Podcast Summary: The Home Service Expert Podcast

Episode: Unlocking the Secrets of Private Equity with Johnny Conklin

Host: Tommy Mello
Guest: Johnny Conklin (Founder and Managing Partner, 16South Capital Partners)
Date: December 29, 2025

Episode Overview

In this insightful episode, Tommy Mello welcomes Johnny Conklin, founder of 16South Capital Partners, to discuss the reality behind private equity (PE) in the home services industry. Their conversation explores Johnny’s personal and professional journey, the evolution and misconceptions around private equity, best practices for founders considering selling or partnering with PE, and actionable advice for home service entrepreneurs aiming to grow, scale, or sell their business. Both leaders emphasize the importance of authenticity, prudent leverage, culture, and legacy, offering a transparent look at the PE process from start to finish.

Key Discussion Points & Insights

Johnny’s Background and Entry into Private Equity

• Influence of Family and Early Exposure:
  • Johnny credits his upbringing in the South and a family rooted in hard work for shaping his perspective, especially after witnessing his father’s business being acquired by private equity in his teens. ([03:19])
• Blue Collar Values with a White Collar Mindset:
  • “I kind of grew up with that... a very normal kind of household... but looking at [business] from a white collar mindset on how to drive value and make money...” — Johnny ([04:00])

Lessons from Past Deals & the Playbook Approach

• Case Study: TurnPoint Services
  • Johnny describes working with “KB” to grow and sell an HVAC business amidst COVID, using systems and a playbook tailored for local markets. The focus was on leveraging local strengths and aggregating best practices across brands, yielding a high multiple at exit. ([05:13]–[08:37])
  • Quote: “A great coach takes the talent they have and builds the game plan to them, not the other way around.” — Johnny ([07:30])
• Building and Evolving Industry Playbooks
  • The importance of learning from both successes and failures (e.g., service experts’ phone number debacle) and the continuous refinement of operational manuals. ([09:03]–[10:26])

Keeping Founders Engaged & Motivated

• Aligning with Non-Economic Objectives
  • PE needs founders for their domain expertise and continuity, but engagement looks different for every leader. Understanding each founder’s personal goals (e.g., wanting more time with family or prioritizing legacy over cash) is crucial for partnership. ([11:28])
  • “We should be solving that business owner’s problems... and if we do that, we’re going to build great technicians... phenomenal service, and the spreadsheets and money will take care of themselves.” — Johnny ([13:34])
• Ambassador Programs & Founder Legacy
  • Even if a founder steps back from daily operations, creating ambassador roles and maintaining their presence in training and culture is vital to preserve the brand’s “DNA” and support staff morale. ([16:04])

16South’s Distinct Approach to Private Equity

• Right-Sized Leverage
  • 16South avoids traditional high-leverage buyouts, instead using zero to moderate leverage until the business is mature and cash-generating. This reduces risk and stress for founders and allows for calculated, opportunistic growth. ([18:29], [35:25])
• Partnership Model and Operator Focus
  • Johnny’s team includes experienced operators like Mike Gillen, who grew National Car Wash Solutions from $60M to $1B by putting service and technician experience at the center. This operational DNA is leveraged to help portfolio companies. ([22:34])
• Working with Founder Identity
  • 16South recognizes that, for many, the business is a core part of their identity; thus, M&A strategy aims to protect and extend that legacy rather than erode it. ([25:39], [28:50])

Managing Wealth After the Exit

• Transition Challenges
  • Founders often face emotional and practical difficulties post-sale (e.g., “lottery winner” syndrome, managing newfound wealth, loss of purpose). The importance of planning, patience, and finding new meaning is discussed, alongside advice from Johnny’s Executive Council and network. ([30:58])
  • Quote: “Keeping money is a whole different skill than making money.” — Tommy ([29:22])
• Focusing on Team & Legacy
  • The most satisfying outcomes are those where wealth extends to employees and families, ushering in “life-changing opportunities.” ([32:45])

Leverage and Growth: Striking the Right Balance

• Prudent Use of Debt
  • Johnny advocates for prudent draw-downs and accessible capital reserves to take advantage of growth opportunities, cautioning against over-leveraging and the potential “death spiral” after one bad year. ([33:58], [35:25])
  • Quote: “Prudent use of leverage at the prudent time. It’s more of a philosophy, and it’s not always an Excel calculation.” — Johnny ([35:25])
• Delayed Draw Term Loans
  • Tommy suggests securing undrawn debt before it’s “needed” to capitalize quickly on acquisition opportunities. ([38:00])

