Sageview Capital’s Post

Great to see the new GrowthCap list of Top Growth Equity Firms. Lots of software-centric investors on the list; tons of familiar names and a handful of new ones. Really interesting to watch #PrivateEquity play a larger role in building lasting software franchises in this market. Between a post #ZIRP world leading to lower valuations combined with the FTCs obstructionist actions and large piles of cash, PE will continue to be a critical actor in the market. For folks looking to get smarter on the market, RJ Lumba & Team are an incredible resource. Check out the Pod as well! https://bit.ly/3wBeake

Considering selling your company to Private Equity? Here's a book you shouldn't miss. I've enjoyed engaging with Private Equity as a CEO, owner, and Chair. In Delegate with Blue Equity and now EMK Capital. On board level as Chair with Dansk Ejerkapital in Viegand Maagøe. If this resonates with you, then this book is a must-read.... Adam Coffey has written an extremely pragmatic book about navigating private equity as a business owner/founder. It provides an excellent introduction to the subject. I will include an interview with Adam in the comments. #privateequity #Growth #Delegate

Over the past few months, I've had the privilege of exploring opportunities with several private equity firms interested in acquiring regional commercial contractors. While these conversations have been enlightening, they've also sparked some important reflections on the role of private equity in our industry. The Positives: 1️⃣ Capital Injection: Private equity firms bring substantial financial resources, which can enable businesses like ours to scale, invest in advanced technology, and expand our service offerings. 2️⃣ Strategic Expertise: Private equity firms often have seasoned professionals who can provide valuable strategic guidance and industry insights. 3️⃣ Exit Strategy: Selling to a private equity firm can offer business owners an exit strategy and liquidity, allowing them to transition into new ventures or enjoy their well-earned retirement. The Negatives: 1️⃣ Loss of Independence: Private equity acquisitions can lead to a loss of control and independence, which is a significant concern for business owners who are passionate about their companies. 2️⃣ Short-Term Focus: Private equity firms often have a shorter investment horizon and might prioritize quick returns over long-term sustainability. 3️⃣ Cultural Shift: The unique culture and values of a regional business can sometimes be compromised as it integrates into a larger corporate structure. As a business owner, I believe it's crucial to weigh these pros and cons carefully and make a decision aligned with your personal and business goals. #RoofingIndustry #PrivateEquity #BusinessAcquisition #Entrepreneurship #ProsAndCons #CommunityStrength

Private Equity Strategies for Business Owners - Master private equity strategies with Kenwood’s comprehensive guide. Learn to navigate complex markets, balance risk-reward, and tap into growth opportunities. https://hubs.la/Q02mmzlW0

📘 #BookRecommendation: “The Private Equity Playbook” by Adam Coffey. Just finished reading "The Private Equity Playbook" and gained some incredible insights into the world of Private Equity! Here are some key takeaways that shed light on the dynamic and exciting landscape of PE firms: • The Growth Story: Private Equity firms have seen exponential growth globally, expanding from 312 firms in 1990 to a staggering 5390 by the end of 2018. 📈 • Fund Variety: Discover the diverse world of Private Equity with fund types such as Buyout and VC Funds. Also, explore innovative equity structures like Pooled Coinvesting and Limited Partner Coinvesting. • Measuring Success: Delving into a firm's performance reveals metrics that are essential for understanding their impact: the Internal Rate of Return, Multiple on Invested Capital, and Distributions to Paid in Capital serve as critical benchmarks. • EBITDA's Impact: Dive into the heart of valuations—EBITDA. It's not just a metric; it's the foundation for assessing companies in Private Equity. • Tax Strategies: Leverage plays a significant role in PE, leading many portfolio companies to experience tax benefits during their tenure under management. • Strategic Shifts: Learn how focusing on financial expenses can reshape a company's trajectory under Private Equity ownership. Shifting expenses from OPEX to CAPEX often increases EBITDA and enhances operational performance. •Valuation Dynamics: Understand the factors that shape valuation multiples—growth, customer concentration, and EBITDA margin. • Paths to Value: Explore the three avenues to increase shareholder value—organic growth, margin expansion, and M&A. • Mastering M&A: Uncover the strategies PE firms use to grow companies, especially through the power of mergers and acquisitions. • Synergies Unleashed: Merging companies not only brings synergies but often requires leverage (debt), which becomes available before the deal is realized—making it a must for successful deals. • Expertise Advantage: Private Equity's edge shines in M&A processes, as in-house teams drive analysis and predictions without relying on external consultants. • Consulting Collaborations: Discover why Private Equity firms collaborate with consulting groups: it´s EBITDA-friendly advice, leads to the implementation of best practices, and exposes the company to fresh perspectives. What aspect of the Private Equity world intrigues you the most? Let's discuss and learn from each other's perspectives! 🚀📚📈 #FinanceBooks #PrivateEquity

