Well Capitalized

What Is Life Like Under Private Equity Ownership?

How does life at a family owned business change after becoming a private equity portfolio company? In this episode of Well Capitalized, MCM interviews Marc Calcaterra, CEO of Torsion Group Corp., a manufacturer and distributor of garage door parts and accessories that was acquired by MCM Capital Partners in 2016.

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Among other things, Marc discusses:

  • Management’s reasoning for pursuing a transaction. (1:15)
  • Why he chose private equity over other options? (2:13)
  • What was his biggest fear in partnering with a private equity firm? (4:05)
  • Are Marc’s challenges/concerns different 2 1/2 years into the transaction? (5:42)
  • What has been the most dramatic change after the acquisition? (6:42)
  • What are the reporting requirements like under private equity ownership? (7:34)
  • What is the benefit of having a sounding board to make strategic decisions. (9:08)
  • Why did he reinvest/retain equity in the business when he no longer had “control”? (10:42)
  • What are the advantages and disadvantages of partnering with a private equity firm? (11:55)
  • What advice would you give to a business owner looking to sell their business? (13:32)
  • What is the biggest difference between being family owned and private equity owned? (14:54)