The Most Unique Deal Origination Strategy with Matt Bodnar

Welcome to The Private Equity Podcast by Raw Selection, hosted by Alex Rawlings. Today’s guest is Jon Van Tuin, Managing Director at P4G Capital. With decades of experience in Private Equity, Jon shares his insights on deal origination, building relationships with deal sources, and standing out in an increasingly competitive market. Learn actionable strategies to improve deal flow, develop meaningful relationships, and elevate your firm's positioning as the preferred acquirer. Breakdown:[00:00] The current private equity landscape with over 3,500 funds and $1 trillion in undeployed assets.[00:28] Introduction to Jon Van Tuin and his role at P4G Capital.[00:57] Jon’s background: 30+ years in private equity starting in the late 1980s.[01:27] A common mistake private equity firms make: Addressing portfolio issues too slowly.[02:27] The importance of acting quickly and getting the right people into key roles.[03:25] Jon’s career reflections and the growth of private equity since the 1980s.[05:23] Jon’s approach to deal origination: Focusing on relationships, not transactions.[06:21] Why 80% of P4G’s deals come from a select group of intermediaries.[07:43] Adding value to intermediaries: Sharing insights instead of just asking for deal flow.[08:42] The value of a dedicated deal origination professional in private equity.[09:40] How origination teams keep pipelines full and differentiate firms in a crowded market.[10:39] Positioning P4G as a preferred acquirer: Building relationships and delivering on process.[11:07] Jon’s multi-pronged approach: Over 700 face-to-face meetings and consistent outreach.[12:57] Staying top of mind: Leveraging tools like DealCloud for digital outreach.[13:25] The demands of travel: 43 weeks on the road to drive deal origination success.[14:22] Jon’s influences: Focusing on leadership, culture, and aligning the right teams for success.[16:16] Recommended reading: Insights from McKinsey, Bain, Stephen Covey, and Jim Collins.[17:14] How to contact Jon Van Tuin: Email: [email protected] be added to the book waitlist, you can email [email protected] you for tuning in! You can connect with Jon Van Tuin on LinkedIn here. 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 back to The Private Equity Podcast by Raw Selection hosted by Alex Rawlings! Today’s guest is Joe Gerber, a proven Operating Partner and transformation expert. In this episode, we explore Driving EBITDA Growth Through Data Metrics. Joe shares actionable strategies on leveraging real-time data, optimizing decision-making, and taking reporting from good to great. Discover how Private Equity firms and portfolio executives can use data to identify inefficiencies, drive operational excellence, and boost EBITDA growth.Breakdown:[00:00] What does good reporting look like? Starting with excellence and working backward.[00:12] Building effective teams without geographical limits.[00:41] Joe’s background: Middle-market investment banking, transforming businesses, and PE advisory work.[01:39] The biggest reporting mistakes PE firms make and how to correct them.[02:36] Real-time reporting example: Cutting headcount by 30% and growing EBITDA.[04:32] Metrics to track daily: Real-time insights to forecast performance.[06:50] How real-time data leads to operational pivots and improved decision-making.[09:15] Optimizing working capital to fuel growth and cash flow.[11:33] Taking reporting from good to great: Key improvements PE firms need.[13:01] Assessing management teams early with data-driven insights.[15:46] Where to start: Key data points in multi-location businesses.[18:41] Coaching CEOs: Common gaps and how to address them.[20:19] Joe’s influences: The Art of Gathering, personal growth, and daily reads.[22:43] Best way to connect with Joe: LinkedIn.To be added to the book waitlist, you can email [email protected] you for tuning in! You can connect with Joe Gerber on LinkedIn here. 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 back to The Private Equity Podcast by Raw Selection, In this episode, host Alex Rawlings sits down with Sam Bendix, Partner of Investor Relations at Chicago Pacific Founders. In this episode, we dive deep into what it takes for Private Equity firms to truly stand out in an increasingly competitive market.Sam shares actionable insights on how differentiation can impact talent attraction, capital raising, and deal origination. Sam discusses the importance of building a strong brand, fostering innovation, and effectively communicating your firm’s story.[00:00] Brand is a product of the people building it and consistent results.