In Episode 6 of the Silver Creek Insights podcast, Jack welcomes Aram Taghavi, an entrepreneur and private equity professional with a unique approach to business. Aram has built his career by focusing on acquisition entrepreneurship; turning "boring businesses" into exciting opportunities. With a background in B2B publishing and a reputation for being one of the "nice guys" in private equity, Aram shares his journey from startup enthusiast to private equity expert, all while navigating the highs and lows of the business world. Here are some of the key takeaways:
1. Acquisition Entrepreneurship: A Hidden Gem for Business Success
Aram began his career in private equity with a 'search fund,' where he looked for companies to buy rather than starting one from the ground up. During the pandemic in 2020, he acquired his first acquisition, a SaaS company, which gave him invaluable experience in identifying and funding firms. He thinks acquisition entrepreneurship is an underappreciated route for people who wish to establish their own business without going through the difficult process of beginning from scratch, despite its challenges.
"Private equity is great because you don't necessarily need talent or capital to succeed—you just need a good deal."
Aram emphasizes that while venture-backed startups require top-tier talent and innovative ideas, private equity is more formulaic. It’s about finding cash-flow-positive businesses and scaling them efficiently, which can be easier than the rollercoaster ride of venture capital.
2. The Value of Professional Sales and Marketing
When Aram acquires a business, his focus is on scaling by improving two key areas: sales and marketing. He’s found that many smaller businesses, despite generating millions in revenue, often lack professional sales teams. This gap presents an opportunity for improvement.
"I come from a background in building sales and marketing teams, so I know that's a lever I can pull on right away."
Whether it’s helping companies develop a more professional sales structure or providing financial advice by installing CFOs and operational leads, Aram and his team transform businesses by giving them the organizational infrastructure they need to thrive.
3. Niceness as an Edge: Building Relationships in Private Equity
In an industry known for its cutthroat nature, Aram takes a different approach—one centered on being kind and building relationships. He believes that being nice and hungry for the deal sets his team apart, which helped them win a competitive auction for a janitorial business in early 2023.
"People want to work with those they like. Niceness is an edge in private equity."
By treating everyone with respect, from the business owners to the bankers advising the deals, Aram has found that forming genuine connections leads to better outcomes. His firm, Iremia Management, named after the Greek word for "calm," reflects his philosophy of staying present and focused, even in high-stress environments.
4. The Power of Focus: Narrowing Your Ambition for Greater Results
Aram talks candidly about the challenges of juggling multiple deals and the importance of focusing on the right opportunities. In private equity, it’s easy to work on deals for months without seeing any results, which is why staying focused and selective is crucial.
"You can spend a year working on two deals and not close either one. That's a zero year, and it’s tough."
He also shares how becoming a father has shifted his perspective on life and work, bringing a new level of focus and purpose.
5. Voracious Living: Loving the Pain for Long-Term Success
Aram’s mantra in life and business is "be voracious" and "love the pain." He believes that embracing the discomfort of difficult tasks is essential for growth and success. This mindset has helped him overcome challenges in his business ventures and personal development.
"If you love the pain and go at it hard, on the other side is salvation and freedom."
Aram concentrates on conquering challenges by remaining composed and tenacious, whether managing several firms or negotiating intricate transactions. His strategy is about enjoying the struggle and pushing through obstacles, whether they be difficult emails or multi-million dollar purchase deals.
Conclusion: Embrace Acquisition Entrepreneurship and Stay Hungry
Aram's journey offers valuable lessons for anyone interested in acquisition entrepreneurship, private equity, or just leveling up in business. In the realm of private equity, he stands out for his emphasis on growing "boring businesses," assembling competent people, and cultivating relationships with compassion. Aram's belief in appreciating the pain and remaining ravenous is an encouragement for business executives and entrepreneurs alike, as he prepares for parenthood and new endeavors.
Want to learn more about the art of acquisition entrepreneurship and how to succeed in private equity? Tune into the full episode of Silver Creek Insights and follow Aram's journey!
Silver Creek Insights provides data-driven strategies and insights to help businesses grow and thrive in today’s competitive landscape.
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