How to Grow a Consulting Business Through Equity Deals and Fixing Underperforming Businesses with Casey Cavell
Key Takeaways
- Look for underperforming businesses with solid fundamentals but poor processes - these are the highest-upside acquisition targets
- Use a 90-day initial engagement to build trust before committing to equity deals or long-term partnerships
- Structure equity and profit-sharing deals carefully - understand the difference between buying outright versus investing as a partner
- Apply the 80/20 rule to delegation - identify the top 20% of non-essential tasks to hand off first and train thoroughly
- Accept 8 or 9 out of 10 quality work from others so you can reclaim time for the activities only you can do
- Define business objectives that align with your personal goals - not every business needs to be a venture-scale play
- Bring in A-players early and invest in their growth - the right people transform a struggling business faster than any process change
Casey Cavell joins Agency Journey to share how he has built a $40M portfolio from a $9K initial investment by finding, fixing, and investing in underperforming businesses. Over 20 years, Casey has founded, bought, or invested in dozens of companies. This episode is packed with practical insights for entrepreneurs thinking about growing through acquisition, equity partnerships, or consulting engagements that go beyond traditional retainers.
Finding and Fixing Underperforming Businesses
Casey’s approach starts with identifying businesses that have solid fundamentals - real customers, real revenue - but are held back by poor processes, weak leadership, or operational chaos. These are not failing businesses in the traditional sense. They are businesses with unrealized potential.
The key is recognizing what is fixable versus what is fundamentally broken. Casey looks for owners who have built something real but hit a ceiling they cannot break through alone. Often the problems are operational: no systems, no documented processes, no clear org structure. These are the exact issues a skilled operator can solve relatively quickly.
Once Casey identifies a target, he does not rush into a deal. Instead, he uses a 90-day initial engagement to build trust, diagnose the real issues, and demonstrate value before any equity or long-term commitment changes hands. This trial period protects both sides and ensures alignment before the stakes get higher.
Structuring Equity and Profit-Sharing Deals
Not every deal looks the same. Casey breaks down the spectrum from buying a business outright to coming in as an investor or equity partner. Each structure has different risk profiles, capital requirements, and levels of involvement.
For agency owners and consultants considering this path, the profit-sharing model is particularly relevant. Rather than acquiring full ownership, you can structure a deal where your compensation includes a share of the upside you create. This reduces upfront capital requirements while aligning incentives - you only make more when the business makes more.
Casey emphasizes the importance of clear agreements from day one. Ambiguity around ownership percentages, decision-making authority, and exit terms creates conflict later. Work with a good lawyer, get everything in writing, and make sure both sides understand what success looks like.
The Art of Delegation and Reclaiming Time
One of the biggest themes in Casey’s approach is reclaiming time as an entrepreneur. Too many business owners spend their days “doing” rather than thinking about improvement, strategy, and growth. The result is a business that depends entirely on the founder - which limits scale and creates burnout.
Casey applies the 80/20 principle to delegation. Start by identifying the top 20% of tasks that consume your time but do not require your unique skills. Delegate those first. Train the person thoroughly - do not just hand off tasks and hope for the best. Then monitor results over 90-day intervals to ensure quality holds.
A critical mindset shift Casey recommends: accept that others will do the work at 80-90% of your quality level. Holding out for perfection means you never delegate, which means you never scale. The gap between “good enough” and “perfect” is where most entrepreneurs trap themselves.
Hiring A-Players and Defining Personal Goals
Casey is direct about the importance of bringing in A-players. The right people transform a struggling business faster than any new process, software, or strategy. Finding them requires intentional effort - defining what “great” looks like for each role, screening rigorously, and paying competitively.
He also challenges the assumption that every business needs to grow endlessly. Casey encourages entrepreneurs to define objectives that align with their personal goals. Some businesses are meant to be lifestyle plays. Others are meant to scale aggressively. Knowing which path you are on prevents the misery of chasing growth you do not actually want.
Resources Mentioned
- Casey Cavell on LinkedIn
- Casey Cavell’s Website
- The Dugout CEO Podcast - Casey’s podcast
- The Friday Drive Newsletter - Casey’s weekly newsletter
- “Good to Great” by Jim Collins - Recommended reading
- “Rich Dad Poor Dad” by Robert Kiyosaki - Recommended reading
- “The E-Myth” by Michael Gerber - Recommended reading