In an increasingly competitive market, nothing is more important in private equity than time. PE-backed CXOs need to optimize each day of their leadership to lay the foundation for long-term growth.
Only one-third of respondents understood their new portfolio company enough to confidently assess next steps within one month.
— 2022 PE-CXO Survey
Quickly coming up to speed on the portfolio company is key. However, to get on course for a long-term value creation plan, executives need a detailed and robust roadmap. Given the number of areas in need of assessment, breaking down the first 100 days as follows can support your efforts to create a plan that positions the company for long-term success.
From diligence through the first two weeks: The deep dive
An executive’s top priority in a new role is to understand the current strategy and investment thesis. Much of this work can be completed during due diligence, as savvy executives should already be on the lookout for a solid thesis before committing to their next role. Leverage the diligence period to obtain as much information as possible on the company’s current status and goals, including their customer base, value proposition, and competitive position.
Evaluate not only the company, but the sponsor. Align on day one with the sponsor’s comfort levels on the speed and degree of change. Stress-testing for sponsor willingness to change is a crucial day-one step to make sure your plans for transformation and growth throughout the next 90-100 days are neither too modest nor extreme. This will prevent wasted time, resources, and damaged relationships down the road.
Within 30 days: Complete the preliminary business assessment
Executives should immediately validate or challenge assumptions. Evaluate whe...