Michalik: Ownership aligns incentives with efficiency far better than hourly wages
Chris and Rob Michalik · Chris and Rob Michalik - Twin Tackle of Private Equity at Kinderhook (EP.416) · Nov 11, 2024 · at 13:22
Chris Michalik, co-founder of private equity firm Kinderhook Industries, explains how early work experiences revealed the fundamental incentive difference between hourly labor and business ownership.
0:00 / 0:23exact quote · 23.6s
720p mp4 · rendered on demand · StarZero watermark
“There's a lot of ways to make money, but if you're a paperboy as an example, or you own something, you get the job done in 10 minutes and you make 20 bucks to do it in 10 minutes. If you get paid by the hour, like we were in our Teamster jobs, hardworking jobs, but the incentives are a little strange. You want to fill the hours or maybe create overtime and do things. It became obvious that making money by being an owner was really interesting”
quote is from the automated transcript, cleaned for reading: filler sounds and stutters are removed, nothing is rephrased. names can be misheard (the analysis reads context, assessments check outside sources). how →
More from Chris and Rob Michalik
Michalik: Health systems, not PE, lead provider consolidation
“If you just take providers over the last three or four years, there's been a rapid consolidation of Primary care, as well as specially providers of health care services, and it's been done by private equity, but it wasn't led by private equity. People forget t…”
Michalik: UnitedHealth Agreed to Buy Steward Physician Group for $850M
“United Healthcare ultimately agreed to acquire those assets for eight hundred fifty million dollars, and in May, Stewart filed for bankruptcy.”
Kinderhook Signed $245M Deal in August 2024 for Stewardship Assets
“So we signed a purchase agreement in August of 2024 to acquire the assets of stewardship publicly announced two hundred forty five million dollars.”
Michalik: Over 300 Massachusetts Providers Supported Kinderhook Stewardship Bid
“We've had near universal support from the over 300 employed providers in the state of Massachusetts that they want Rural Health Group slash Kinderhawk to be the acquirer of these assets.”