The Private Equity Podcast, by Raw Selection

2 PE-backed Exits in the Industrial Services Space with CEO Chad Kalland

Alex Rawlings

In this episode of the Private Equity Podcast, host Alex Rawlings sits down with Chad Kalland, an experienced CEO in the industrial services sector with multiple private equity-backed exits under his belt. Chad shares his insights on navigating cultural changes, integrating acquisitions, and driving growth in a private equity-backed environment. He also dives into key lessons learned from his successful exits, how to keep teams engaged during times of rapid change, and the importance of choosing the right private equity partner.

[00:00]
Introduction of Chad Kalland.

[00:12] Importance of growing as a platform company with potential runway.

[00:41] Chad’s experience with private equity-backed exits and acquisitions.

[01:46] Mistakes private equity firms make by implementing changes too quickly.

[02:16] Understanding business strengths before making changes.

[02:43] Evaluating talent and their unique skills in an organization.

[03:12] Transitioning from founder-owned businesses to private equity-backed environments.

[03:42] Evaluating a company’s culture before acquisition to ease integration.

[04:11] Incorporating the acquired company’s strengths into the platform.

[04:39] Fostering a merger mindset instead of a takeover during acquisitions.

[05:08] Injecting private equity-backed speed into founder-owned businesses.

[05:38] Bringing acquired leadership into the fold to integrate with the platform.

[06:07] Key lessons learned in integrating companies, especially service lines.

[07:04] Missteps by not integrating acquired companies quickly enough.

[08:02] Adding service lines to increase market share.

[08:30] Ensuring smooth service line integration for long-term growth.

[09:28] Maintaining employee engagement during changes and new processes.

[09:57] Motivating technicians and engineers during transitions.

[10:27] Developing employees and offering leadership opportunities to improve retention.

[11:27] Strategies for retaining employees in a labor-intensive industry.

[11:53] Keeping new hires engaged and committed during the first 90 days.

[12:23] Onboarding and training to improve retention.

[12:52] Lessons from two successful private equity-backed exits.

[13:22] Adapting to private equity decision-making processes with new stakeholders.

[13:51] Finding the right private equity partner for growth.

[14:20] Evaluating private equity partners beyond the highest offer.

[14:49] Choosing between remaining a platform or joining a strategic acquirer.

[15:17] Benefits of staying on as the platform versus integrating into a larger organization.

[16:16] Focusing on high-margin services for profitability.

[17:15] Adding organic growth to acquired companies for value creation.

[18:09] Understanding employee motivation as a leader.

[19:35] Other leadership podcasts and books, like Simon Sinek’s work.

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Thank you for tuning in!

You can connect with Chad Kalland on LinkedIn by visiting his profile here.

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Lastly, if you have any feedback on the podcast or want to reach out to Alex with any questions, send an email to alex.rawlings@raw-selection.com.