Fix-and-build private equity in manufacturing with Eric Wiklendt

Episode SummaryHow Speyside Equity buys and improves underperforming manufacturing companies. Brian talks with Eric Wiklendt about his path from Detroit manufacturing consulting to leading and selling a middle-market manufacturer, then joining an operationally focused private equity firm. Eric breaks down Speyside’s “fix and build” approach, why lower middle market companies often have untapped operational upside, and how incentives, politics, and constraints shape real-world decisions. They also dig into the human side of change, including why owners resist outside help and what makes a business easier to buy. Eric closes with what he is watching in the months ahead and how to reach him.Key TakeawaysOperational improvement is often limited in smaller companies because leaders spend most of their time working in the business instead of on it.Misaligned ownership and “underloved” businesses can create stress, under-management, and underperformance that a focused operator-investor can address.In large organizations, incentives and internal politics can drive decisions that look irrational operationally, even when the people involved are capable.Consulting works best when incentives are aligned and recommendations fit the company’s real constraints in people, processes, systems, and capital.Selling a business is emotionally jolting, and owners often see their company through rose-colored glasses while buyers are paid to be professional skeptics.Buyers value repeatable, scalable processes, a strong management team, and diversified customer concentration, even when the business is not perfect.TimelineEarly00:00:00 Eric’s background, Detroit roots, Notre Dame, and early consulting work00:01:00 Moving to Wharton and building operator skills across manufacturing roles00:02:00 Becoming a CEO, selling the business, and joining Speyside Equity00:03:00 What “fix and build” means and how value creation is executedMiddle00:05:00 Why lower middle market companies often have more operational upside00:07:00 Why change gets blocked inside big companies, and what drives resistance00:10:00 Private equity incentives and why shareholder value focus changes behavior00:11:00 Ego, pride, and how improvement efforts can be misheard as criticismLate00:15:00 “Solving problems in a vacuum” and why great strategies fail under constraints00:17:00 A real example of “waste” driven by reporting optics and incentive design00:22:00 Patience, timing, and what it takes for an owner to be ready to sell00:25:00 What makes a business easier to buy, what Speyside avoids, and closing thoughts00:27:00 What Eric is watching next, and where listeners can contact himLinks and ResourcesLinkedIn: https://www.linkedin.com/in/ericwiklendt/Company: http://www.speysideequity.com/