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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.

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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.

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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.