Misconceptions About Private Equity

• PE’s “Bad Rap” and PR Problem
  • Negative stories about PE get amplified, overshadowing its positive impact (“PE has lost the marketing war”). The podcast debunks myths about destruction, greed, and mindless cutting, emphasizing the role of alignment, long-term thinking, and employee ownership. ([39:26], [40:26])
  • Quote: “The horror shows get way more attention than the really good situations. I think net-net, private equity is a good thing. There’s different flavors of it.” — Johnny ([40:26])
• Operational vs. Financial Expertise
  • While PE excels at financial engineering, elite operators know that lasting success requires investment in people, culture, and the internal Net Promoter Score. ([43:41])

Advice for Founders Considering a Sale or Capital Raise

• Authenticity and Transparency
  • Be honest about strengths and weaknesses; humility attracts good partners, while arrogance and guardedness are red flags. Mutual reference-checking is encouraged. ([47:10], [48:14])
  • Quote: “If someone hasn’t thought about these things, they’re probably not ready for a deal—and that's ok.” — Johnny ([48:38])
• Focus on Partner, Not Just Price
  • Timing is never perfect, and focusing solely on the last dollar can be self-defeating; prioritize culture and partnership fit. ([59:46])
  • “Any time you partner with somebody, that should be a top five life moment... take the care to do it right.” — Johnny ([61:10])

Rapid-Fire Advice for Home Service Operators

• Low-Hanging Tech for Home Service Companies ([51:26])
  • Phone/call center systems to track leads
  • Efficient field software (quoting, payments)
  • Route optimization tools
• Fastest Way to Kill Growth:
  • “Change what’s working without understanding why it works.” ([52:32])
• Signs of a Strong Operator:
  • Knows when to hire for depth; avoids being the bottleneck; builds robust teams. ([55:32])
• Early-Career Belief Overturned:
  • “I thought for a long time that money solved everything. It just doesn’t.” ([57:20])
• Recommended Unconventional Book:
  • Inner Excellence by Jim Murphy ([64:28])
• Life/Business Wisdom:
  • “Fall in love with the journey, not just the destination.” ([57:20], [62:26])

Notable Quotes & Memorable Moments

• On Partnering:
  • “Anytime you partner with somebody, that should be a top five life moment... take the care to do it right.” — Johnny ([61:10])
• On Keeping Founders Engaged:
  • “They're going to forget more about their business than I will ever know about it.” — Johnny ([13:20])
• On Legacy:
  • “For the owner standing to make life-changing money... I don’t think you can simply go turn the light switch off. You just can’t.” — Johnny ([31:16])
• On Purpose:
  • “It’s about delivering the ball at the right times for someone else to score.” — Johnny, on building opportunities for others ([32:05])
• On Leverage:
  • “We should not be taking excessive risk to put the company at risk and, or to prevent growth opportunities.” — Johnny ([35:25])
• On Money:
  • “More money, more problems. That’s true for most people.” — Tommy ([59:27])
• On Personal Growth:
  • “22-year-old Johnny would say: don’t spend so much on haircuts—it’s not going to matter in the long term.” — Johnny ([63:34])
• On Advice for Sellers:
  • “Focus more on partner than last dollar.” — Johnny ([60:20])
• On Business Being Personal:
  • “Business is personal. If it’s not, you’re probably not going to win against those of us that feel that way.” — Johnny ([67:47])

Timestamps of Critical Segments

• [03:19] — Johnny’s personal story and entry into PE
• [05:13] — Case study: Scaling and selling an HVAC business (TurnPoint)
• [11:28] — Keeping founders aligned and motivated post-sale
• [18:29] — Why and how 16South’s PE approach is different
• [30:58] — Managing the transition post-exit: Wealth, identity, and legacy
• [33:58] — Debt, leverage, and risk, especially for growing firms
• [40:26] — Private equity’s reputation problem and the reality
• [47:10] — What attracts PE to founders: authenticity, transparency, humility
• [51:26] — Speed round: Tech, growth killers, operator strengths, beliefs
• [59:46], [61:10] — Advice for those preparing for a sale/exit
• [62:26] — Advice to 22-year-old self
• [64:28] — Book recommendation: Inner Excellence
• [67:47] — Final advice: The importance of community, self-investment, and removing negative influences

Closing Thoughts

This episode goes beyond typical PE conversations by diving deep into the human aspects of M&A, the critical role of legacy, and building meaningful partnerships. Johnny and Tommy recommend that founders—whether contemplating PE or seeking to scale—should seek wisdom, question assumptions, value authenticity, and focus on building enduring companies that serve customers, teams, and community.

For contact:

• LinkedIn: Johnny Conklin ([67:11])
• Company: 16South Capital Partners

Summary prepared for home service entrepreneurs, operators, and founders seeking clarity, actionable insights, and partnership wisdom for navigating the world of private equity.