Deal Sourcery

Joanne Verkuilen, Founder and Managing Partner at MiddleM Creative, shares her insights on transforming marketing in private equity. She discusses the alarming statistic that firms miss 80% of relevant deals due to outdated outreach methods. The conversation highlights the shift towards strategic, multi-channel marketing to enhance visibility and build trust with founders. Joanne emphasizes the importance of tailored messaging and genuine partnerships, arguing that effective brand strategies are essential for navigating today's competitive landscape in private equity.

Justin Smith, Managing Director of Business Development at Agellus Capital, shares insights on winning deals before they hit the market. He discusses the importance of relationship-building and effective communication with founders and buy-side advisors. Justin emphasizes the need for a robust business development infrastructure and tracking metrics to enhance deal-flow opportunities. He explores strategic banker engagement and the value of thorough pre-work for competitive auctions, revealing essential strategies for gaining an edge in a crowded market.

Is your compensation in line with your peers in private equity business development? Are you unsure of what the market standard is for base, bonus, and carry? Today we break down the highly anticipated 2024 Business Development Compensation Survey, offering crucial insights into current compensation trends, bonus structures, and the factors that truly influence your earning potential in the competitive world of PE deal sourcing. Get the data you need to benchmark your worth and understand the evolving landscape of BD compensation.CHAPTERS:00:00 - The Compensation Conundrum: Are You Paid Fairly in PE BD?01:11 - Unveiling the 2024 BD Compensation Survey: What's Inside?01:49 - Behind the Data: Survey Methodology and Participation Insights03:55 - Who Responded?: Demographics of the BD Compensation Survey06:23 - Lower Middle Market Dominance: Where BD Talent is Concentrated08:11 - Regional Hotspots: Northeast Still Leads in BD Professionals08:59 - Compensation Blind Spots: Why This Survey Matters09:39 - The Compensation Gap: BD vs. Investment Professionals11:14 - Diving into the Data: Key Compensation Takeaways for 202412:33 - Uniformity Across Titles?: Base Salary Increases by Seniority Level13:36 - Bonus Bumps and Deal Volume: A Correlating Trend?16:14 - Carry Allocation Trends: When Does Carry Kick In for BD Roles?19:55 - Decoding the Numbers: Base, Bonus, and Total Comp by Title23:24 - The Compensation Formula?: Regression Analysis and Key Drivers25:14 - Seniority Rules: Title as the Top Predictor of Base Salary27:31 - The Office Paradox: Days in Office and Compensation Correlation30:44 - Discretionary vs. Metric-Driven Bonuses: What's the Breakdown?33:56 - Success-Based Bonuses: A Smaller Piece of the Pie Than You Think35:53 - The Bonus Structure Shift?: Moving Towards Metric-Based Compensation?39:28 - Intermediary vs. Proprietary Sourcing: Impact on Bonus Structures?41:45 - Get the Full Report: Where to Dive Deeper into the Data42:33 - Stay Connected: Deal Sourcery and Coastal Partners ResourcesKey Takeaways:"We saw an 11% increase from 2023 base salary into 2024. And that's across all levels, seniority fund sizes. But you know, a healthy increase.""VP level and above is when it starts to be much more common to have a carry allocation.""Seniority level seems to be the primary indicator of like the most significant change in base compensation. And then fund size kind of behind that...""57% indicate that they only receive discretionary bonuses."🔗 CONNECT WITH THE HOSTS:Dan Herr: https://www.linkedin.com/in/danielherr/Matt Rooney: https://www.linkedin.com/in/matt-rooney-coastalpartners/Coastal Partners: https://www.coastalpartners.co/#BusinessDevelopment #PrivateEquity #CompensationSurvey

Ori Eldarov, the Founder and CEO of OffDeal, is transforming small business sales with AI-driven solutions that maximize value and simplify processes. He shares insights from Wall Street to entrepreneurship, highlighting how AI addresses the challenges of deal sourcing in private equity. Discover the scarcity of sellable businesses in the U.S. and the inefficiencies of traditional methods. Eldarov explains how OffDeal automates investment banking tasks, revolutionizing M&A and making transactions more accessible for small businesses.

Raj Singh, founder of GoMoment and an AI entrepreneur, discusses the future of AI in private equity. He shares his journey of building an AI hotel concierge and warns against the pitfalls of generic outreach in PE. Raj emphasizes the importance of authenticity and human relationships in building connections with investors. He also dives into AI's role in enhancing outreach, the necessity of keeping humans in the loop, and how personalization can accelerate go-to-market strategies. Plus, he provides valuable advice for PE professionals on fostering trust and meaningful engagement.

