Welcome back.
One follower on X had the idea that I should memorialize some of the best X posts here so folks can be sure to see them and also so I have a record.
I liked that idea so I am going to do just that. In addition, I’m going to try to offer other thoughts - follower questions or other ideas that might make more sense here vs. X.
I’m not sure if this will be weekly, bi-weekly, or monthly yet but don’t worry about a cluttered inbox.
As always, I welcome your ideas on what you’d like to see. Follow me on X here.
X follower question
Where did you find your roles for operating companies, or were you reached out to by recruiters?
My response: I started off on investment banking and then pivoted to PE backed businesses where the pace was fast. That suited me. I learned a lot in IB that helped. I leveraged my IB network for the first job. Next 2 were recruiters. Then next 2 were network. Would definitely lean into the recruiters - never know what they’ll dig up esp. as you are building your network.
Here is another post I wrote that about how to find a PE operator role.
Today, I’m reposting two tweets. The first garnered a huge response - my most impressions ever. Apparently a lot of you have had ridiculous requests made by your boss so you could commiserate.
The second is one of my favorites, about my dad’s retirement and what really matters.
Worked for a PE firm… $3B fund, middle market. We had grown EBITDA 3x in about 3 years, half organic and half via acquisition (and half of the acquisition EBITDA was synergies we executed). We go to sell the company and the MD asks us to project gross margins by projecting every single SKU’s gross margin for the next 12 months We had ~200k SKUs. I told him (politely) that there was no way that effort would be worth the energy. It would take us weeks to accomplish that and at best we would have a forecast that assumed two major variables - price and mix (we had about 6 mos visibility on future costs). He wouldn’t listen. Had to have this done. We spent about 30 days trying to get something together. In the end he realized it was a futile effort. Anyway, his delay lost us a lot of momentum and his continued micromanagement through the sale process eventually botched the entire thing. Didn’t sell. Devastating. Don’t assume PE knows what they’re doing.
Today is my dad’s last day after 43 years at the same company. He didn’t work for private equity or a publicly traded business. He spent his entire career working for a family owned company. Through that company, he provided stability, security, and more than enough for his family. It’s the definition of a successful career. A couple weeks ago, I attended his retirement dinner. It was a good reminder that there’s more to a career than how much money you make or how big your business gets. Person after person stood up to talk about his impact on their lives- funny stories, wartime memories, and genuine moments of admiration. One of the most memorable was a woman who had encountered my dad at a college basketball game. She knew who he was but was not an employee of the company, was just sitting nearby. In her section, two guys started to get out of control. They were screaming and cursing and starting to get a little physical. Everyone around them was getting uncomfortable and frustrated. It turned out Dad was in that same section. Anyway, after a few minutes, Dad turned to them and told them to stop. He said people he cared about were sitting here and this behavior was unacceptable (I had a flashback to my childhood on that last phrase). They got confrontational, but after some back and forth he didn’t back down. They settled down. The woman telling the story watched that all happen. No one asked him to intervene, but dad stepped up. She later remembered that story when she was deciding between two job offers. Wanting to work for a company with people like that ended up being the difference. There must have been dozens more just the same… 70 year old men crying, sharing how Dad helped them professionally and personally. I noticed that the professional help felt personal to the people recounting the story. For them, it wasn’t about getting work done, it was about them. When Dad spoke, he shared one message: the people around you will make you who you are. So, choose the people around you wisely. For all the talk of success on here, there’s more to life. People will be your true legacy. How will you be remembered? I am asking myself that same question. Cheers to 43 years!
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