The Vast Opportunity of Investing in Sub $5M EBITDA Companies With Mason Myers

Welcome to The Private Equity Podcast! In this episode, we’re diving deep into the world of investments with a focus on sub $5M EBITDA companies. Our guest is Mason Myers, Founder and Managing Partner of Greybull Stewardship. Mason’s expertise lies in navigating and scaling smaller, often overlooked businesses, and he’s here to share valuable insights on how to unlock potential and drive growth in this niche market.

[00:00] Alex Rawlings introduces the podcast and today's focus on investing in sub $5M EBITDA companies with guest Mason Myers.

[00:13] Discussion on Grable Stewardship’s Gravel Strategy, targeting pre-middle market businesses with less than $5M in profit.

[00:24] Alex welcomes Mason Myers, Founder and Managing Partner of Greybull Stewardship, to the podcast.

[00:48] Alex invites listeners to connect on LinkedIn before diving into the conversation with Mason.

[01:13] Mason shares his background from journalism to founding Greybull Stewardship, his experience with startups, acquisitions, and his shift to private equity.

[02:34] Mason highlights common mistakes by private equity firms and portfolio companies, stressing the need to listen to founders and choose intermediaries carefully.

[04:27] Mason explains Greybull Stewardship’s focus on pre-middle market businesses, the firm’s mission, and its commitment to this underserved space.

[06:44] Mason addresses unique risks in sub $5M EBITDA investments and how Greybull manages these risks, focusing on sustainable business models.

[09:08] Mason discusses strategies for scaling businesses post-investment, improving operational fundamentals, and expanding management teams.

[10:12] Mason details Greybull's diligence process and collaboration with management teams to enhance business value.

[12:29] Mason emphasizes the role of operating partners in creating value over financial engineering, noting Greybull's focus on operating experts.

[16:12] Mason advises businesses on increasing value before engaging with private equity, covering accounting practices, revenue predictability, and growth initiatives.

[19:29] Mason shares strategies for maintaining deal flow in a slow market and how Greybull uses referrals and intermediaries to find opportunities.

[20:27] Mason offers tips on selecting the right intermediary and invites a 20-minute brainstorming session to assist business owners.

[21:26] Mason discusses his influences, including Warren Buffett and Charlie Munger, and his interest in biographies and historical figures.

[24:17] Alex concludes the podcast.

You can connect with Mason Myers on LinkedIn by visiting his profile here or you can email Mason at Mason@GreybullStewardship.com 

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.