[00:13] Importance of differentiation in attracting talent, capital, and investments.[00:42] Introduction to Sam Bendix, Partner of Investor Relations at Chicago Pacific Founders, and the episode's focus on differentiation in private equity.[01:11] Sam’s career journey from investment banking to real estate investments and IR roles across various firms.[04:57] Overview of Chicago Pacific Founders and its healthcare-focused investment strategy.[06:24] The mistake of inconsistent messaging and the importance of cohesive communication.[08:07] Differentiation strategies: strategic positioning, operational strengths, and client-centric innovation.[10:55] Proprietary processes, attracting top talent, and creating barriers to imitation.[12:18] Case study: Proving differentiation through performance and results.[13:12] The role of brand recognition and consistent execution in building a firm’s reputation.[14:39] Educating the market as a key element of branding and thought leadership.[16:38] Attracting talent: building a network and aligning with career aspirations.[19:01] Revisiting assumptions and fostering innovation for market differentiation.[19:59] The role of talent in building and maintaining differentiation.[22:26] Alex shares insights on private equity firms’ branding and talent strategies.[28:06] Importance of putting yourself out there and documenting over creating for awareness.[33:24] Building trust through transparency and thought leadership.[36:17] Efficiently qualifying leads and fostering trust through shared insights.[38:12] Challenges in communication: sticking to agendas, avoiding jargon, and active listening.[42:03] Tools for effective communication: checklists, frameworks, and structured conversations.[43:27] Recommended communication frameworks: What-So What-Now What and others.[45:23] Sam’s book and podcast recommendations for effective communication and decision-making.[46:52] Importance of knowing when to quit and insights from behavioral science.[47:21] Sam invites listeners to connect via email for further discussions.[47:44] Recap of the conversation's key themes and the importance of continuous improvement in differentiation strategies. You can connect with Sam on LinkedIn by visiting his profile here. To be added to the book waitlist, you can email [email protected] 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 back to The Private Equity Podcast by Raw Selection! In this episode, Alex Rawlings welcomes back Adam Coffey, CEO and author of the Private Equity Playbook. Adam shares his strategies for scaling businesses, reducing employee turnover, and building strong company cultures. He emphasizes hiring for future growth, addressing employee concerns, and using hybrid work models to retain top talent. Adam also discusses his updated edition of the Private Equity Playbook, offering new post-COVID business insights.Breakdown: [00:00] Most Private Equity firms report a success rate of only 20-30% with CXO hires, with 30% being quite rare.[00:46] Adam, gives us a brief insight into your background.[01:15] Adam reflects on his time at GE, leading companies through private equity backing, and now helping entrepreneurs grow their businesses.[04:06] Adam talks about the importance of culture in scaling businesses and the challenge of reducing employee turnover from 41%. He highlights how different regions and employee needs required tailored approaches to address issues and improve retention.[07:30] He explains how culture, leadership, and people are fundamental when scaling businesses. Having a strong culture ensures employees stay and grow, making talent the key to driving success.[09:25] Adam dives into how he tackled turnover in different regions, using examples from the Pacific Northwest and Texas, where pay scale and benefits played a role in employee satisfaction.[12:15] By investing in people early on and addressing their needs, Adam quickly reduced turnover to below industry standards. He explains how transparency and early investments helped build trust and boost employee engagement.[15:01] Adam discusses how private equity firms struggle with transitioning founder-led companies to PE-backed environments, emphasizing the importance of communicating career opportunities and company growth potential.[17:49] When acquiring companies, Adam emphasizes how better benefits and career development opportunities within a larger organization can turn acquisition anxiety into employee buy-in.[19:36] Adam addresses the shift in work culture, particularly after COVID-19, and the challenges and benefits of remote work in recruiting talent nationally.