms. 

Links and Resources:

Brendan on LinkedIn

Scaleco.com

Brendan’s Email: [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].

Morty Singer is the Co-Managing Partner at Traub Capital Partners, a private equity firm investing exclusively in the consumer industry. Throughout his career, Morty has been an innovative, sought-after executive in the retail and consumer branches of the fashion industry. He has advised global companies in retail and distribution strategies, operations, and mergers and acquisitions.

[05:45] Traub Capital’s Main Differentiator

[22:51] Traub Capital’s Focus on the Consumer Bussiness

[28:25] Why Traub Capital Launched Their Own Podcast

In the fast-paced world of private equity, where financial deals and high-stakes investments rule the day, one often overlooked yet profoundly influential factor is culture. According to Morty, culture is what makes or breaks successful PE investments. For him, culture is not just a buzzword; it’s the very essence of who they are as a company. The same is true for the portfolio companies you invest in. Investing in companies with great cultures can be far more profitable than investing in companies with bad cultures. By valuing culture and nurturing it within your firm, you can unlock many advantages that will propel your private equity goals to new heights. Morty and Traub Capital follow an approach built on P-E=T, where Positivity minus Ego equals Trust.

Introducing Adam Coffey

Adam Coffey is a CEO, best-selling author, Forbes Business Council member, and an acclaimed international speaker. Over the past 21 years, he has had the honour of serving as President and CEO of three national private equity-backed service companies. Two of which achieved enterprise values of $1B. 

What You Will Learn:

How to build a billion-dollar business

What it takes to scale a business successfully

The common mistakes entrepreneurs make on the road to a billion

Breakdown:

[00:00] Introduction

[02:42] What It Takes to Build a Billion-Dollar Business

[05:10] How to Build the Perfect $1000,000 Business

[08:35] The 30-20-10 Rule For Entrepreneurial Success

[12:26] Why Capital is Not the Biggest Hurdle to Entrepreneurial Success

[14:39] Making Strategic Pivots in Your Business

[16:47] Two Natural Exit Points For Private Equity

[22:39] The Top Challenges of Scaling a Business

[30:10] How to Hire the Right Talent Every Time

[33:25] How to Integrate New Hires Into the Company Culture 

[37:00] The Feeling of Achieving a Billion-Dollar Exit

[39:20] Parting Thoughts 

The 3 Most Important Aspects of Scaling a Business

Every entrepreneur dreams of one day successfully scaling their business. Unfortunately, scaling is hard. As your business grows in size and scope, it also grows in complexity. The good news is that the scaling challenges your company is facing are not unique to your business. Adam Coffey believes you only need to master these three areas to successfully scale your business to a billion-dollar empire.

1. People

We all know that people are the most important asset in an organization. When you start scaling your business, you will need people - and, most importantly, the right people. The mistake most business leaders make is that they hire just because a position is open. To be successful, don’t hire for the company you have today; hire for the skill you’ll need for the company you’ll have in 5 years.

2. Understand What Good Looks Like

You can only scale a business if you understand what good looks like. Before you buy anything, know what good, average, and best looks like. Otherwise, you’ll fall into the shiny objects syndrome, where everything looks good, and you overlook every flaw.

3. Proper Integration

You have a system, you’ve hired the right people, and you have customers who love your product. Now, the next thing you should do is integrate everything into a fully functioning system. Proper integration connects people, cultures, and systems so entrepreneurs have everything they need to scale their businesses.

Links and Resources:

Adam’s LinkedIn

Adam’s website