👏 Check out this new publication; "Same owner, different impact: How responses to performance feedback differ across a private equity investor's portfolio firms" in the Strategic Entrepreneurship Journal! Novel insights are provided into #PrivateEquity investors in regards to how and when they intervene in the ventures in their portfolio 👇 https://lnkd.in/eV7K5PmU Well done to Veroniek Collewaert (she/her) Jeroen Neckebrouck Tom Vanacker Dries Bourgois Sophie Manigart ! 🌟 #entrepreneurship #venturegrowth #corporategovernance #privatequity

Thanks to GrowthCap for including us on their Top Growth Equity Firms list! For over 35 years, we have been focused on building great companies, partnering with exceptional people, and staying true to our core beliefs. Awards like these are a testament to our firm's hard work and partnership mentality with our founders and executives. Some insight on the process and winners, from GrowthCap: "This year’s process began with a consideration set of over 400 firms. Final round candidates were reviewed methodically on the strength of their nomination submissions. We evaluated each firm’s unique capabilities, sector expertise, investment judgment, demonstrated value creation, senior partner composition, talent retention, firm evolution, and firm momentum, among other attributes. Not all firms are created equal and one of the biggest factors that distinguishes a firm’s ability to thrive over the long term is integrity. The best firms institute integrity and imbue trust as a core part of their culture when interacting with each of their stakeholders—portfolio companies, limited partners, their employees, their industry colleagues and others. They also institute integrity into how they participate in the world around them including their communities as well as social and environmental initiatives." To see the full list: https://lnkd.in/eJyiMEhy

Private equity firms are increasingly setting their sights on founder-owned companies as key targets for lucrative exits. With their unique characteristics and untapped potential, founder-owned companies represent over 56% of US private equity deals in Q4 2023, up from 45.5% in Q1 2021. But what makes these businesses stand out in the sea of investment opportunities? And more importantly, how can private equity ensure that these companies reach their full growth and value creation potential? TBM’s Private Equity Practice leaders Gary Hoover and Ranjith Rajendran highlight the unique characteristics of Founder-Owned investments and the nuanced approach required to achieve private equity value creation and growth targets. From leadership structures that may need reinforcing, to a personal attachment that founders, and family members have with their companies – private equity firms must tailor their strategies before and after the deal. Read the article here ➡ https://lnkd.in/e26m2hM2 #FounderOwned #PrivateEquity #ValueCreation #DueDiligence #ExitPrep

Key Takeaways and insights from our experience for building a Win-Win partnership between PE firms and Founder-owned companies in value creation. Reach out to Gary Hoover or Ranjith Rajendran on how TBM Consulting Group can support or accelerate your value creation efforts.

In a Q&A with StrategicCFO360 Auvik CFO Bob Feller offers his advice to growing companies considering working with private equity firms. Bob breaks down the different types of PE investors and the kind of growth they seek from their portfolio companies. https://bit.ly/3WSmaIF #CFO #PrivateEquity