[23:16] He highlights how businesses can still maintain flexibility for employees while ensuring productivity and accountability. Companies that find the right balance will be better positioned for growth.[27:24] Adam shares his approach to hiring top executive talent, with a focus on aligning work to be done with the candidate's experience.[33:01] He stresses the importance of hiring leaders who can guide the company through growth and challenges, even if it means making difficult decisions like upgrading talent.[38:10] Adam talks about the importance of culture fit when hiring and how toxic employees can disrupt growth. [41:59] Adam reveals his process for assessing talent within six months.[44:15] Adam announces his updated edition of the Private Equity Playbook, highlighting new insights post-COVID and why it's been a top read for private equity professionals for years.To be added to the book waitlist, you can email [email protected] you for tuning in!You can connect with Adam Coffey on LinkedIn here.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 back to The Private Equity Podcast by Raw Selection, In this episode, host Alex Rawlings sits down with Matt Bodnar, founder and managing partner of Eidolon Capital. They discuss Eidolon’s unique deal origination strategies, including innovative approaches like direct mail, and how their flexibility in deal-making helps them close deals where more rigid firms miss out. Matt also shares valuable insights on long-term investing, inspired by Berkshire Hathaway, and offers top recommendations on business, psychology, and deal-making books. Breakdown: [00:00] Matt explains how their market position was inspired by Berkshire Hathaway, leading them to find unique opportunities by being flexible where others are rigid.[00:12] PE firms often miss out on deals due to their rigid criteria; Eidolon benefits from a more flexible approach.[00:26] Matt mentions Extreme Ownership as one of his favorite books and shares it with his management teams.[00:53] Introduction to Matt Bodnar, founder of Eidolon Capital. The conversation covers deal origination, using direct mail, and valuable book recommendations.[01:21] Goldman Sachs, starting Eidolon Capital, and focusing on lower middle market companies with a long-term approach.[02:17] Matt identifies rigid deal structures as a common mistake PE firms make, missing opportunities to tailor deals based on sellers' needs.[03:09] Flexibility in deal-making, like structuring equity rolls and earn-outs, gives Eidolon an advantage over more rigid buyers.[04:34] Matt shares Eidolon’s broad deal origination strategies, including cold email, LinkedIn, direct mail, and networking.[07:46] The importance of market positioning and personal outreach from principals to increase deal engagement.[09:39] Why principals contacting sellers directly makes a significant difference in building rapport and closing deals.[10:35] Direct mail as an effective, less crowded method for sourcing deals, especially in old-economy sectors like manufacturing and distribution.[13:23] Eidolon’s brand focuses on long-term investing and taking care of all stakeholders, inspired by Berkshire Hathaway.[15:16] Eidolon’s flexibility with capital and bespoke deal structures allows them to close deals even in suboptimal conditions where other firms might walk away.[17:09] How taking a long-term view, as opposed to the typical 3-5 year private equity time horizon, results in better decisions and stronger outcomes for companies.[19:25] Matt discusses the importance of staying informed on macroeconomic trends, the Fed, and market cycles to understand the broader impact on investment decisions.[20:48] Book recommendation: How to Make a Few Billion Dollars by Brad Jacobs, a prolific entrepreneur who founded or acquired several billion-dollar companies.[22:41] Matt shares how deep reading into human psychology and decision-making (Charlie Munger’s Poor Charlie’s Almanac and Robert Cialdini’s Influence) shapes his approach to deals and negotiation.You can connect with Matt on LinkedIn by visiting his profile here.  To be added to the book waitlist, you can email [email protected] 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 back to The Private Equity Podcast, by Raw Selection! In this episode, Alex is joined by Robb Powell, an experienced Operating Partner and former CEO who has successfully built and sold two businesses. Robb discusses the deployment of technology and AI in private equity-backed companies, shares insights on driving cultural transformation, and explores the importance of enabling people for business success. Breakdown:[00:00] Robb discusses how private equity firms and portfolio companies can start using AI.