When interest rates were low, private equity firms could buy cheap, add debt, and count on multiple expansion to generate returns. That model is gone.
On this week’s episode of Built to Sell Radio, John interviews Lee McCabe, a former Meta and Alibaba executive who moved into private equity and now advises PE firms on how to create value in today’s market.
McCabe argues the firms that win will act like operators, not bankers. For business owners planning to sell, that shift changes how you should think about private equity as a buyer.
You’ll learn how to:
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Spot why the “buy at 8x, sell at 12x” model no longer works
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Understand why PE firms are shifting from deploying capital to deploying capabilities
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See how sector specialists like Vista and Toma Bravo add value from day one
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Learn why building a tech stack is no longer optional—it’s table stakes
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Evaluate when to take the higher PE offer versus a lower, cleaner deal
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Ask the diligence questions that reveal whether a PE buyer will be a real partner—or just a quarterly spreadsheet reviewer
McCabe has sat on both sides of the table. His blunt take: what worked for the last 20 years won’t work for the next 20.
Quote of the Week
The smartest founders don’t say they’re in the roofing or HVAC business — they say they’re in the sales and marketing business. They understand it’s all about lead generation and building a digital engine to drive profitable growth.
Deals
Clyde Industries, a 100-year-old Atlanta-based manufacturer of boiler efficiency and cleaning systems for the energy, pulp and paper, and general industrial markets, has been acquired by Kadant Inc. (NYSE: KAI) for $175 million in cash, representing roughly 1.9x revenue based on FY2025 sales of $92 million. Clyde, which employs approximately 400 people and operates in six countries, develops engineered technologies that help industrial customers enhance performance, reduce operating costs, and achieve sustainability goals.
