This post is based on remarks IntelliVen CEO, Peter DiGiammarino made about what Private Equity Operations partners do for portfolio CEOs at a National Private Equity International Operating Partners Forum Panel Discussion in Sentry Center, New York City.
A view from the portfolio company CEO on:
- Management autonomy and sponsor inclusion; striking the right balance.
- Engaging with the General Partner over the life of the transaction.
Beyond getting deals done and setting up financing, there are three things an operations professional counts on from his/her private equity investor:
- Governance– i.e., provide a consistent point of accountability to report on: what we said we would do, what we did, what happened, what we learned, and what we plan to do next; we count on you to ask good questions to push up our thinking and give us your best advice.
- Focus– i.e., help us clarify whose problem we solve, how, and how well and clarify our roles to verify they make sense and that we, individually and collectively, actually do what we say we do.
- Access– i.e., help secure the money, people, partners, clients, best practices, knowledge, etc. needed to be successful.
A team is a group of people working together to achieve a common goal. If everyone sinks or swims together the investor team and the operating team aggregate to form the deal team.
The CEO’s job is to get the most out of all available resources to achieve the best possible result in the shortest possible time. Those on the investor team are there for the CEO to draw-in and leverage as best s/he can just like any other resource. Why then does it often seem that the investor team and the operating team are competing rather than working together? Continue reading What the Ceo of a PE-owned company has to do when 25% of annual revenue disappears overnight.