[00:12] Introduction to Robb Powell, an operating partner and former founder and CEO. The episode covers tech, AI, and culture.[00:41] Robb shares his background and experience with acquisitions, board work, and leveraging technology for business growth.[01:11] The importance of using technology to drive sales and agility in companies.[02:06] Common mistake in private equity: focusing too much on finances post-acquisition, neglecting team assessments and aligning people with goals.[03:33] Robb’s method for assessing management teams, using written responses to understand their thought process.[05:00] Building a culture of success focused on enabling others and creating referral-worthy work.[07:01] The importance of having a clear narrative about the value you're providing in any role.[08:29] Robb’s thoughts on aligning people and driving change in organizations, including when it’s time to let people go.[11:19] Overview of Robb’s technology and digital transformation work with various companies, particularly in sales and service industries.[13:41] Robb shares how AI is being used to transform roles, including automating coding tasks in a tech company.[14:34] Exploring where private equity firms and portfolio companies should start with AI and ChatGPT.[15:59] Robb’s advice on using AI tools to help businesses innovate and work more efficiently.[17:54] The future of AI: replacing tasks, not jobs, and making people smarter through automation.[20:19] The potential of using existing tools to implement AI in businesses without needing large consulting firms.[21:46] Robb’s current AI project with a high-end wine room business and the value AI adds to search functionality on websites.[22:45] Robb’s influences and recommendations for books, podcasts, and thought leaders, including Acquired and Peter Diamandis’ work.[26:04] How to connect with Robb Powell via LinkedIn. You can connect with Robb on LinkedIn by visiting his profile here. To be added to the book waitlist, you can email [email protected] 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 back to The Private Equity Podcast, by Raw Selection! In this episode, Alex is joined by Andrew Towne, a partner at Olympus Pines and a five-time world record holder. Andrew shares his journey from private equity to breaking world records, including his impressive mountain climbing feats and insights into the private equity industry. Join us as we dive into the mindset and strategies of this remarkable private equity leader.Breakdown:[00:00] Andrew shares his experience climbing Aconcagua during a deadly season.[00:19] Introduction to Andrew’s investment focus in the American car wash industry and his world records.[01:53] Andrew discusses his career journey, starting in international relations and transitioning to private equity.[02:18] The common mistake private equity firms make: neglecting operations and transformation.[02:45] Why portfolio operations are essential for unlocking value in competitive deals.[03:14] Examples of operational improvements in revenue and cost management within portfolio companies.[05:06] Andrew’s consulting background at Boston Consulting Group and his shift into private equity.[06:07] How living abroad in countries like Germany and Kenya shaped Andrew’s worldview.[07:34] Moving from consulting to private equity: Andrew wanted to own decisions and manage risk.[09:31] Lessons from world travel: people are more similar than different across cultures.[12:36] A customer’s comment at a car wash illustrates how people view different roles in society.[15:05] Why Andrew and his team chose to invest in the evolving American car wash industry.[16:26] Technological innovations and automation driving growth in the car wash business.[17:49] How Andrew’s car washes use advanced technology to ensure customer satisfaction.[18:48] Balancing customer service with profitability in the car wash sector.[20:15] The fragmented nature of the car wash industry creates growth opportunities.[21:44] Challenges in building new car washes and scaling operations.[22:25] Andrew’s journey from overcoming childhood obesity to breaking world records.[24:47] How rowing at Yale taught Andrew to push through mental barriers and trust himself.[26:09] After completing the Seven Summits, Andrew turned to ocean rowing and set world records.[28:04] Stories from his expeditions, including surviving a deadly earthquake at Everest base camp.[29:02] The story behind Andrew’s world-record row from South America to Antarctica.[31:28] Andrew’s approach to confronting fears and mental challenges in everyday life.