Michael Praeger's Journey: AvidXchange's New Chapter in Private Equity

Michael Praeger’s amazing journey continues

Michael Praeger continues to amaze me.

For 27 years, I’ve had the privilege of walking alongside him. First as a friend, then as his coach. Over the past quarter-century, we’ve shared not just business milestones, but a deep and evolving partnership rooted in mutual growth, trust, and purpose.

Michael has defied all odds and taken AvidXchange on a magical journey over the last 25 years through many obstacles, opportunities, growth milestones and achieved multiple BHAGs (Big Hairy Audacious Goals). Michael’s favorite phrase, “Our Journey Continues,” captures the spirit of his work and the life he leads. After many years of growth and building a unicorn (privately held company valued at greater than $1B), he took AvidXchange public in October 2021. He reminded all AvidXchange team members “Our journey continues”. He has successfully led and managed a public company over the last four years making his numbers every quarter. 

Last week, AvidXchange announced their intention to be taken private by TPG, a private equity firm. I asked him what he was going to do next.

“Our journey continues. I am not going anywhere.”

Michael will continue as the CEO, leading AvidXchange forward into this next chapter of their magical journey. He has courageously chosen the best route for his company over the last twenty-five years. Going public in 2021 was the best choice back then. Taking the company private now gives AvidXchange a lot of advantages. It’s a new chapter in their journey.

How to be like Mike

Many CEOs and founders have asked me, “How do I be like Mike?” I sat down with Michael yesterday and asked.

Here are a few lessons he shared:

• Start by being passionate and excited about every part of your journey
• Be super curious and very intentional about learning and personal growth for yourself and your team
• Turn all feedback and any bad news into opportunities for growth and improvement
  “Bad news is actually good news,” Michael once shared with me. “Now I know what to fix. It is hard for someone to give me feedback. I am genuinely grateful that they helped me with bad news early.”
• Believe in your people and giving them growth opportunities
  Michael has an intense desire to help all his stakeholders be successful at AvidXchange. Many members of his team, with the right opportunities, have served as positive assets when given the chance. He strives for everyone associated with AvidXchange to be successful.
• Have a consistent cadence
  He adopted Rhythm Systems' THINK PLAN DO® process and has never missed a quarterly planning meeting. They have done more than a 100 planning sessions to work on the business and build execution plans that align all departments. Every quarter is a 13 week race with accountability to achieve their goals.

Randy Carr, CEO of World Emblem, shared with me recently “Patrick, What you and the Rhythm Systems team have done for Michael Praeger and AvidXchange is just incredible!”

So I asked Mike for his opinion

• I have used the Rhythm methodology and process in every stage of our growth and journey.
  It works because I cannot tell what is going to happen next, so I am committed to being in a regular cadence to lift ourselves above the daily operations of the business, work on our growth strategies, and be very intentional about getting our teams aligned and working well.
• I have used Winning Moves.
  Developing and focusing on growth strategies on a regular basis made sure we had growth moves consistently over these 25 years. It’s been critical to have a constant flow of ideas for growth. It's been key to our success.

Winning Moves were key in AvidXchange's growth. Watch this 1-minute video clip.

• My working relationship with Patrick has helped me in all stages of our journey. 
  Sometimes I need a friend, sometimes I need a cheerleader. Other times I might need a strong coach in areas that are my blind spots. Having a coach like Patrick who cares deeply about me, knows me and AvidXchange well is priceless. Being on a regular rhythm to reflect has allowed me to pause and see things that I would have missed. It has been part of my formula for success.

Watch as Michael shares his feedback with Patrick about how coaching has helped him succeed.

"I do not know what the future brings, but I know that Patrick’s Rhythm process and system equips us to level up, and enjoy the journey and execute successfully at every stage of AvidXchange’s journey," added Michael.