Murphy: PE-backed firms need liquidity events every 3 to 4 years
Steve Murphy · Epicor Targets $1b Run Rate, 50% Pure SaaS. $300m SaaS ARR Today. · Mar 10, 2021 · at 18:26
Epicor CEO Steve Murphy shares operational advice on balancing executive equity compensation and balance sheet stability under private equity ownership.
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“I think where people get in trouble is when they want to create liquidity too frequently in private equity, you can't do it every year or every other year. Maybe it's every three years, or if they think they can wait five to 10 years, then you lose good people, right? Because people, They have kids in college. They have, you know, a variety of responsibilities where they've got to get that at some point. That's the advice I would give is you probably need to have a liquidity vet every three or four years, but you need to plan for that.”
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