EPISODE · Apr 29, 2026 · 36 MIN
How Private Equity Actually Values Your Business and Team | Scott Estill (#56)
from Exit Algorithms · host Peter Vera
Do you own a transportation or 3PL business doing $3M or more in revenue? Visit www.bizexitgrow.com to find out how we can help you grow, scale, and exit at maximum value.Private equity valuation, the M&A failure rate, independent board directors, and why retaining equity in your business after a sale is the smartest financial move you can make. Scott Estill, Managing Partner at Lancor, former investment banker, and M&A Advisor's 40 Under 40 in North America, joins Exit Algorithms to break down how PE firms look at executive talent, integration, and deal structure.Scott spent 17 years as an investment banker before realizing that life's answers are not found in an Excel model. He built Lancor to sit at the intersection of private equity, M&A, and executive talent, working with firms like Blackstone, Bain, and Apax to place CEOs, board members, and operating partners.We cover:– Why two identical companies can have wildly different returns after an acquisition, and why the answer is always the management team– Why the traditional executive search model is broken and how Lancor's proactive approach lets executives co-invest and join boards without leaving their current jobs– How small business owners can use independent board directors as an inexpensive hack to get high-level operational advice before an exit– Why the Chief Transformation Officer role is not just for failing companies, but for scaling successful ones– Why two-thirds of M&A transactions actually destroy value and how integration is usually the culprit– The real reason PE firms get nervous when a founder wants to sell 100% of their equity for cash at close– How selling 60% of your business and rolling 40% into the new PE-backed entity can make you 3 to 4 times more money on the second bite of the apple– How the rapid pace of AI adoption is forcing PE firms to hire Heads of AI as operating partners to deploy tech across their portfolios– Scott's practical tip: do not sell your business in an echo chamber. Ask questions, triangulate advice, and build a team of uninterested third parties to guide you.Connect with Scott at [email protected] to grow and plan your exit? Visit www.BizExitGrow.com.Related episodes:– Ep. 55: Scale to $100M with 29 Employees Using EOS with Eliot Vancil– Ep. 54: AI Transformation and the Exponential Divide with Nikki Barua00:00 Intro: Meet Scott Estill, Managing Partner at Lancor01:01 From 17 years in investment banking to building Lancor02:15 Why the traditional executive search model has bad math04:00 How Lancor introduces executives to PE firms proactively06:57 Why you need independent board directors before you exit09:30 How to find the right tuck-in acquisitions for your business13:11 Why 66% of M&A transactions destroy value and the integration J-curve16:08 Why 95% of PE deals do not close and how the process hurts your business18:43 The biggest deal killers: customer concentration and mismanaged expectations21:37 Deal structure: why rolling equity makes you more money than an all-cash exit24:30 Using non-dilutive debt to grow before bringing in private equity26:51 How AI is changing private equity and why you need an AI operating partner32:11 Why the speed of AI is scarier than the dot-com bubble34:30 Scott's tip: triangulate advice and ask everyone you know for help#ExitAlgorithms #PrivateEquity #MergersAndAcquisitions #BusinessExit #ExecutiveSearch #BoardOfDirectors #ScaleSmarter #SellStronger #Lancor
What this episode covers
Do you own a transportation or 3PL business doing $3M or more in revenue? Visit www.bizexitgrow.com to find out how we can help you grow, scale, and exit at maximum value.Private equity valuation, the M&A failure rate, independent board directors, and why retaining equity in your business after a sale is the smartest financial move you can make. Scott Estill, Managing Partner at Lancor, former investment banker, and M&A Advisor's 40 Under 40 in North America, joins Exit Algorithms to break down how PE firms look at executive talent, integration, and deal structure.Scott spent 17 years as an investment banker before realizing that life's answers are not found in an Excel model. He built Lancor to sit at the intersection of private equity, M&A, and executive talent, working with firms like Blackstone, Bain, and Apax to place CEOs, board members, and operating partners.We cover:– Why two identical companies can have wildly different returns after an acquisition, and why the answer is always the management team– Why the traditional executive search model is broken and how Lancor's proactive approach lets executives co-invest and join boards without leaving their current jobs– How small business owners can use independent board directors as an inexpensive hack to get high-level operational advice before an exit– Why the Chief Transformation Officer role is not just for failing companies, but for scaling successful ones– Why two-thirds of M&A transactions actually destroy value and how integration is usually the culprit– The real reason PE firms get nervous when a founder wants to sell 100% of their equity for cash at close– How selling 60% of your business and rolling 40% into the new PE-backed entity can make you 3 to 4 times more money on the second bite of the apple– How the rapid pace of AI adoption is forcing PE firms to hire Heads of AI as operating partners to deploy tech across their portfolios– Scott's practical tip: do not sell your business in an echo chamber. Ask questions, triangulate advice, and build a team of uninterested third parties to guide you.Connect with Scott at [email protected] to grow and plan your exit? Visit www.BizExitGrow.com.Related episodes:– Ep. 55: Scale to $100M with 29 Employees Using EOS with Eliot Vancil– Ep. 54: AI Transformation and the Exponential Divide with Nikki Barua00:00 Intro: Meet Scott Estill, Managing Partner at Lancor01:01 From 17 years in investment banking to building Lancor02:15 Why the traditional executive search model has bad math04:00 How Lancor introduces executives to PE firms proactively06:57 Why you need independent board directors before you exit09:30 How to find the right tuck-in acquisitions for your business13:11 Why 66% of M&A transactions destroy value and the integration J-curve16:08 Why 95% of PE deals do not close and how the process hurts your business18:43 The biggest deal killers: customer concentration and mismanaged expectations21:37 Deal structure: why rolling equity makes you more money than an all-cash exit24:30 Using non-dilutive debt to grow before bringing in private equity26:51 How AI is changing private equity and why you need an AI operating partner32:11 Why the speed of AI is scarier than the dot-com bubble34:30 Scott's tip: triangulate advice and ask everyone you know for help#ExitAlgorithms #PrivateEquity #MergersAndAcquisitions #BusinessExit #ExecutiveSearch #BoardOfDirectors #ScaleSmarter #SellStronger #Lancor
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How Private Equity Actually Values Your Business and Team | Scott Estill (#56)
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