In this episode of the podcast, Tammie Miller and Tim Oleszczuk, your hosts, are joined by Jim O'Rourke who is the former president and CEO of A&A Manufacturing. Jim sold to private equity and is sharing in this episode the details about this process, the pros and cons, and how he rolled equity as part of that transaction.
- [1:28] Jim shares the main aspects of the transaction.
- [3:18] Jim shares how they encountered a strategic buyer.
- [4:01] Deciding to take the private equity road
- [4:45] Jim shares the basics of the structure coming out of the deal.
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- [5:22] Jim explains how his role changed, from prior to after the transaction.
- [6:10] The deal was finalized in 2007 and in 2008 the economic crisis shook the financing world, Jim shares his experience during those times.
- [9:10] Jim shares the particularities of his family business entering private equity.
- [10:51] Jim talks about enjoying the interactions and the pressure created by transitioning to private equity.
- [17:17] Jim shares why this was a very successful transaction for him.
- [18:18] Jim extends his advice to anyone considering selling to private equity.
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- [18:35] Go into the process with a really strong management team.
- [19:00] Jim shares how he communicated to his management team that they were selling to private equity and talks about their reaction.
- [20:54] Jim talks about how employees were introduced to the change of ownership.
- [23:00] The process of selling a business is incredibly overwhelming on the management team.
- [26:43] Jim gives his advice to those interested in co-investing as a previous owner.
If this topic interests you, check out these other resources:
eBook: The Second Bite of the Apple
Blog: "Rolling Equity in a Business Sale"
Blog: "If You Own a Business, You Need to Care About Private Equity"
Blog: "4 Advantages & Disadvantages of Remaining a Shareholder After an Acquisition"
