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Think PE buyers care most about your EBITDA? Think again.
In this episode of CEOs Unscripted, host Jane Gentry sits down with Paul Idziak — PE advisor, former CEO of GV Windpower North America, and field service industry veteran — to pull back the curtain on what private equity firms actually evaluate before writing a check.
Whether you’re planning to sell your business in the next 3–5 years or simply want to build a more valuable company, this episode delivers the unfiltered truth most business brokers won’t tell you.
In This Episode, You’ll Learn:
- Why management team quality often matters more than financials during due diligence
- The real reason client concentration can destroy valuation overnight
- What PE firms mean when they say, “You’re selling the future, not the past”
- Why free cash flow matters just as much as EBITDA — and why founders often overlook it
- The M&A muscle, greenfielding capability, and operational strengths buyers quietly score you on
- Why you should conduct a Quality of Earnings (QoE) study before going to market
- How to vet a PE firm the same way they’re vetting you
Timestamps
- 00:00 — Cold Open: What PE Looks at First (Hint: It’s Not Financials)
- 01:02 — Welcome to CEOs Unscripted
- 02:38 — Paul’s Background: Energy Services, PE Exits & Advising
- 05:22 — Demystifying Private Equity for CEOs
- 06:39 — The #1 Due Diligence Factor: Management Team
- 08:30 — Does It Have to Be the Founder? Why PE Says No
- 09:20 — Leadership Succession & Its Impact on Valuation
- 10:44 — How PE Evaluates Cultural Fit with Management
- 12:54 — “You’re Selling the Future, Not the Past”
- 14:32 — Evaluating Growth Potential: Markets & Talent
- 16:02 — Recruiting, Retention & Training as Valuation Drivers
- 18:49 — Culture KPIs Buyers Actually Track
- 20:22 — Client Concentration: The Deal-Killer Nobody Talks About
- 23:10 — Contracts, Blue-Chip Clients & Recurring Revenue
- 25:33 — Why Profitability Per Client Matters More Than Revenue
- 28:14 — The Hidden Cost of Difficult Customers
- 29:10 — M&A Muscle & Greenfielding: What Excites Buyers
- 30:41 — Technology Stack & ERP Maturity
- 33:21 — Is AI on PE’s Radar Yet?
- 34:10 — Job Costing: The Discipline Most Companies Lack
- 36:23 — Free Cash Flow vs. EBITDA: What Founders Miss
- 38:32 — Pricing Strategy & Protecting Margins
- 41:49 — Accounts Receivable: Why Founders Avoid Collecting
- 43:45 — Full Due Diligence Checklist Recap
- 45:35 — What to Clean Up Before Going to Market
- 46:54 — Why You Should Run a QoE on Yourself First
- 48:11 — What PE Firms Need to See in Your Processes
- 50:55 — Not All PE Firms Are Equal: How to Vet Your Buyer
- 53:47 — Book Recommendation: The Private Equity Playbook by Adam Coffey
- 55:35 — Teaser: Paul Returns to Talk About Life as a PE-Backed CEO Operator
- 56:47 — Jane’s Closing Thoughts
