Full Interview: 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. 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)
• 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)
MCM Capital Partners is a Cleveland, Ohio based lower middle market private equity firm focused on partnering with niche manufacturers and value added distributors generating over $10 million in revenues and between $2-$8 million in EBITDA. We aim to drive value creation and top line growth at our portfolio companies through deep industry experience, operational expertise and business development support.
www.mcmcapital.com

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