Becker Business Podcast: "Building Value and Flexibility in Private Equity"

Guest: Craig Levy, Founder of KOM Advisers
Host: Scott Becker
Date: October 29, 2025

Episode Overview

In this episode, Scott Becker sits down with Craig Levy, a seasoned interim CFO and founder of KOM Advisers, to explore how flexibility and operational value creation are transforming the private equity (PE) space, particularly in the lower middle market. Craig shares his unique career journey, insights into current PE trends, the essentials of effective due diligence, and actionable advice for emerging leaders operating in today's rapidly evolving business environment.

Key Discussion Points & Insights

1. Craig Levy’s Background and Role

[00:27 – 01:22]

• Role & Company: Founder of KOM Advisers, specializing in interim CFO and CFO advisory services for lower middle market PE portfolio companies.
• Expertise Sectors: SaaS, fintech, insuretech, marketing tech, B2B manufacturing/logistics, and professional services.
• Approach: Combines strategic finance with operational execution, acting with urgency to drive value creation for sponsors and LPs.

Notable Quote:

“My practice sits at the intersection of strategic finance and operational execution. I’m not just reporting numbers. I’m working with a sense of urgency to actively drive value creation.”
— Craig Levy [00:53]

2. Nonlinear Career Path & Flexibility

[01:22 – 05:14]

• Pathway: Craig’s route to interim CFO was shaped more by opportunity and adaptability than by any formal post-MBA plan.
• Flexibility: Discovered interim roles were both more rewarding and abundant compared to waiting for permanent CFO positions.
• Networking: Early adopter of LinkedIn, leveraged relationships for career opportunities.

Notable Quote:

“Resilience, tenacity, perseverance all come into the mix. … The strength of your network is going to provide you optionality.”
— Craig Levy [03:52]

Memorable Moment:
Craig recalls adding 300 LinkedIn connections in a month and “just started meeting people, developing relationships,” underlining the importance of proactive networking.
[04:29]

3. Current Trends in Private Equity, Especially in Lower Middle Market

[05:14 – 07:15]

• Contrast with Big PE: Larger companies continue to thrive, but the lower middle market faces unique challenges.
• Three Major Trends:
  1. Operational Value Creation Mandate: Sponsors must focus on operational improvements—not just financial engineering.
  2. Exit Complexity: Longer hold periods (now averaging 6.4 years) and declining exit multiples increase pressure on returns.
  3. Non-Bank Lending: Senior lending from non-bank sources is rising.
• Due Diligence Shift: Emphasis on operational due diligence, not just financial numbers.

Notable Quote:

“Sponsors can’t rely on multiple arbitrage and leverage to generate the returns they previously were used to. They need real operational improvement.”
— Craig Levy [06:11]

4. The Importance of Operational Due Diligence

[07:15 – 08:48]

• You Can’t Outsource Diligence: Financial metrics alone are not enough—operators must deeply understand the business.
• Examples: Failure to investigate day-to-day operations can lead to unpleasant post-acquisition surprises (e.g., labor or legal compliance issues in logistics).

Notable Quote:

“You need people touching the steel. You need to actually have somebody going out into your target companies, understanding their customers, understanding how they make their products…”
— Craig Levy [07:42]

Memorable Story:
A logistics company’s inflated EBITDA was exposed only after the deal, due to improperly logged overtime, underscoring the value of operational vetting.
[08:08]

5. Immediate Value Creation as Interim CFO

[09:06 – 10:11]

• Landing Fast: Interim CFOs often enter in times of urgency. There is no “honeymoon period.”
• Priorities:
  • Build credibility with board and leadership
  • Establish bulletproof financial reporting
  • Always plan for eventual exit, even from day one

Notable Quote:

“You don’t have the honeymoon period. … You have to make decisions in the face of imperfect information.”
— Craig Levy [09:20]

6. Advice for Emerging Leaders in PE

[10:36 – 13:09]

• Know Your Superpowers & Blind Spots: Self-awareness is critical. Don’t build homogenous teams.
• Hire to Complement, Not Duplicate: Diversify your team’s skill sets.
• Bias Towards Action: “You’re never going to have perfect information… if you have 80% of the information, build a plan you can execute well and course-correct as you go.”
• Resilience: Develop relationships before you need them, be open to networking and making introductions.

Notable Quote:

“If you lack self awareness and you build a team that’s just like you, you create fragility.”
— Craig Levy [11:24]

Memorable Advice:

"Build those relationships before you need them, Scott, and don’t be afraid to talk to anybody. Ask for the introduction..."
— Craig Levy [12:40]

Timestamps for Key Segments

• Craig Levy’s intro & background: [00:27 – 01:22]
• Career path & power of networking: [01:26 – 05:14]
• Current PE trends (lower middle market challenges): [05:43 – 07:15]
• Operational vs. financial due diligence anecdotes: [07:31 – 08:48]
• Role and focus as interim CFO: [09:06 – 10:11]
• Advice for emerging PE leaders: [10:36 – 13:09]

Craig Levy’s Contact Information

[13:18]

• LinkedIn: Craig Levy
• Email: craig@kom-advisors.com
• Phone: 847-644-5036

“If I can’t help you, I have a deep network of folks that I’m able to refer to folks that are looking for CFO support.”
— Craig Levy [13:30]

Conclusion

This episode offers a candid, up-to-date perspective on how value is built in private equity today and the growing necessity of flexibility, operational rigor, and authentic networking—both for organizations and for individuals seeking lasting careers in the industry. Craig’s practical wisdom and memorable stories make this a valuable listen for anyone involved in PE or considering a more flexible, network-driven professional journey.