In this episode, CJ interviews Hanan Aharoni, CFO of Operative, who is an expert in operational excellence, particularly in private equity. Hanan shares insights on managing acquisitions and overcoming silos, inefficiencies, and decision paralysis in the process. He highlights the importance of having a clear org chart and a unified leadership team before discussing the critical role of culture in successful integrations. He breaks down how to spot inefficiencies, consolidate systems, and optimize costs without stifling innovation. He also sheds light on how the private equity model differs from the venture capital model in terms of allocating resources, managing debt, and being prepared for an exit or sale. This is a masterclass in private equity operations.

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@cjgustafson222 (CJ)

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TIMESTAMPS:

(00:00) Preview and Intro

(01:50) Sponsor – Tropic | RightRev | Planful

(05:32) Hanan’s Impressive Career Rise to CFO

(07:57) Overcoming Silos and Inefficiency When Scaling

(10:23) Overcoming Inefficiency and Paralysis in M&A

(15:27) Sponsor – Brex | Vanta

(17:59) The Importance of Having a Clear Org Chart

(20:51) “Vision Without Execution Is Just Hallucination”

(24:17) Operational Excellence: Identifying Inefficiencies and Optimizing Costs

(27:24) Acknowledging Biases

(28:24) Using Industry Benchmarks

(31:04) Balancing Optimizing Expenses and Preserving Innovation

(34:00) Forming a Mitigation Plan

(39:53) Areas Notorious for Inefficient Costs

(41:40) Allocating Resources in a PE Model Versus a VC Model

(44:41) How Debt Impacts How You Operate in PE

(47:56) Tips for Finance Professionals Moving from VC to PE Models

(49:32) Being Prepared for an Exit or Sale in a PE Environment

(51:44) Long-Ass Lightning Round: A Massive Excel Spreadsheet Error

(53:37) Advice to Younger Self: Fast Decisions

(55:17) Finance Software Stack

(55:55) Craziest Expense Story

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Eliminating Operational Inefficiencies with Hanan Aharoni of Operative

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