Compiled by Madelyn Ostendorf
Mike Taylor (‘03 agricultural studies), co-founder and partner with Midwest Growth Partners in West Des Moines, Iowa, was the spring 2003 CALS Convocation speaker and featured in the spring 2011 STORIES magazine.
Tell us about your post-graduation journey
I graduated in May of 2003, and my fiancé, Lindsay, graduated the same day from Drake with a pharmacy degree. We bought our first pharmacy in August 2003, and we were a good team. Over the next decade, we built a platform of pharmacies and eventually sold them to John Pappajohn in 2021. I fell in love with the mergers and acquisitions process along the way. Our thesis had historically been, “Why can't we step into an existing business and grow from there?” In 2013, we formalized our approach, which is Midwest Growth Partners. Since then, we've raised over $510 million in equity across four funds from institutional investors to invest in lower middle market companies that are largely food, ag, and rural-focused.
How did your experiences at Iowa State University shape your career path?
At Iowa State, people are very giving of their time and expertise. I had many folks willing to let me ask questions, guide me, and help teach me about their mistakes so I could avoid making them. Knowing I had access to those resources and those people was great. I also learned a great deal from my entrepreneurship minor. Looking back, it’s amazing how applicable my studies are to my career.
How do you select businesses for investment?
It starts with the people. No matter what business you're buying, if you don't have good management to run it, the underlying business doesn't really matter. Beyond that, we’re looking for companies with a strong track record of success, products or services that are defensible yet stable, and ideas or levers for growth.
What are some lessons you've learned?
I learn something new on every deal. When we go into a management meeting to look at buying a business, the people we're buying the company from are usually the smartest in the room, certainly within their domain. We’re trying to protect our interests, but we must also be humble enough to know they built a great business. It all comes back to people. I constantly have a renewed appreciation for how valuable the management team is because they know so much about the business.
What is some advice you’d offer fellow entrepreneurs?
Get multiple mentors as early as possible; it doesn't have to be sector-specific. Having a mentor with a different background from you can be advantageous. Never underestimate the value of lifelong learning and networking. Play the long game.