10+ hours of podcasts, in 5 minutes.
6 quotes from 2 episodes on Karma School of Business, each with a timestamped link to the source.
Private equity firms turn to interim executives to manage portfolio companies late in a hold period. Sean Mooney reports that sponsors use temporary leadership models and structured sales data to prepare businesses for a sale.
The market for temporary management is growing rapidly without a matching increase in traditional executive search activity.
“Now, that world has been growing dramatically this quarter, but what's not coming with it as much is the recruiters.”
From Sponsors Turn to Interim Executives for Late Hold Sales
Simply tracking how a product moves through a sales funnel creates immediate value for companies that previously operated without formal data.
“Just organizing your funnel, your product or service moves through it. Looking at the data is probably something that unleashes a tremendous amount of value to these companies that have otherwise been really good over their time.”
Firms make mid-stream leadership updates when unfinished operational work delays an exit. Sean Mooney observes high demand for interim executives as portfolio companies extend hold periods.
“The other thing that's giving us a lot of insight into why their hold periods are perhaps being extended is we're seeing a lot of demand for interim executives across private equity…”
From Sponsors Turn to Interim Executives for Late Hold Sales
“What that typically means is you're making changes in your portfolio company either at the very beginning of a deal or in the midstream. We're seeing a lot of mid-stream changes, which typically means we've got more work to do.”
From Sponsors Turn to Interim Executives for Late Hold Sales
Sean Mooney notes that hiring full-time executives makes little sense right before a sale. Private equity sponsors treat temporary management as a rent-to-own arrangement that lets the next owner select the permanent team.
“What this tells me is once again is PE is very late in their hold. they are getting ready to sell and it may not make sense or may not be possible to bring in a full-time new seauite or parts of the seauite based on how deep they're in the hold…”
From Sponsors Turn to Interim Executives for Late Hold Sales
“So what they're going to do is bring in someone who they can kind of have during the transition and then the next buyer can say, 'Hey, do we want the CEO in place?' They're kind of doing a mutually beneficial kind of rent to own, if you will…”
From Sponsors Turn to Interim Executives for Late Hold Sales
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