Four Pillars Investors

Four Pillars partner Nick McLean has been busy, recently writing a new book on what business owners need to know about selling to private equity. Download a copy today! https://lnkd.in/e66DU8Kv

I had the pleasure of hosting Nick McLean on the VC10X podcast🎙️ Nick is one of the founders of Four Pillars Investors - a private equity firm that purchases and operates businesses in the lower middle-market ($20M in sales to $250M in sales). In this episode we talk about: - What is Private Equity? - How is Private Equity investing different from Venture Capital? - Investment thesis at Four Pillars Investors - How do Private Equity firms determine the valuation of a business? - Why is it important for founders to understand the world of Private Equity to have it as an exit option? - What type of businesses do Private Equity firms back? - How have rising interest rates impacted activity in Private Equity? & lots more Watch full episode at https://lnkd.in/gzHChMCM Listen on Spotify - https://lnkd.in/gr--vCMF #privateequity #MnA #aquisition

ROI is excited to welcome Nick McLean, co-founder and partner at Four Pillars Investors, to our Into the Corner Office podcast. In this episode, Nick shares why he decided to start Four Pillars, why he loves working with middle market companies (a man after our own hearts!) and why relationship and personality fit is incredibly important in business relationships. Listen wherever you get your podcasts!

Starting on your entrepreneurial journey is an exciting venture, and finding the right path to business ownership is key! The journey is filled with decisions—starting fresh or acquiring a business? In my latest YouTube video, I discuss this crucial choice. Now I can be a little biased. With my experience working in private equity, I tend to agree with those who say you should buy a business rather than start one. However, private equity isn’t always available to everyone. SBA loans can be a powerful tool to acquire a business.

 Securing an SBA loan involve several challenges and pitfalls. These are 3 things that the SBA loan officers won’t tell you: 

 1. Debt Service Coverage Ratio: Officers usually want a 1.5 DSCR. 

 2. “The SBA doesn’t do that”: What I have noticed is that different loan vendors say different things about the SBA. The best thing to do is going to the SBA SOP on Google directly. 

 3. Working Capital: Have a range of working capital line of credit. Whether you're new to entrepreneurship or looking to expand, SBA loans can be a gateway to success. Share your thoughts on SBA loans and let's discuss the future of business acquisitions! ⬇️ https://buff.ly/3U0Blh6 #SBAloans #businessacquisition #smallbusiness #investmentopportunity #Entrepreneurship #loans #investing

Should we adopt a 4-day workweek? The answer is not so simple. There’s no “one size fits all” approach that can meet everyone’s needs. People have different financial needs, priorities, and work styles. But I find the idea of a 4-day workweek a fascinating concept. Large-scale trials are underway globally, with early findings showing: • Some report working more hours per day and finding the schedule shift challenging • ⬇️ Fewer unproductive meetings (a boon for most!) Flexibility can be a strategic advantage for companies. I believe that the employers that are willing to make the effort to allow for flexibility are the ones that are going to be rewarded by having people that want to work there. Business owners benefit from employees staying longer and being happier and hopefully more productive. However there are some tricky issues to navigate when thinking about changing the working models that we’ve had for more than a century and what it means for productivity. Take manufacturing work as an example. If you have a certain amount of time, your output will be proportional to the time spent working on that task. Office work is a completely different scenario, where it’s harder to measure productivity. Moving to a 4-day week also raises questions around total hours in a week. Would an 8-hour office day become 10 hours? For manufacturing shifts, unions may balk at 10-hour days. In one example, hourly workers rejected 4 10-hour days in favor of 5 8-hour days, likely due to fatigue or sync issues with others' schedules. While some companies are experimenting with shorter workweeks, findings reveal mixed outcomes. Reduced meetings and improved work-life balance are positives, but adjusting to new schedules and maintaining productivity remain key concerns. Have you tried the 4-day week? Do you think it could eventually become the new norm? I’d love to hear your thoughts. @Four Pillars

My goal is to empower entrepreneurs with the knowledge and tools necessary for growth, guiding them towards long-term success through personalized investment solutions. Understanding private equity is a necessity for sustainable growth in your business. Our commitment goes beyond; we aim to help entrepreneurs with the in-depth knowledge and tools essential for navigating the world of investments. How? By focusing on education, transparency, and strategies. At Four Pillars Investors we strive to explain investment strategies, making them more accessible. 1. Education First: This approach involves breaking down investment strategies so it is more understandable, ensuring entrepreneurs are informed participants in their business journey. 2. Transparent Partnerships: We believe in complete transparency about the risks, rewards, and responsibilities that can be involved in private equity. 3. Tailored Strategies: We know that each business has its unique challenges and opportunities. Our team works closely with you to understand your business which lets us offer personalized guidance that helps with your long-term success. https://buff.ly/4azcLt2 #Investment #Success #Investing #Entrepreneurs #Business #PrivateEquity

