In the sixth installment of the PE Insight Series, Todd Taskey hosts eight private equity executives to discuss underwriting platform investments and the role of add-on acquisitions.

Here’s a glimpse of what you’ll learn:

• [1:35] Larry Shagrin talks about underwriting organic growth over add-on acquisitions
• [3:27] Using tuck-ins to expand capabilities, services, and markets
• [5:30] Stuart Coleman discusses balancing add-on M&A with organic growth and culture
• [7:59] Why platforms must stand on their own before bolt-ons
• [9:53] How tuck-ins can accelerate, but not replace, a core thesis
• [11:38] Risks in buy-and-build strategies and bad acquisitions
• [14:33] The importance of a strong cultural fit in acquisitions
• [17:29] How Lee Minkoff balances prudent underwriting with add-on M&A growth

In this episode…

Private equity firms often talk about growth, but the real question is how much of that growth should come from the original platform versus future acquisitions. When underwriting a deal, how much should investors rely on what they can build organically?

Thomas Cooperrider, Stuart Coleman, Jamie Kennedy, Brian Schmidt, Bill Sommerschield, Chad Scripps, Lee Minkoff, and Larry Shagrin discuss underwriting platform investments. With host Todd Taskey, they explain the role of tuck-ins, the risks of poor integration, and why organic growth remains central to a successful investment thesis.

Resources mentioned in this episode:

• Todd Taskey on LinkedIn 
• Tower Partners
• Brian Schmidt on LinkedIn
• Court Square
• Bill Sommerschield on LinkedIn
• Keystone Capital 
• Chad Scripps on LinkedIn
• Black Lake Capital
• Lee Minkoff on LinkedIn
• Renovus Capital
• Lawrence Shagrin on LinkedIn
• Millpond Equity Partners
• Jamie Kennedy on LinkedIn
• Griffin’s Wharf Partners
• Thomas Cooperrider on LinkedIn
• Dynamic Core Capital
• Stuart Coleman on LinkedIn
• Superstep Capital

Sponsor for this episode…

This episode is brought to you by Tower Partners, a private investment bank and advisory firm providing premier service to the lower middle market.

We are a national firm with a global reach, supporting clients throughout the United States with headquarters in Columbia, MD, and an office in New York, NY.

Our team of industry veterans has advised sell-side and buy-side engagements with over $20+ billion in value for entrepreneurs, family-run businesses, and financial sponsors.

To connect with Tower Partners, visit https://www.towerpartners.com/ or email info@towerpartners.com.

Powered by Rise25 Podcast Production Company

Brian Schmidt is a Vice President at Court Square Capital Partners, a middle-market private equity fund. In his role, Brian is responsible for deal sourcing, growing existing investments, and overseeing the development and implementation of growth strategy. He serves as a board member for Power Digital, Connatix, and Health Union and is a Dynata board observer.

Bill Sommerschield is the Managing Director at Keystone Capital, which invests in high-quality, market-leading businesses. He is responsible for evaluating investments, structuring and negotiating transactions, and managing portfolio companies. Before Keystone Capital, Bill worked in the investment banking divisions of Morgan Stanley and Credit Suisse, where he was involved in M&A and debt and equity financings in the business services, industrial, and education industries.

Chad Scripps is the Managing Partner of Black Lake Capital, a private equity firm that invests in technology and innovation-enabled businesses. With two decades of experience investing in private and public businesses, Chad held prior roles at HIG Capital, AEA Investors, SAC Capital, Fox Point Capital, and McKinsey & Company.

Lee Minkoff is the Managing Director of Renovus Capital, a Philadelphia-area private equity firm focused on lower-middle-market companies in knowledge and talent industries. He serves on Renovus’ Investment Team, where he oversees the firm’s Professional Services vertical. Before joining Renovus, Lee worked at Lovell Minnick Partners, UBS’s financial institutions investment banking group, and J.P. Morgan Asset Management.

Lawrence Shagrin is the Managing Partner at Millpond Equity Partners, a lower-middle-market private equity firm focused on investing in education, training, and outsourced services companies. He has more than 25 years of private equity experience sourcing, executing, and managing growth-oriented investments across business services, education and training, healthcare, and other industries. Before Millpond, Lawrence was a Partner at Brockway Moran & Partners.

Jamie Kennedy, CFA, is the Co-founder and Partner at Griffin’s Wharf Partners, an operationally focused private equity firm that pursues control buyout transactions in the lower-middle-market. He has more than 20 years of experience investing in private equity opportunities, having served as a Managing Director at Landon Capital Partners, the Head of Research at Madava Asset Management, and an investor at Longroad Asset Management.

Thomas Cooperrider is the Principal of Dynamic Core Capital Partners, a private equity firm that partners with industry experts and experienced executives to transform niche market leaders. In his role, he focuses on business development, deal execution, and portfolio company monitoring and support. Thomas also serves as Vice Chairman on the boards of Atomic Data and Level Agency and as a Director on the boards of ToyTec Lifts, CustomDrive, SmartSource, and Ecosystems.

Stuart Coleman is the Managing Partner of Superstep Capital, a private equity firm focused exclusively on digital services companies. Previously, he led M&A and corporate development at public and private companies, including Hero Digital and MDC Partners. Stuart has acquired more than 20 companies at MDC Partners and helped Hero Digital complete four acquisitions, grow significantly, and sell to AEA Investors in 2021.