Unlocking Success – How PE-Owned Firms Shine in the $3M-$15M EBITDA Sweet Spot

Written By: Gerald O’Dwyer the PE Guru

Private Equity (PE) ownership in the middle market has grown in prominence, and it has become an avenue of considerable financial and professional opportunity. Companies that fall within the $3M – $15M EBITDA range, when under PE ownership, have shown a notable differential in compensation structure. Let’s delve deeper to understand how PE-owned companies outshine in salary, bonus, and equity compensation, and how BlackmoreConnects bridges the gap for executives looking to tap into these opportunities. 

Comparison: To understand the compensation landscape, we compared PE-owned companies in the specified EBITDA range to their non-PE counterparts. 

Salary: On average, executives in PE-owned companies within the $3M – $15M EBITDA range witnessed a 17% increase in base salary compared to non-PE-owned companies. 

Bonus: PE-owned companies are structured to be performance-oriented. Executives, therefore, benefit from attractive bonus structures that are both aggressive and rewarding. Our data indicated a 25% higher bonus potential in PE-owned entities. 

Equity Compensation: One of the defining differences was the equity compensation component. PE ownership often aligns executive compensation with company performance. Equity components in such companies were on average 30% higher than in non-PE-owned firms, providing a long-term wealth creation opportunity. 

The BlackmoreConnects Advantage: The dynamism of the PE landscape requires constant adaptation and up-to-date market intelligence. BlackmoreConnects, through its association with Blackmore Partners, Inc., has formulated a playbook in collaboration with leading PE entities. This playbook provides unparalleled insights and strategies to navigate the PE realm. 

Key to the effectiveness of this playbook is Gerald O’Dwyer’s relentless pursuit of market insights. Attending 20+ ACG conferences annually, O’Dwyer engages with 30-60 PE firms, ensuring the playbook remains fresh, relevant, and invaluable. 

The Message: In an era where inflationary pressures challenge traditional roles, transitioning to a career as a PE executive may no longer be a mere choice but a necessity for those seeking significant financial growth. The roadmap, as laid out by BlackmoreConnects and ACG, emphasizes the importance of building genuine relationships with PE firms and owners in your field.  

The rationale is simple yet potent. PE ownership offers lucrative compensation structures that are hard to rival in traditional setups. Yet, this isn’t just about monetary advantages. It’s about equipping oneself with the networking and knowledge crucial to competing as a PE executive. 

Conclusion 

It’s not merely about understanding the PE landscape; it’s about taking action. BlackmoreConnects, with its well-defined roadmap and wealth of insights, presents a compelling case for executives considering a transition. The results are clear – improved compensation, enhanced professional growth, and a deeper understanding of the PE world. The question remains, are you ready to embark on this journey?