Welcome to another episode of the Private Equity Podcast. Today, I’m joined by Scott Cook, an experienced Chief HR Officer with over 100 add-on acquisitions under his belt. We dig into what really drives successful integration—nailing culture, managing change, aligning roles, and avoiding the classic post-acquisition mistakes. If you want a no-nonsense guide to people, process, and performance in PE-backed services businesses, this episode is a must-listen.
[00:00] Over 100+ add-on acquisitions and integrations, with a focus on commercial and residential services.
[00:29] Private equity mistake: solving adaptive people problems with technical solutions.
[01:51] Example: pay plan integration fails without addressing pride, fear, and control among legacy staff.
[03:49] Change takes time, but skipping the adaptive side slows everything down.
[04:45] “Intervention without diagnosis is malpractice.”
[05:12] Change process: Transparency (what we know/don’t know), Humility (not always right), Authenticity (real conversations).
[07:38] Run changes in parallel to prove success before full implementation.
[08:33] Adaptive resistance often comes from fear of loss, not logic
[09:30] Key issue isn’t just communication—it’s the resistance behind it.
[10:55] Missed clarity of roles and vision derails integration.
[12:22] Diligence mistake: confusing deal confirmation with actual diligence.
[13:21] Integration failures often come from ignoring cultural misalignment.
[14:47] Early lesson: distinguish between necessary and unnecessary endings—prune what’s dying or holding growth back.
[17:08] Win trust early by changing non-critical items that don’t affect frontline staff or customers.
[19:30] Founders often don’t work out post-acquisition—PE firms struggle to make them fit.
[20:34] Sellers always experience some remorse—plan for it during diligence.
[22:00] Ask: “What does ending well look like for you?” Define success before they exit.
[24:23] CFOs and CEOs shouldn’t be in the weeds—define direction, context, and outcomes.
[26:44] Great CFOs provide context, not micromanagement. Great CEOs delegate integration to focus on growth.
[29:32] Former founders can still add value via advisory roles or special projects.
[32:24] Pest control and HVAC still hot—residential M&A picking up, commercial lagging due to government slowdown.
[35:20] Resi/commercial services sector is early in its PE wave. Tons of opportunity, but plagued by poor leadership and weak diligence.
[37:37] Rise in fractional execs to bridge early-stage post-acquisition gaps.
[38:39] Book recs:
[40:30] Scott reflects on making work meaningful in the second half of life—impact over income.
[40:58] Falling Upward explores this journey.
[41:28] Connect with Scott Cook on LinkedIn. Thanks for tuning in.
Subscribe for more episodes on iTunes & Spotify
Got feedback or questions? Email Alex at alex.rawlings@raw-selection.com. Until next time—keep smashing it!