[35:21] Closing remarks from Alex and Andrew summarizing their discussion on private equity, personal growth, and world records. You can connect with Andrew Towne on LinkedIn by visiting his profile here. To be added to the book waitlist, you can email [email protected] 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 back to The Private Equity Podcast by Raw Selection! In this episode, Alex is joined by Beth Pollack, an applied AI and data strategy operating partner with over two decades of experience in building decision systems. Beth works closely with private equity firms and their portfolio companies to drive value through AI and data initiatives. She shares insights on how AI can be effectively implemented in private equity-backed companies, avoiding common mistakes and maximizing opportunities for growth. Breakdown: [00:00] Introduction to Beth Pollack, AI and data expert, discussing AI's role in private equity-backed companies.[00:31] Beth shares her background, with over 20 years of experience in AI and data strategy.[00:59] Beth highlights common mistakes in AI implementation, like starting without clear problem definition and not integrating workflows.[01:50] The importance of aligning AI projects with business goals and involving the right people early is emphasized.[02:49] Beth advises against using large consulting firms without AI expertise.[03:19] She explains the need for selecting the right AI tools beyond ChatGPT.[03:46] Breaking down problems into smaller components helps with AI efficiency.[04:16] Beth shares her journey from data mining to building AI systems.[05:09] A case study shows how AI increased EBITDA in a healthcare company.[06:07] In the healthcare project, AI and machine learning were used to process medical records and improve clinical decision-making.[07:33] AI helped the company enter new markets and improve patient outcomes by identifying conditions that human review may have missed.[07:57] Successful AI implementation begins by identifying workflows, engaging teams, and understanding investment needs.[08:53] Gaining leadership and team trust is crucial for effective AI strategies.[09:50] AI projects should align with broader business goals and focus on problem-solving.[10:46] Speed to value can be achieved by using existing tools and internal resources.[11:42] AI is advancing rapidly, becoming more accessible and cost-effective for businesses.[13:07] Beth discusses how the acceleration of AI innovation is impacting private equity firms.[14:06] Large language models (LLMs) and open-source technology are helping optimize AI for businesses.[15:23] Private equity firms should involve AI experts during the diligence process to assess investments and create value.[16:50] AI can transform not only new investments but also portfolio companies nearing exit.[17:11] Beth recommends staying updated by talking to practitioners and following AI publications and podcasts.[17:41] She shares her favorite podcasts, including Lex Friedman's and "AI on AI."[18:37] You can reach Beth Pollack on LinkedIn for further discussions on AI and data strategy.[19:07] Closing remarks from Alex. You can connect with Beth Pollack on LinkedIn by visiting her profile here. To be added to the book waitlist, you can email [email protected] 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]

In this episode of the Private Equity Podcast, host Alex Rawlings is joined by Paul Adams, an experienced CEO in the home and residential services sector. Paul shares his extensive experience in leading private equity-backed companies through multiple acquisitions and the challenges of navigating a highly fragmented industry. They dive into why private equity is increasingly focused on the residential services sector, what makes it such an attractive investment opportunity, and the importance of managing labor shortages in a people-driven business. [00:00] Introduction of Paul Adams.[00:44] Paul’s background in HVAC, electrical, and plumbing services.[01:38] Challenges private equity faces with mom-and-pop shops in home services.[02:08] Importance of patience and strong M&A skills in home services.[02:36] Balancing private equity's need for speed with the slower pace of acquisitions.[03:33] The emotional side of selling a family legacy and employee concerns.[03:59] How generational handovers can create trust issues during acquisitions.[04:28] Building trust and relationships with founders during the process.[04:57] Paul’s approach to working with contractors in residential services.[05:26] The people-driven nature of service businesses and their focus on relationships.[05:53] Addressing concerns of sellers about their employees and legacy post-sale.[06:52] Challenges in attracting technicians despite the sector's essential nature.[07:19] Impact of the labor shortage on growth in home services.