Episode 005: Selling to Private Equity with Jim O’Rourke

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By Tammie Miller, Managing Director and TKO Miller. Discovered by Player FM and our community — copyright is owned by the publisher, not Player FM, and audio is streamed directly from their servers. Hit the Subscribe button to track updates in Player FM, or paste the feed URL into other podcast apps.

In this episode of the podcast, Tammie Miller and Tim Oleszczuk, your hosts, are joined by Jim O’Rourke who is the former president and CEO of A&A Manufacturing. Jim sold to private equity and is sharing in this episode the details about this process, the pros and cons, and how he rolled equity as part of that transaction.

  • [1:28] Jim shares the main aspects of the transaction.
  • [3:18] Jim shares how they encountered a strategic buyer.
  • [4:01] Deciding to take the private equity road
  • [4:45] Jim shares the basics of the structure coming out of the deal.
    • [5:22] Jim explains how his role changed, from prior to after the transaction.
  • [6:10] The deal was finalized in 2007 and in 2008 the economic crisis shook the financing world, Jim shares his experience during those times.
  • [9:10] Jim shares the particularities of his family business entering private equity.
  • [10:51] Jim talks about enjoying the interactions and the pressure created by transitioning to private equity.
  • [17:17] Jim shares why this was a very successful transaction for him.
  • [18:18] Jim extends his advice to anyone considering selling to private equity.
    • [18:35] Go into the process with a really strong management team.
  • [19:00] Jim shares how he communicated to his management team that they were selling to private equity and talks about their reaction.
  • [20:54] Jim talks about how employees were introduced to the change of ownership.
  • [23:00] The process of selling a business is incredibly overwhelming on the management team.
  • [26:43] Jim gives his advice to those interested in co-investing as a previous owner.

If this topic interests you, check out these other resources:

eBook: The Second Bite of the Apple

Blog: “Rolling Equity in a Business Sale”

Blog: “If You Own a Business, You Need to Care About Private Equity”

Blog: “4 Advantages & Disadvantages of Remaining a Shareholder After an Acquisition”

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