Buyers and Builders

This one hire is something all profitable, cash-flowing traditional businesses can do. Yes, it can be a significant investment -- great specialists aren’t cheap -- but in the right setup, it can completely change the trajectory of a company.I share two real-world examples of owner-operated, non-glamorous businesses that hired a Chief Investment Officer to professionally manage excess cash. In both cases, capital allocation quietly became the dominant profit engine, generating the majority of group earnings while the core operations remained stable and conservative.TIMESTAMPS0:00 The hidden problem of excess cash in profitable businesses1:55 When reinvestment, M&A, and dividends all stop making sense2:00 Hiring a Chief Investment Officer3:10 Case study: a fruit importer that turned cash into its main profit engine4:40 Case study: a family manufacturer where capital allocation drove 80% of profits6:45 Why capital allocation becomes the real growth engine over timeSponsors:https://capitalpad.com/https://www.spacebarstudios.co/inquireFollow Mikk/PrivateEquityGuy on Twitter: ⁠⁠https://x.com/PrivatEquityGuyThis podcast is for informational purposes only and should not be relied upon as a basis for investment decisions.

In this episode, Todd Saunders shares how one small group of customers with much better retention changed the direction of his entire business. Instead of chasing trends or going broader, he went deep into a simple, overlooked niche -- independent flooring retailers -- and ended up building the core software used across the industry.Todd explains why brand and community mattered more than features, how Facebook groups and events became his main growth drivers, and how that approach helped him roll up 8 niche software companies, grow past $30M in revenue, and exit for $100M+.Show notes:0:00 From Google to flooring software5:19 The retention data that changed everything 7:44 The bold pivot (and why revenue collapsed first)8:37 8 acquisitions lead to a platform build13:35 Sponsor: CapitalPad15:40 51% brand, 49% product (the real moat)18:58 The Facebook group engine25:05 FloorCon: turning community into a movement28:12 Sponsor: Spacebar Studios31:09 The “great idea” that nearly blew up the business40:07 Buying niche software: relationships vs outreach44:03 Integration: the stuff nobody tells you57:47 His founder filter: “I know in 5 minutes”59:22 Hospitality vs service (the lesson that explains everything)Sponsors:https://capitalpad.com/https://www.spacebarstudios.co/inquireFollow Mikk/PrivateEquityGuy on Twitter: ⁠⁠https://x.com/PrivatEquityGuyThis podcast is for informational purposes only and should not be relied upon as a basis for investment decisions.

We go deep on Justin Ishbia, co-founder and Managing Partner of Shore Capital Partners - one of the most successful lower-middle-market private equity firms in the U.S.After inviting Justin on the podcast and being asked to reconnect in early 2026, I used the time to study Shore’s work more closely. This episode is the result: a synthesis of Justin’s long-form interviews, public commentary, and Shore’s operating history, focused on the systems behind their results.TIMESTAMPS0:00 Why to study Justin Ishbia1:30 Buy small, professionalize, roll up, sell the platform2:20 The numbers: Shore’s reported track record (platforms, exits, and why the median matters)3:15 “I’m not smart, I just know who to copy”4:30 How “luck” is earned through repetition6:55 Reserving most capital for add-ons to create multiple paths to 3x - 8x outcomes8:43 Sponsor CapitalPad: backing acquisition entrepreneurs buying real, unsexy businesses9:47 Why “the system is the star”Sponsors:https://capitalpad.com/https://www.spacebarstudios.co/inquireFollow Mikk/PrivateEquityGuy on Twitter: ⁠⁠https://x.com/PrivatEquityGuyThis podcast is for informational purposes only and should not be relied upon as a basis for investment decisions.

Steve Lawrence, the founder of Uncomplicated Group went from middle management at a $14B manufacturer to buying five businesses in a few short years -- now running two injection-molding factories, employing 45 people, and shipping 200M parts a year.But this episode isn’t about the highlight reel. It’s about the real path: quitting his job for a deal that collapsed at the finish line, burning cash on diligence, watching funding evaporate, and learning what “the seller isn’t emotionally ready” actually means -- when the mortgage clock is ticking.We dig into how Steve rebuilt his deal process from scratch, how he sold himself with zero acquisition track record, the red flags he now screens for, and the operating system (EOS) that changed everything post-close.TIMESTAMPS0:00 From corporate manager to 5 acquisitions in manufacturing1:06 The moment Steve knew he was done with corporate life2:54 The “measured exit” that turned into months of uncertainty4:59 The first deal: tiny business, bad structure, and a lucky failure5:42 The seller starts ghosting -- and the deal unravels7:01 Losing the deal, burning cash, and rebuilding his entire approach8:57 Why most people shouldn’t pursue acquisitions (the “strong why” test)9:55 Sponsor: CapitalPad -- backing real operators in overlooked markets11:06 How to tell if a seller is actually ready to sell14:02 The exact outreach message that landed his first acquisition19:04 Structuring and closing the first deal + brutal first 90 days20:57 Sponsor: Spacebar Studios — building newsletters for HoldCos & investors23:18 Implementing EOS: turning chaos into an operating system39:45 80/20 thinking in manufacturing: cutting noise, expanding marginsSponsors:https://capitalpad.com/https://www.spacebarstudios.co/inquireFollow Mikk/PrivateEquityGuy on Twitter: ⁠⁠https://x.com/PrivatEquityGuyThis podcast is for informational purposes only and should not be relied upon as a basis for investment decisions.

For the last 20 years, private equity followed a simple formula: buy with leverage, cut costs, rely on multiple expansion, exit at a higher valuation.That playbook worked incredibly well.But it no longer does.In this episode, I break down why the old private equity model is structurally broken - not just cyclically - and why a new model is emerging. A model where cheap debt doesn’t save you, multiple expansion can’t be assumed, and real value creation matters more than spreadsheets.TIMESTAMPS:00:00 Why the old private equity playbook is dead and why buy at 8x sell at 12x no longer works02:05 What the old PE model was and why it worked for 20 years06:25 Why the old playbook is failing structurally as rates rise and leverage weakens09:18 The shift from capital deployment to capability deployment11:00 How the industrial builder mindset creates real alpha today14:10 Why specialization beats being a generalist buyer18:30 How founders should diligence buyers in the new model22:15 The opportunity for HoldCo builders and small buyers in the lower middle marketSponsors:https://capitalpad.com/https://www.spacebarstudios.co/inquireFollow Mikk/PrivateEquityGuy on Twitter: ⁠⁠https://x.com/PrivatEquityGuyThis podcast is for informational purposes only and should not be relied upon as a basis for investment decisions.