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Accelerated Wealth Creation: Breaking Through the Ceiling

Written By: Gerald O’Dwyer IIThe PE Guru — Blackmore Partners, Inc | December 12th, 2024

  • Faith: Believing in the process and your ability to succeed, even when the path is uncertain.
  • Many executives in traditional roles feel stuck beneath a career ceiling, constrained by compensation packages that reward short-term results but offer little potential for long-term wealth creation. Private equity (PE) presents a different path—a path where equity-rich opportunities enable accelerated wealth creation. By stepping into PE-backed roles, executives can multiply their earnings through equity, EBITDA bonuses, and capital gains tax benefits.

As Kobe Bryant said, “Great things come from hard work and perseverance. No excuses.” This article will highlight how BlackmoreConnects provides the playbook to achieve this future, emphasizing why executives who attempt a DIY approach are often disingenuous about their commitment. Achieving this level of success requires experiences and knowledge that cannot be built in isolation.

Why Private Equity? The Numbers Speak for Themselves

Let’s compare compensation in traditional corporate roles versus PE-backed roles for companies with revenues of $50M to $200M.

Traditional Corporate Compensation

Private Equity Compensation

Example: Manufacturing Industry

This is 10x more wealth creation, with equity gains taxed at favorable capital gains rates.

DIY vs. BlackmoreConnects: The Real Cost of Doing It Yourself

Michael Jordan famously said, “Some people want it to happen, some wish it would happen, others make it happen.” Let’s examine why BlackmoreConnects is the essential partner for executives serious about making their PE journey a reality.

The DIY Approach

BlackmoreConnects Approach

BlackmoreConnects provides a structured, repeatable process that accelerates your progress:

Key Cost Comparison:

How BlackmoreConnects Enables Your PE Future

To paraphrase Kobe Bryant, “The moment you give up is the moment you let someone else win.” BlackmoreConnects ensures you stay in the game, providing the features, functions, and benefits that make your PE future possible.

Features

Functions

Benefits

The Mindset You Need for PE Success

Achieving this future requires more than just a desire for wealth. It demands:

Persistence: Overcoming setbacks and staying committed to the journey.

    • Base Salary: Fixed annual income.
    • Bonus: Tied to personal and company KPIs.
    • Benefits: Standard (e.g., health insurance, retirement contributions).
    • Base Salary: Comparable to traditional corporate roles.
    • EBITDA Bonuses: Significant upside tied to earnings growth.
    • Equity Participation: 5% equity for CEOs, often treated as long-term capital gains.
    • Exit Upside: Substantial wealth creation at exit (typically 3-7 years).
    • Traditional CEO (100M Revenue, 15M EBITDA):
      Total Compensation = $600K (Base + Bonus)
    • PE-Backed CEO (Same Company):
      Total Compensation (Salary + EBITDA Bonuses + Equity at Exit) = $6.5M
  • Time Commitment:
        • Researching industries, PE firms, and deal theses can take years without guidance.
        • Building credibility and relationships with PE firms requires significant trial and error.
  • Knowledge Gaps:
        • DIY executives often lack the insights needed to frame their backgrounds in PE-relevant language or develop compelling deal theses.
        • Learning industry metrics, financial modeling, and the nuances of PE-backed businesses requires years of experience.
  • Networking:
        • Without a structured network, it’s nearly impossible to gain access to PE firms and key decision-makers. Executives often waste time connecting with the wrong people.
  • Cost of Missed Opportunities:
      • The opportunity cost of not being in a PE role can exceed millions over time, especially when equity is factored in.
    1. Workshops and Mastermind Groups:
        • Develop a deep understanding of PE fundamentals and collaborate with peers to refine your strategy.
  • Deal Thesis Development:
        • Learn to create a compelling investment thesis that aligns with PE priorities.
  • Network Access:
        • Direct connections with PE firms, brokers, and advisors. BlackmoreConnects conferences provide instant access to decision-makers you’d otherwise struggle to meet.
  • Tools and Resources:
        • Leverage platforms like PitchBook and Cyndx to analyze industries, source deals, and track trends.
  • Ongoing Mentorship:
      • Personalized feedback from experts who’ve succeeded in the PE world.
    • DIY Approach: Hundreds of hours per month, over several years, with no guarantee of success.
    • BlackmoreConnects: A structured, time-efficient process with measurable outcomes, delivering 10x-20x ROI in equity value.
    • Comprehensive Workshops: Deep dives into PE fundamentals, deal sourcing, and value creation.
    • Mastermind Groups: Peer collaboration to share insights and refine strategies.
    • Access to Tools: PitchBook, Cyndx, and Syndex provide the data needed to navigate the PE landscape.
    • Networking Opportunities: Direct access to PE firms, advisors, and intermediaries.
    • Deal Sourcing: Learn how to find high-potential targets and evaluate risks effectively.
    • Playbook Development: Create a roadmap for scaling businesses and driving exit value.
    • Networking Mastery: Build relationships with PE decision-makers and stakeholders.
    • Accelerated Wealth Creation: Equity and EBITDA bonuses that far exceed traditional compensation.
    • Time Savings: Skip the years of trial and error with a proven process.
    • Credibility: Learn to frame your background in a way that PE firms respect.
    • Confidence: Gain the skills and knowledge to navigate the complexities of PE-backed roles.
    • Desire: The willingness to aim high and pursue equity-rich opportunities.

As Jordan said, “I’ve failed over and over and over again in my life. And that is why I succeed.” Success in PE requires embracing challenges, learning from failures, and continually improving.

Conclusion: Are You Ready to Break Through the Ceiling?

Private equity is not for the faint of heart, but the rewards are transformational. For those who commit to the process, the combination of salary, EBITDA bonuses, and equity offers life-changing wealth creation. With BlackmoreConnects, you’ll gain the tools, knowledge, and network to make it happen.

If you’re still considering a DIY approach, ask yourself: Are you truly committed to this future? Because the time and experience required to succeed on your own make it nearly impossible to achieve the same results.

Let BlackmoreConnects be your partner in breaking through the ceiling. The future you want is within reach—if you’re ready to earn it.