Shifting from Founder-Led to Data-Driven Decision Making in Private Equity with Jeff Wigle

Welcome to The Private Equity Podcast, by Raw Selection. Today’s guest is Jeff Wigle, Managing Director at Banyan Capital Partners, a lower-to-middle market private equity firm based in Canada. Jeff shares insights on transitioning portfolio companies from founder-led to data-driven decision-making, leveraging technology, and managing cultural change during these shifts.

Breakdown:

[00:00] Jeff Wigle discusses his background, Banyan Capital Partners, and his experience transitioning portfolio companies to data-driven decision-making

[00:29] Jeff’s background from accountant at Ernst & Young to private equity leader, including serving as CEO of a portfolio company at age 31

[02:26] Building an evergreen private equity model with the importance of long-term holds and avoiding rushed investment theses

[04:22] Common private equity mistakes including rushing transformations, breaking culture, and short-sighted strategies

[05:48] Banyan’s approach focusing on long-term value creation, rebuilding foundations, and avoiding premature integrations or expansions

[07:31] Lessons from being a CEO with the critical importance of having the right people in the right roles

[08:52] Characteristics of top performers including clarity, consistency, transparency, and alignment with investor and business goals

[10:16] Transitioning to data-driven decision-making by addressing founder-led systems and building scalable processes for growth

[11:43] Challenges of upgrading systems with balancing inward focus during upgrades with market opportunities

[12:42] Investing in systems and data by upgrading technology to generate actionable insights and improve decision-making

[14:09] Starting with manual processes by using limited data to identify profit drivers and inefficiencies before implementing systems

[16:05] Managing resistance to change by evolving culture carefully with executive buy-in to avoid breaking businesses

[17:41] Leveraging IT consultants and internal resources with strategies for implementing and managing technology upgrades

[20:59] Early steps with artificial intelligence including using AI for coding fixes, dynamic pricing, and operational efficiencies

[23:22] AI and dynamic pricing with AI to manage large customer bases and product catalogs efficiently

[24:50] Staying competitive with AI and how larger businesses lead adoption, but smaller firms must act to avoid falling behind

[27:44] AI at the private equity level with AI for research and data compilation, but still validating results manually

[29:10] Recommended reading Scaling Up by Vern Harnish, Grit, Good to Great, The Five Dysfunctions of a Team, and Switch

[31:00] Podcast recommendations Business Breakdowns, In Good Company, and Michael Lewis’s podcast

[32:26] Connect with Jeff via the Banyan Capital Partners website for contact details

[32:55] Closing thoughts with Alex Rawlings thanking Jeff for sharing his insights on data-driven decision-making and cultural change in private equity

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