In this 35‑minute episode, the hosts break down the five most common pitfalls that founders face when they bring a private‑equity (PE) firm aboard. From overlooked deal structures to the emotional reality of an eventual exit, the conversation is packed with hard‑won lessons, humorous anecdotes, and actionable advice for entrepreneurs who are looking to or already in a PE partnership.

“A founder’s job is to build a company. A PE partner’s job is to unlock value—so you need to know the difference.” – Ed Barton

Navigating private equity is less about groundbreaking innovation and more about precision, preparation, and clarity around expectations. The best strategies collaborate by anticipating disruption, understanding the deal, and being honest with themselves and their partners.

Don’t start with a belief you’ve navigated PE. Question it. Add these notes to your cheat sheet.

🔍 Key Takeaways
1️⃣ Understanding Deal Structures

• Founders often underestimate the importance of knowing the deal structure.
• Failing to understand exit strategies can trap founders, leading to economic uncertainty post-sale.
• Financial modeling accuracy is critical; overly optimistic projections can hurt valuations and future compensation.

2️⃣ Shifting from Founder to Employee

• After a PE deal, founders must shift from CEO to employee and accept decision-making authority shifts.
• Leadership transitions can strain relationships if not communicated clearly.

3️⃣ The Trapped Money Trap

• Founders may end up with trapped equity due to unfavorable deal terms or rollover options.
• Negotiating clear payout structures upfront is non-negotiable to maximize returns.

4️⃣ Ignoring PE’s Professional Rigor

• PE firms demand granular financial governance (KPIs, scenario analysis, forecasts).
• Founders who resist these changes risk losing credibility and control.

5️⃣ Lack of Exit Strategy Awareness

• Understanding the exit timeline (ranging from 5-10 years) helps founders plan post-sale.
• Silicon Valley’s or similar PE firms do not mate for life—expect transitions.

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🎙 Podcast – Strategies, PE 101 & witty banter

📚 Book – On‑Ramp to Exit, full deal life cycle

🛠 Resources – Free templates, guides, tools

🔗 LinkedIn – Follow us for fresh PE insights

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Who Are We?

Three insiders. One mic. All things private equity — explained. Hi 👋 We’re Ed, Rory, and Emily — a CEO, a CFO, and a Chief of Staff — here to demystify the world of private equity. Between us, we’ve sat in the founder’s chair, run PE‑backed companies, and worked on the deal side, so we know the wins, the pitfalls, and the jargon (and we’ll explain it).

Through the Private Equity Experience Podcast, our book On‑Ramp to Exit, and a library of free tools and templates, we share real‑world stories, practical strategies, and insider insights to help you navigate every stage of the PE journey — whether you’re leading a portfolio company, joining a deal team, considering PE, or just PE‑curious.

🔗Connect with Ed

🔗Connect with Emily

🔗Connect with Rory

Artificial Intelligence (AI) is no longer a futuristic concept—it’s actively reshaping the landscape of Private Equity (PE) right now. In this can’t-miss episode of The Private Equity Experience, hosts Emily Sander, Ed Barton, and Rory Liebhart dive deep into how AI is creating immediate, tangible value in the PE ecosystem.

The discussion kicks off with a rapid-fire round of questions about trusting AI in our personal lives, but quickly moves to how AI is transforming core business functions.

In this episode, you will learn:

Operational Engineering with AI: Ed Barton shares the insight that AI is taking the ability to operationally engineer a business to another level. Learn why PE firms should hunt for "people-heavy" businesses run by "Luddites" where AI can be applied quickly for massive operational leverage and a faster jump in valuation.

Diligence and Cost Savings: Rory Liebhart shares his personal experience saving "tens of thousands of dollars" on professional services and legal fees by utilizing basic AI tools like ChatGPT.

The New PE Investment Thesis: Where are the smartest investments happening? The hosts break down the "picks and shovels" opportunities—investing in the infrastructure that supports AI's growth, such as data centers, power generation, and internet service providers, as a lower-risk investment strategy compared to direct AI companies.

The Future of Human Reliability: Ed offers a fascinating prediction that AI's reliability will soon surpass human instinct, transforming how businesses must adapt in the next decade.

