Private Equity Solutions For Portfolio Companies
We bring our expertise in Organizational Capability, Human Capital Management and Assessment to advise Private Equity Firms on how to identify and manage successful acquisitions, realize successful organizational turnaround, and optimize talent in the portfolio companies.
Optimizing Your Portfolio Companies
While PE firms traditionally invest their energy in optimzing the business strategy of their portfolio companies, they frequently under-invest in optimizing the talent strategy in these companies. As a result, operational and strategy execution are compromised and performance is hindered. Too often the only talent decision PE firms make is to retain or fire the incumbent CEO. The expectation is that the CEO will handle all of the talent management issues. Fisher Rock provides intensive post-deal talent and operational assessments in order to provide with the PE firm with data and recommendations on how to quickly improve the company's ability to execute the strategy. Fisher Rock remains involved with the portfolio company to assist them in executing on their talent management strategy. |
Questions and Challenges for PE Firms about their Portfolio Companies
- Is the problem really the CEO? If so, what is the impact to execution? What is the best succession plan?
- How to best avoid holding onto a failing management team or not letting go soon enough?
- Who are the connectors to vendors and customers? What is the strength of the formal and informal organization?
- Where is the power of influence?
- How to move from a culture of entitlement to one of accountability and high performance?
- Organization-wide goals and performance metrics are not aligned.
- PE Operating Partners are transient and cannot lend the long term in-depth management.
- There is a limited pool of competent CEOs.
- Relationships outside of the formal structure (e.g., vendors, customers, etc.) are not well understood
- Strategic decision making governance processes are absent or broken.
