Jim Silvestri on his experiences of driving PE-Backed industrial companies to an exit

Introduction to Jim:

Currently the Chief Financial Officer at Wales-Darby, Jim has been in the financial field for more than 30 years. For the majority of his career, Jim has been involved in the fields of manufacturing, construction, and distribution. He has also worked with public, private, and family-owned businesses. 

 

What You Will Learn

Portfolio Companies Acquiring Manufacturing Firms 

Learning About How Manufacturing Works

Difference between PE Backed Businesses and Family-Owned Organizations

Process in the PE Business Process

Drivers for Industrial Businesses

Implementation of ERP Systems

 

Breakdown:

[00:43] Introduction of Jim

[02:01] Mistakes Made by Private Equity Firms

[02:56] Acquiring Manufacturing Companies

[04:14] PE Back Business vs Family-Owned Organizations

[06:00] Learning From PE Back Business Process 

[07:58] Drive Increase for Industrial Business

[10:43] Tips for New ERP Implementations 

[13:12] Likes and Dislikes on the PE Industry

[14:46] Known Knowledge Before Entering the Industry 

[16:04] Reading References of Jim

[17:46] Social Links and Conclusion

 

Understanding the Industry

Jim takes on the topic on how private equity firms can work around companies in the manufacturing and construction industry. It is important to know the industry that you are absorbing and it should not only be based on the general revenues. PE firms must understand the complexity of income and goods allocation that progresses throughout the manufacturing industry. This will enable them to better understand the industry from a financial point of view.

 

Growth In Other Ways

In order to improve the portfolio lineup, PE firms need to have a better understanding of the companies or lineups they have. This will enable them to properly fix their portfolio in terms of growth and sustainability. Growth and development does not simply rely on the sales portion, there are more ways growth can be measured throughout the financial cycles of each company. 

 

Reading Materials 

Atomic Habits by James Clear 

Twelve and a Half by Gary Vaynerchuk

 

 

How to Reach Jim:

Email: jimsilvestri70@gmail.com 

Jim’s Linkedin

 

​​Thank you for tuning in!

To get the newest Private Equity episodes, you can subscribe on iTunes or Spotify here.

Lastly, if you have any feedback on the podcast or want to reach out to Alex with any questions, send an email to alex.rawlings@raw-selection.com.