There are a series of key actions that you can follow … to achieve a
great first hundred days. Doing so will then maximize your opportunity
to achieve successful long-term performance.
(Thomas Neff & James Citrin, Spencer Stuart)
Times of transition are critical in the life of a company. Being acquired by a private equity firm is one such transition. Regardless of whether the company leadership changes, there is someone new at the helm with them who has made an investment to steer the ship in a new direction.
While many things will stay the same, there must be some fundamental shifts in how the company does business or else the value creation proposition would not exist.
Being deliberate about determining what those shifts need to be and establishing an agenda that will become the foundation for a successful relationship with the private equity company should be a high priority for the CEO of every newly acquired portfolio company.
The RobinsonEdwards Group can work with the portfolio company CEO to craft that agenda and provide the coaching support and accountability to ensure it is executed.
Benefits of Transition Support Phase
- Groundwork for a good working relationship between the portfolio company CEO and the new board
- Understanding of the fundamental changes in the portfolio company that must be made – culture, reporting, operations, incentives, etc. – to achieves financial goals of the investor
- A strategic framework for how the portfolio company CEO delivers value that is consistent with the objectives established during the acquisition phase
Work with the management team and fund managers to create a solid foundation for value creation after acquisition
- Support the CEO in developing an action plan for the first 100 days under new ownership to proactively address issues related to change in company ownership and/or change in leadership
- Support the CEO in creating a strategic agenda that will establish a solid foundation for success
- Facilitate the establishment of clear, effective and efficient guidelines and norms for communications with the board
- Coach CEO through execution of the plan to ensure smooth transition into meeting company objectives