These days, there’s a whole lot of talk about “slop.”
You’ve got written slop:
You’ve got video slop:
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Heck, you’ve even got slop bowls:
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But there’s also another kind of pervasive slop. A variety that small business folks know all too well…
You’ve likely seen or experienced this slop, even if you couldn’t put your finger on it.
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Over the past couple of decades, private equity (and its tactics) have quietly seeped into almost every facet of daily American life:
…Even local eateries your parents used to love.
In 2000, private equity firms managed about 4% of total U.S. corporate equity. By 2021, the number had increased to around 20%.
Somewhere along the way, it feels like businesses have all started dressing the same, talking the same, and tasting the same.
You could say PE has been the business equivalent of our “adult in the room”, injecting systems, capital, and discipline into “boring” or inefficient industries (all generally good, reasonable things). But the unsurprising result: more scale, less soul.
Kinda like this… (WARNING: this clip will hit you hard. Click to watch.):
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PE offers rewarding exit ramps for retiring owners or those who want out, delivering business continuity, growth, and jobs while unlocking shareholder value.
In 2024:
But we may have paid the price with PE slop.
Is anyone really at fault here?
Owners and investors are doing exactly what anyone logically should do: create value, operate efficiently, and deliver results for yourself, your family, and your investors.
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Remember, private equity’s job is to generate returns, not roots.
Its mandate isn’t to protect a family name or nurture true community ties. It’s to turn money into more money, ideally within a 3-7 year window.
PE firms raise funds from institutional investors such as pensions, endowments, and family offices, then deploy them into private companies.
That’s the job. Fiduciaries, not families.
Most aren’t chasing maximum IRR over a 3-7 year period. They’re chasing something more “meaningful”: a life of respectable income, purpose, and independence.
Many want to own their time, earn well (yes, maybe exceptionally well down the road), and build something worth handing to the kids.
See the difference? Both sides serve a real purpose. The challenge, and the opportunity, is in building a system where returns and roots can coexist…
This isn’t how everyone wants it to be, and there are plenty of reasons it doesn’t have to only be this way.
We can build better incentives for ownership that’s local, family-centered, and legacy-driven. Ownership that keeps pride, people, employees, and community in the equation.
A lot of owners actually want that, too.
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For the right deal, plenty would rather hand their business to:
…Rather than to someone who just sees the business as a spreadsheet. And the truth is, those quality buyers exist. A bunch of YOU reading this likely fit the bill.
Many owners aren’t financially or psychologically ready to sell. Their books are a mess. Even when the numbers make sense, the mentality doesn’t.
Many owners are their business. Selling feels like dying. So they hold on, and when they finally let go, it’s often too late.
On top of this, there are thousands of small companies that won’t make sense for private equity. But these may be challenging yet worthwhile ownership opportunities for driven individuals.
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Our belief: if we make it easier for individuals, employees, and local investors to step in, we don’t just preserve jobs and communities, we create new paths to ownership that keep the slop out of our Main Streets.
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By the way, “easier” doesn’t mean “easy.” None of this is easy. Most people aren’t built for the pressure or risk of ownership. But those who are can rewrite what this country LITERALLY looks and feels like.
Technology and AI are changing what work means. Many traditional career ladders are getting shorter. This guy is likely being way too dramatic, but he may be directionally correct:
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For those who want more control over their time and future, buying or building a business is becoming a practical path, not just an aspirational one.
More ownership won’t solve everything.
But it may be enough to keep our Main Streets from turning into giant bowls of slop.
You should come to Main Street Over Wall Street, the event we’re hosting in Austin from Nov. 2nd-4th.
It’s for investors, owners, business buyers, and operators who want to push back against the “slop” and own enduring local businesses.
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For 3 days, some of the best people in small business will be under one roof doing what they do best: deals. Plus, you’ll hit morning workouts with other builders, and swap ideas over drinks. It’s equal parts business and energy.
Will we see you there? Secure your spot and check out the speakers, schedule, and more here:
📊 Get the Main Street Minute, the only newsletter that makes you a smarter business buyer every time you open it.
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The information contained here is educational, may not be typical, and does not guarantee returns. Background, education, effort, and application will affect your experience and the profitability of any business. Individual results may vary.
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