[08:19] Acquiring companies to meet demand and gain market share.[09:18] Changes in the sector, including energy efficiency and government rebates.[09:48] How government regulations are driving growth in system replacements.[10:17] Increasing profitability through system replacements and upgrades.[10:47] Private equity's interest in home services due to favorable cash flow.[11:15] Low capital requirements and barriers to entry in home services.[11:41] Challenges for small companies to scale due to limited technicians.[12:09] Struggles of small businesses in growth because of labor shortages.[12:35] Fragmentation and integration challenges in residential services.[13:05] Costs of elevating unsophisticated businesses post-acquisition.[14:04] Importance of proper systems to meet customer expectations.[14:33] Paul’s strategy in buy-and-build and lessons learned from past experiences.[14:57] Avoiding big announcements and press releases post-acquisition.[15:29] Focusing on investment and continuity to maintain business stability.[16:19] Benefits of working in the background for better performance.[17:17] The power of consistency in building successful businesses.[19:43] Paul’s passion for the residential services industry and M&A challenges.[20:12] Alex’s closing remarks and a reminder to subscribe to the podcast.You can connect with Paul Adams on LinkedIn by visiting his profile here. To be added to the book waitlist, you can email [email protected] 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 back to The Private Equity Podcast, by Raw Selection! In this episode, Alex Rawlings is joined by Richard Brekka, Managing Partner and Co-Founder of Second Alpha. Richard dives deep into the explosive growth of the secondaries market, explaining how his firm provides liquidity to shareholders of private tech companies. The pair discuss the rise of secondary funds, why more companies are staying private longer, and the unique opportunities in the market for smaller, profitable tech companies.  Breakdown: [00:00] Introduction to Richard Brekka, Managing Partner and Co-Founder of Second Alpha.[00:12] Richard explains the secondary market's growth and why 90% of it is in unicorn companies.[01:10] Richard’s background and how he got into secondary investing after working in venture capital.[01:37] The common mistake of holding on to investments too long and the importance of realizing value sooner.[02:05] Richard explains the two types of secondary markets: fund secondaries and direct secondaries.[02:58] Growth in secondary funds driven by a lack of liquidity for GPs and the emergence of unicorn companies staying private longer.[03:58] Richard shares why 90% of transactions in the secondary market are focused on unicorn companies.[05:25] Discussion on the $2.3 trillion unicorn market and the trillion-dollar opportunity in companies valued between $100 million and $1 billion.[06:21] How Second Alpha identifies companies for investment by targeting profitable, growing companies over $100 million in revenue.[07:50] Second Alpha’s approach to providing liquidity to shareholders and building long-term relationships with CEOs.[08:49] Richard discusses the various reasons shareholders seek liquidity, from personal financial needs to new business investments.[10:12] The value Second Alpha provides to CEOs and how they become a trusted partner in helping companies toward their exit.[11:00] Richard explains the challenges of accessing private companies for investment and how Second Alpha overcomes these obstacles.[11:58] The importance of building trust with CEOs and navigating rights of first refusal in secondary deals.[13:26] Second Alpha’s role as a helpful partner to the CEOs, offering introductions, advice, and exit planning support.[14:53] Challenges private companies face after 10 years of growth, including management changes and adapting to market shifts.[16:22] How companies must pivot and develop new products to continue growing and reach their next phase of success.[17:20] Second Alpha’s focus on North American technology companies with strong revenue and profitability.[18:46] The advantage of investing in growth-stage companies at a discount through secondary transactions.[20:39] The role of artificial intelligence and cloud technologies in transforming industries and the efficiency opportunities they bring.[22:32] Second Alpha’s focus on disrupting industries like data analytics and finding efficiencies in cloud infrastructure.You can connect with Richard Brekka on LinkedIn by visiting his profile here. To be added to the book waitlist, you can email [email protected] 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]