Whether you are a PE investor, a portfolio company executive, or a founder considering a sale, this discussion provides actionable insights on how to leverage the AI revolution for maximum value creation.

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🎙 Podcast – Strategies, PE 101 & witty banter

📚 Book – On‑Ramp to Exit, full deal life cycle

🛠 Resources – Free templates, guides, tools

🔗 LinkedIn – Follow us for fresh PE insights

================================

Who Are We?

Three insiders. One mic. All things private equity — explained. Hi 👋 We’re Ed, Rory, and Emily — a CEO, a CFO, and a Chief of Staff — here to demystify the world of private equity. Between us, we’ve sat in the founder’s chair, run PE‑backed companies, and worked on the deal side, so we know the wins, the pitfalls, and the jargon (and we’ll explain it).

Through the Private Equity Experience Podcast, our book On‑Ramp to Exit, and a library of free tools and templates, we share real‑world stories, practical strategies, and insider insights to help you navigate every stage of the PE journey — whether you’re leading a portfolio company, joining a deal team, considering PE, or just PE‑curious.

🔗Connect with Ed

🔗Connect with Emily

🔗Connect with Rory

In this episode, hosts Emily Sander, Ed Barton, and Rory Liebhart dive deep into one of the most powerful tools for leadership teams and private equity-backed companies: The Flash Report.

What You’ll Learn:

• What a Flash Report is and why it’s a game-changer for leadership transparency and decision-making.
• How to structure a Flash Report using frameworks like Balanced Scorecard, OKRs, or EOS.
• Why Flash Reports improve communication with boards, investors, and internal teams.
• Real-world examples of key metrics and narrative sections that make Flash Reports effective.
• How to avoid common pitfalls—like overcomplication or inconsistent data—when implementing a Flash Report.
• The role of a Chief of Staff in driving and maintaining a Flash Report process.

Key Topics Discussed:

• Emily kicks off with a fun trivia round, leading into the core topic: the Flash Report. Ed provides a high-level definition and shares how the Flash Report helped align teams and improve communication with private equity partners.
• The hosts discuss how Flash Reports foster transparency, save time in meetings, align teams with strategic goals, and help leaders make data-driven decisions quickly.
• Ed explains how the Balanced Scorecard methodology informed their Flash Report structure, emphasizing the importance of connecting metrics to strategic initiatives.
• Rory and Emily highlight how Flash Reports can be tailored to any industry—whether SaaS, lending, manufacturing, or services—by focusing on the metrics that truly drive the business.
• The team shares a sanitized example Flash Report, breaking down each section:

1. Quantitative Metrics: KPIs across four perspectives (Learning & Development, Internal Process, Customer, Financial).
2. Qualitative Updates: Brief narratives from department leaders.
3. Strategic Initiative Updates: Quick status reports on key projects.

• The hosts wrap up with actionable advice:

1. Start simple—don’t overcomplicate.
2. Ensure data accuracy and consistency.
3. Use the Flash Report to tell a story, not just recite numbers.
4. Leverage the Chief of Staff or a cross-functional leader to maintain the process.

Links Mentioned:
Flash Report Template

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🎙 Podcast – Strategies, PE 101 & witty banter

📚 Book – On‑Ramp to Exit, full deal life cycle

🛠 Resources – Free templates, guides, tools

🔗 LinkedIn – Follow us for fresh PE insights

================================

Who Are We?

Three insiders. One mic. All things private equity — explained. Hi 👋 We’re Ed, Rory, and Emily — a CEO, a CFO, and a Chief of Staff — here to demystify the world of private equity. Between us, we’ve sat in the founder’s chair, run PE‑backed companies, and worked on the deal side, so we know the wins, the pitfalls, and the jargon (and we’ll explain it).

Through the Private Equity Experience Podcast, our book On‑Ramp to Exit, and a library of free tools and templates, we share real‑world stories, practical strategies, and insider insights to help you navigate every stage of the PE journey — whether you’re leading a portfolio company, joining a deal team, considering PE, or just PE‑curious.

🔗Connect with Ed

🔗Connect with Emily

🔗Connect with Rory