Optimizing Companies With the LIFT Strategy

On this episode of the Private Equity Value Creation Podcast, Shiv Narayanan interviews Chip Baird , Managing Partner at GreyLion Capital.

Shiv and Chip take a deep dive into GreyLion’s core LIFT (Leadership, Investment, Flexibility, Technology) strategy for optimizing companies to increase enterprise value. Learn how to identify critical leadership gaps and hold new hires accountable, and how a flexible approach to capital structure could help businesses weather challenging macroeconomic environments. Hear how reinvesting earnings accelerated a company’s growth, and how portcos can leverage technology as a value creation tool rather than a cost center.

How To Avoid False Starts When Hiring For Portcos

Building a leadership team is one of the most crucial and challenging tasks for any founder. Finding the right fit isn’t an exact science, and often it takes a few tries to get it right. Companies need to be able to quickly identify when a hire has missed the mark, and, even better, to avoid this kind of misalignment from the start.

Determining if a leader has missed the mark starts with clear expectations. If a hire isn’t delivering on agreed-upon goals, struggles to align with the company culture, or fails to navigate the unique challenges of a high-growth business, it’s time to evaluate whether they are the right fit. This is especially critical in entrepreneurial environments, where leadership needs to balance structure and flexibility. Leaders from large, established organizations may have deep domain expertise and impressive resumes, but they may not be accustomed to the resource constraints and constant pivoting of a startup or scaling business.

The best approach to building a strong leadership team often lies in finding individuals with a blend of experience. Ideally, they have honed their skills and expertise at larger organizations, gaining insight into strategy, systems, and best practices. But just as importantly, they have also worked at smaller, fast-growing companies and understand the scrappiness, resilience, and agility needed to succeed in a more entrepreneurial setting. Marrying these two backgrounds can create a powerful leadership dynamic—where strategic thinking is paired with a hands-on, adaptable approach.

How To Approach Implementing New Tech Platforms

Implementing major technology platforms, such as switching CRMs or adopting an ERP system, can feel like a necessary step toward growth and scalability. But these projects often come with a dilemma: while they promise future efficiencies and long-term value, they can take significant time and attention away from immediate revenue-generating activities. So how can a business strike the right balance between building for the future and driving current performance?

The first step is ensuring that the right people are in place to lead and own the implementation. Technology transformations without knowledgeable, dedicated leadership often lead to wasted time, overspent budgets, and disappointing results. Effective change requires experience, not just enthusiasm. For example, if a company is planning an ERP implementation, bringing in a CFO who has successfully led such projects can be a critical first step. This expertise becomes a key criterion in the hiring process—ensuring that the person responsible knows what to expect and how to steer the project efficiently.

Ultimately, the key is to view major technology projects not as isolated initiatives but as integrated components of the broader growth strategy. With the right people in place, companies can ensure that these implementations drive lasting value without sacrificing momentum.

Overcoming Cash Flow Constraints to Unlock Value

It’s common for growth-stage companies to inadvertently place limitations on themselves due to concerns over cash flow. Founders, often deeply rooted in their product expertise, tend to focus their attention on building and selling the product. This focus is essential, but it can lead to underinvestment in other areas of the business that are equally important for scaling and capturing value. In particular, functions like finance and operational infrastructure often receive less attention, not necessarily out of neglect but because they aren’t the founder’s primary area of strength or focus.

One area where this challenge becomes apparent is in the CFO suite. Virtually all of the companies GreyLion Capital invests in are under-resourced when it comes to financial leadership and processes. Investing in this function early on often yields significant returns. A robust finance function brings clarity, discipline, and data-driven decision-making to the business through KPIs, metrics, and detailed reporting.

Many founders tend to “run the business in their head,” relying on their intuition and deep industry knowledge. While this works up to a point, scaling requires institutionalizing that knowledge. Introducing structured KPI reporting, systems, and processes transforms a founder-led operation into an organization with transparency, repeatability, and scalable practices.

Preparing for Growth: GreyLion’s Pre-Investment Value Creation Approach

At GreyLion, creating value for portfolio companies doesn’t begin after an investment—it starts well beforehand. The pre-investment phase is a critical period for identifying value creation levers and assessing whether the right people are in the right roles to drive growth. This thorough process involves sitting down with founders, entrepreneurs, and CEOs to engage in open and honest discussions about the business’s current state and potential.

The conversation starts with a simple but insightful question: “What is your biggest business challenge?” This inquiry often reveals the areas where the leadership team feels they need the most support or face the greatest obstacles. It allows GreyLion to understand where operational gaps, growth barriers, or market pressures may exist and how they can bring their expertise to bear in addressing these issues.

From there, the focus shifts to the future. GreyLion asks, “What is our ambition to scale this business?” Together with the company, they map out the current organizational structure and envision what it should look like to achieve the company’s growth goals. This exercise produces a prospective roadmap that functions like a Gantt chart, outlining key hires, structural changes, and strategic milestones. Working backward from the desired state, GreyLion develops a clear plan for scaling the business effectively.

The first 12 to 18 months post-investment typically involve a heavy lift to build up the organization. Hiring the right talent is a major focus, but it is also a challenging process. Finding the perfect candidate on the first try isn’t guaranteed, and sometimes multiple hires are necessary to fill a critical role. Waiting too long to make these key hires only compounds the challenge; if a hire is delayed by a year or two and doesn’t work out, the timeline to get it right can extend to four or five years.

Check out the full conversation with Chip 👇

Private Equity Value Creation is a podcast about the innovative approaches leading investors, operators, advisors and bankers employ to drive sustainable growth and create enterprise value. Hosted by Shiv Narayanan.

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