Guest:

Steve Cook, Executive Managing Director, LFM Capital
MIT LGO (MBA/MSEE) | Former Dell Plant Manager | Private Equity Operator & Educator

🎙️ Episode Overview

In this powerhouse conversation, Justin sits down with Steve Cook, Executive Managing Director at LFM Capital, a private equity firm uniquely built and led by operators and engineers. Steve shares rare, behind-the-scenes insights on how LFM identifies, acquires, and transforms mid-market manufacturing companies—not through financial engineering, but through people-centric leadership, hands-on operational excellence, and a relentless commitment to long-term value creation.

With decades of experience leading industrial businesses, teaching at Harvard Business School, and mentoring future leaders at MIT, Steve brings a refreshing blend of humility, clarity, and practicality to the world of PE-backed manufacturing.

If you're a manufacturing leader, business owner, aspiring CEO, or private equity stakeholder, this is a must-listen.

1. Why LFM Capital Breaks the Traditional PE Mold

• LFM is one of the only U.S. private equity firms where an operating partner also runs the firm.
• True parity between deal partners and operating partners leads to better diligence, alignment, and execution.
• How LFM avoids the “painted-on operating partner” problem common in the industry.

2. What PE Really Looks for in Mid-Market Manufacturing Deals

• Why LFM invests in companies with $3–$15M EBITDA and fewer than ~250 employees.
• How leadership quality, culture, and values matter more than perfect metrics.
• Why buyers should not pursue “perfect companies”—real value is created where opportunity exists.

3. Leadership: The Make-or-Break Factor in Value Creation

• Arrogance is the enemy of leadership—humility is essential.
• Why effective CEOs must be able to “play the full keyboard”:
  • Shop floor → Board room → Customer meetings.
• LFM’s CEO Development Program: a 5–7 year rotational system creating cross-functional, hands-on, next-generation executives.

4. The First 100 Days After Acquisition

• LFM’s collaborative approach: no “one-size-fits-all” playbook.
• How they co-create an Operational Agenda before closing a deal.
• Why focusing on just three priorities at a time is essential for smaller companies.

5. Implementing Lean in Resource-Constrained Environments

• Why Lean is easier to implement in small companies than large ones.
• The cultural importance of leadership buy-in—especially from the CEO.
• Steve’s take on fractional CI leadership, external facilitation, and when companies should backfill with full-time CI talent.

6. How LFM Navigates Tough Deals & Upholds Values

• The Apollo 13 story: how LFM refused to abandon a distressed deal, preserving jobs, paying back lenders, and honoring the seller’s legacy.
• Why LFM optimizes for a 50-year time horizon, not a 5-year fund cycle.

• Mid-market manufacturing owners considering an exit
• CEOs and plant leaders navigating growth or operational challenges
• Private equity operating partne