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Leveraging Interim Executives in Private Equity Portfolio Companies

​In the dynamic world of private equity, the ability to adapt and drive value creation is paramount. Interim Executives, with their specialised expertise and industry connections, are increasingly becoming the go-to solution for private equity firms looking to navigate complex transitions and achieve strategic growth. These seasoned professionals play a pivotal role in reshaping the private equity landscape, driving value creation and strategic transformation. Here are the key reasons and benefits:

  1. Agile Growth Facilitators:

    • Private equity portfolio companies often experience rapid growth due to mergers, acquisitions, or market dynamics.

    • Interim Executives bring specialised expertise, enabling efficient scaling. For instance, when a business expands significantly, interim leaders—such as CFOs or CEOs—help manage the transition smoothly.

  2. Building M&A Deal Teams:

    • Interim Executives contribute significantly to above-market returns during mergers and acquisitions.

    • They assess internal capabilities, identify gaps, and assemble executive deal teams. These teams maximize growth during transitions, acting as true “A-teams” for successful integration.

  3. Industry-Connected Experts:

    • Beyond qualifications, Interim Executives bring extensive industry networks.

    • Their track records in completing complex transactions (mergers, acquisitions, spin-offs) make them valuable assets for private equity firms.

  4. System Integration and Transformation:

    • Mergers and acquisitions require seamless system integration. Permanent leadership may lack specialised expertise.

    • Interim CFOs and COOs establish efficient systems, bridging the gap between existing operations and growth opportunities. They drive digital transformation and ensure smooth transitions.

Private Equity - Interim Executive Case Study

The Client:

A private equity firm had identified a private company in the pre-prepared health food industry and required an Interim CFO to complete due diligence and review the investment potential of the business.   If the acquisition was successful, they would be engaged on an ongoing basis as an Interim CFO to position the company for an IPO. 

The Brief:

Deep functional and sector experience was essential for this role so that they could identify and execute the change and transformation required in an agreed timeframe taking the business through the IPO process.  Previous IPO experience was a prerequisite.

Watermark’s Solution & Outcome:

A shortlist of two candidates was put forward immediately with the necessary skills and experience and the preferred candidate was placed within a few days. The candidate subsequently converted to the permanent role.

To harness the full potential of your portfolio companies, consider integrating Interim Executives into your strategic plan. Their expertise and agility can be the catalyst for transformative growth and sustained success. Reach out to us today to explore how our network of seasoned Interim Executives can help you achieve your investment goals - contact us.