Networking and Diversifying Skills: The Key to Private Equity Success with Gabe Galvez
Mar 08, 2023Gabriel (Gabe) Galvez is a career entrepreneur turned private equity investor. Starting his entrepreneurial journey at a young age, Gabe achieved a successful exit from his first company at the age of 23. He subsequently built a fruitful career in consulting and banking before launching multiple companies catering to the private equity and investment banking sectors. Currently, Gabe is the founder of Verde Holdings, which concentrates on supporting intelligent entrepreneurs in their buy-and-build pursuits, rather than restricting itself to a particular asset class or industry.
DIVERSIFY YOUR SKILLS
Gabe's diverse skill set in hypergrowth companies, distressed companies, and accounting systems gave him a unique perspective in advising on deals. This underscores the importance of having a diverse skill set when working in the M&A space. Networking and reaching out to contacts also played a significant role in Gabe's journey, highlighting the importance of these factors in finding new opportunities.
There is also significant importance to understanding the needs of all stakeholders in a deal, including investors, employees, and other parties involved. Proper resource allocation and stakeholder care are crucial in ensuring the success of a deal.
LEVERAGING YOUR NETWORK
Instead of trying to predict the market, Gabe and his partner prioritize leveraging their networks for inorganic growth in commercial property services, specifically landscape maintenance and porter services. It is important to achieve short-term results to establish a successful investment track record before using other people's money.
Gabe's investment strategy is unique in that it prioritizes leveraging networks and Rolodexes, which can be a successful way to achieve inorganic growth. Although Gabe's investment strategy may not work for everyone, it illustrates the significance of having a well-defined and effective investment strategy that aligns with one's objectives and resources.
PRIVATE EQUITY IN RECENT MARKET CONDITIONS
Private equity is integral to the American economy, and Gabe believes they have an obligation to contribute to it. He believes in the "show must go on mentality," recognizing that there is a new wave of not entirely understood risks on the horizon, but that someone needs to do the work.
Gabriel's advice suggests that it is important to maintain a balanced perspective when considering investments in down markets. While challenges may exist, opportunities can also be found. Moreover, normalized valuations can provide some hedge against risk. If assets can be purchased at a significant discount during a high-risk market, this could offer some level of protection. By following these guidelines and staying aware of market trends, investors can make informed decisions that increase the likelihood of success.
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For my full discussion with Gabe Galvez, and more on this and other topics:
Listen to the Full DealQuest Podcast Episode Here
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FOR MORE ON GABE GALVEZ:
https://www.linkedin.com/in/gabe-galvez-5aa9b62/
https://www.captarget.com/
Corey Kupfer is an expert strategist, negotiator, and dealmaker. He has more than 35 years of professional deal-making and negotiating experience. Corey is a successful entrepreneur, attorney, consultant, author, and professional speaker. He is deeply passionate about deal-driven growth. He is also the creator and host of the DealQuest Podcast.
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