Thanks again to Ryan Ray 🦍 for having me on his Deal Flow podcast the other day. We talked M&A, lean manufacturing and covered other fun topics. Check it out below, or wherever you get your podcasts. https://buff.ly/49b4hqY

If you're looking to get into private equity, you likely have your career path all mapped out - MBA, score a job at a top tier Wall Street firm, work your way up. I thought I had it all figured out too. But despite credentials and a bluechip resume, I struggled for years to land the private equity roles I really wanted. I realized that if I wanted a seat at the table, I’d have to put my own name on the door. So I took a different path and co-founded my own firm. Here’s what I’ve learned in the 15+ years of my career since: Going against the grain produces invaluable judgment While my resume may have had some holes compared to my pedigreed peers, my trial-by-fire experience starting a firm did cultivate something very valuable - seasoned judgment and a sixth sense of risks that textbooks can’t teach. Having sat in the CEO chair, I have firsthand experience driving operational performance and turning companies around. When our portfolio companies get into hot water, I can dig into the granular decisions that make or break a business. My partner and I have earned some battle scars from our years in the trenches calling our own shots. The traditional route still has merits Had I stuck to the well-worn path and landed a private equity role right out of my MBA, there’s no doubt I would have built an impressive skill set. The deal experience and exposure at top tier firms is invaluable: Rapidly develop financial modeling, due diligence, operations expertise Learn what makes a good vs bad investment decision Get exposure to numerous companies and transactions Build a powerful network I didn't have access to those experiences early on. So as an entrepreneur, I had to use grit and hustle to pick up those skills anyway I could. It was a longer road, but I got there in the end. My main tip for aspiring investors... Consider both routes — but remember there’s no “easy” route. Traditional paths are safer, offer structure, and surround you with world-class mentors. But forging your own trail, while harder, builds grit, resilience, creativity and instincts that serve you the rest of your career. @Four Pillars #PrivateEquity

Yes, technology helps us immensely be more effective and get more done — but it doesn’t replace the timeless art of building relationships. In fact, people and businesses are craving more meaningful relationships than ever. We believe this so strongly at Four Pillars, that it’s one of our four key values: Relationships as a cornerstone for success, challenge the status quo, servant leadership, and persistence. To start, you should know the difference between networking and relationship building. “What can I get for myself?” → “How can I help someone else in this situation/interaction/relationship?” Networking looks like: Thinking about deals and connections solely as transactional Mindless trying to meet as many people as possible – but not going any further than that Sending out mass Linkedin requests just to boost your visibility While building relationships looks like: Meeting over coffee instead of another Zoom call Caring about other people – their opinions, their desires, their goals Using technology, whether email, LinkedIn, or video calls, to *really* connect with those around you When I meet someone I make a concerted effort to not just think about who they are, what they do, and how that works with what I’m trying to do or how my goals could be benefitted. If it results in something benefitting my business or their business - great. But that’s not the priority right now. The priority is building a relationship we can nurture over time. Our motto for relationships at Four Pillars: “Do what you say and say what you do.” This makes a crucial difference for any business owner. As we continue evolving into more of a digital and dispersed working environment, you should know how to foster and maintain strong connections because it’s essential to your long term success.

What’s the path to the American dream? I’d argue investing in small businesses presents an incredible opportunity to do this. Beyond the financial rewards, investing in small businesses offers many benefits: A unique opportunity to be an active participant in the nation's economic engine You become a steward of Main Street, fostering local jobs, contributing to community wealth Help potentially shape the future of industries Unlike the faceless world of publicly traded equities, small businesses offer a tangible connection to your investments. You witness firsthand the dedication of entrepreneurs, the ingenuity of their innovations, and the direct impact your capital has on their growth — something I’ve been incredibly inspired by during my time at Four Pillars. And a bonus? More than just capital, your expertise can greatly benefit entrepreneurs through mentoring and connections. If you're searching for your next investing challenge, look local. In the thriving main streets and scrappy startups lies an opportunity to shoot for the moon while setting entrepreneurs up for success. You’ll leave your mark on the world much more indelibly than simply by reaping the rewards of a long-term dividend.