Discover the story of how Campminder's CEO, Dan Konigsberg, built a wildly successful, values-driven company culture, attracting both top talent and ideal investors. Learn how to move beyond generic outreach and create a magnetic force that draws the right partners to you.Dan shares his journey, revealing the crucial role of authentic core values in building a sustainable business. This episode is a must-listen for entrepreneurs, CEOs, and anyone seeking to create a thriving workplace.Chapters:00:00 - Navigating Peak Operational Seasons02:24 - Comprehensive Camp Management Solutions03:48 - Leveraging Facial Recognition for Engagement05:36 - Bootstrapping to Longevity14:36 - The Role of Authentic Core Values19:50 - Creating Alignment Through Core Values23:54 - Culture as a Competitive Advantage27:18 - Defining and Upholding Company Values32:27 - Choosing Value-Aligned Investors40:20 - Long-Term Thinking for Sustainable Growth45:26 - Transparency in Leadership Transitions48:46 - Evaluating Culture During Mergers and Acquisitions54:10 - Adding Value Beyond Capital57:12 - Authentic Outreach in Private EquityConnect with Dan:LinkedIn: https://www.linkedin.com/in/dankonigsberg/Campminder: https://campminder.com/Links:Dan Herr: https://www.linkedin.com/in/danielherr/Matt Rooney: https://www.linkedin.com/in/matt-rooney-coastalpartners/Coastal Partners: https://www.coastalpartners.co/#CompanyCulture #ValuesDrivenBusiness #PrivateEquity

Lane Rankin, Founder of Illuminate Education, shares his transition from educator to EdTech entrepreneur. He emphasizes the vital role of human connection in private equity, advocating for a shift from transactional approaches to relationship-driven deal sourcing. Lane discusses the challenge of authenticity in the cutthroat private equity culture and promotes vulnerability as a way to build trust. He highlights the importance of storytelling and genuine curiosity when engaging with founders, ultimately aiming for purpose-driven investing that prioritizes shared values.

Discover how private equity firms can tackle the challenge of sourcing consistent deals. The discussion highlights the cyclical nature of deal flow and the importance of dedicated business development roles. Learn about setting measurable goals, managing pipelines with detailed stages, and fostering accountability. Plus, find out how building strong relationships with investment bankers can enhance deal coverage. Dive into strategic goal-setting and the crucial role of mentorship for effective collaboration and communication in sourcing teams.

Bill Nunan, seasoned private equity expert with extensive experience working across multiple verticals and current CEO of Lexipol, joins the podcast today to share his deep knowledge of the private equity world. Along the way, he offers a clear explanation of what it means to be a private equity operator, the evolution of best practices, and how these changes have shaped today’s business landscape. Bill emphasizes the importance of strategic planning, particularly in the context of add-on acquisitions, and the value of building strong relationships with founders. Our guest also discusses how to manage daily priorities, focusing on achieving destination economics while balancing the challenges that come with mergers and acquisitions. He shares actionable advice on the collaborative nature of private equity, explaining how operators and sponsors can work together to create long-term value through strategic partnerships. The conversation as shared here today highlights the importance of developing a platform story to guide business strategy and concludes with key insights on building effective teams and managing deal sourcing relationships. For anyone navigating the fast-paced world of private equity, this episode delivers essential strategies for success from a proven industry leader.Episode Highlights:00:00 Intro04:38 Transitioning from Public to Private Equity05:45 Evolution of Best Practices in Private Equity06:50 Role of a Private Equity Operator Explained09:52 Daily Responsibilities of a Private Equity Operator11:42 Focusing on Destination Economics for Growth14:46 Importance of Strategic Planning for Add-On Acquisitions18:24 Collaborative Approach Between Sponsors and Operators22:28 Key Concerns of Founders During Add-On Acquisitions24:55 Framework for Managing Deal Sourcing Relationships29:11 Managing Simultaneous Deal Pursuits32:42 CEO’s Role in Add-On Acquisition Strategy36:51 Building a Platform Story for Business Strategy39:41 Defining a Strong Platform Story for Market Positioning41:18 Lexipol's Global Mission in Public Safety Management43:22 Advice for Deal Sourcing and Building Relationships44:59 Changes in Deal Sourcing Over Time46:12 Best Practices for Effective Deal Sourcing Outreach49:28 Private Equity as a Pervasive Business Model52:41 Building and Leading Powerful Teams as a CEO53:42 Traits of Effective Private Equity Partners55:41 The Importance of Collaboration Between Operators and SponsorsKey Takeaways:"A private equity operator is hired to deliver destination economics. Growth in EBITDA is the mission. Challenges don't change that.""The secret to success is building a powerful leadership team. Develop opportunities for the organization.""Prioritize actions that drive the biggest impact.""A good platform story creates uniqueness and differentiation. It defines a space you can own.""Private equity is pervasive. Study it, become an expert. It's different from founder-led or public companies.""Building powerful teams is my greatest strength. Invest time in developing leaders and making them successful.""Strong relationships with founders buffer tough moments in deals. They help align post-transaction expectations.""The rigor of an M&A plan is crucial. Define your targets and dismiss what doesn't fit your strategy."Links:Dan Herr: https://www.linkedin.com/in/danielherr/Matt Rooney: https://www.coastalpartners.co/Bill Nunan: https://www.linkedin.com/in/billnunan/

Rod Jimenez, CEO of Sceptre Hospitality Resources, shares his expertise in hospitality tech, revealing how their AI-driven solutions are revolutionizing hotel management. He discusses the crucial role of strategic partnerships, particularly with private equity, in driving growth. Rod highlights the transformation of operations through automation and how aligning with the right investors can pave the way for long-term success. With insights on relationship-building and navigating investor discussions, he emphasizes the importance of genuine dialogue in fostering successful collaborations.