When it comes to private equity, do your homework

RoofersCoffeeShop Influencer Will Lorenz says that finding the right fit is make or break in private equity. 

Editor's note: The following is the transcript of a live interview with Will Lorenz of General Coatings. You can read the interview below, listen to the podcast or watch the recording.

Lauren White: Hello everyone, I'm Lauren White here for RoofersCoffeeShop.com and we are here for our August RoofersCoffeeShop influencer response with Will Lorenz. Will, it's great to see you.

Will Lorenz: Lauren, thank you again. Always glad to be a part of the the coffee shops and see how we can contribute and also learn lots of things.

Lauren White: Yes, definitely. Well, for the August topic, it is on private equity and industry consolidation. I feel like we've seen a lot of that in the last several years. So what are your thoughts on that and what advice do you have for people in the industry right now?

Will Lorenz: Well, I I think first of all it's gotta be the right decision for you, with regard to what how you're running your business. And many roofers are family run businesses, and they get to a point where their next generation, or the professionals that they have or partners that they have desire to cash out or to separate. And so that puts the circumstance as to what's the best path to to exiting the business. And there's a lot of good, attractive companies out there that have gotten into the private equity space in roofing.

My advice is of course do your homework, choose wisely. You want something that you can then be a part of and successfully transition it because usually they give you some money, but then they give you something to be involved in that organization for a period of time. And then if that business continues to prosper, you get something down the road, or you get the final payments. And of course, you want to have something where that value makes sense, and you get the total that you're looking for the sale of it.

We're a family run company, General Coatings, and our strategy has been to maintain our business and to grow it and invest in it. And we think that's the wisest strategy. But if that's not the direction that works for you, then private equity offers you that opportunity. They are in the marketplace. They are very aggressive, but I would say that sometimes those businesses grow a great deal by becoming a part of private equity because they they bring additional capital. They bring streamlining efficiencies to those businesses, but other times sometimes they they change the culture, they change how you you've wanted your business to operate, your legacy, and maybe those partners aren't exactly the right fit for you. So do your homework, and find the right folks if you're desiring to exit, that can pass on your legacy to another corporation that that can build upon it.

Lauren White: Definitely. I think those are all really key factors to consider for for people looking at private equity and considering consolidating in the future. So thank you so much, Will, for your insights as always.

Will Lorenz: Thank you indeed. Always good to to be a part of it.

Lauren White: Yes. And for those of you who want to learn more from Will, be sure to check out his influencer directory on RoofersCoffeeShop.com and learn more about General Coatings as well with their directory. So thank you again and we will see you next month for our next influencer question.

Will Lorenz: Fantastic, thank you.