From Deal Flow to Talent Flow: A Q&A with Vivek Batra of Alphaskill

by Eric Walczykowski | Oct 1, 2024 | Alliance, Blog

From Deal Flow to Talent Flow: A Q&A with Vivek Batra of Alphaskill

Authored By Eric Walczykowski

As private equity markets in Europe show renewed activity, firms are focusing on aligning talent with their investment strategies. Success hinges on having the right leadership to navigate deal complexities and execute growth plans.

I recently spoke with Vivek Batra, Managing Partner at Alphaskill. Our firms share a commitment to client success via executive search—Bespoke’s expertise in the US and Alphaskill’s network across Europe. In this conversation, we cover the market, challenges of securing top-tier talent, and strategic leadership in new markets.

Below is a summarized Q&A of my conversation with Vivek.

Eric: Let’s start by introducing Alphaskill. How would you describe your approach to executive search, and what’s your current focus in Europe?

Vivek: Alphaskill is deal-centric—we focus on working with private equity firms, primarily mid-cap, and we operate out of three European offices: Munich, London, and Paris. Our approach is unique because we provide deal advisory services alongside executive search. We partner with PE firms as they evaluate deals, offering talent solutions that give them a competitive edge. We handle C-suite searches post-deal, much like Bespoke, with a focus on placing executives that drive value. Private equity firms demand urgency, and we’ve built our process to deliver on that need.

Watch Eric’s interview with Vivek!

Watch the Interview

Eric: How do you see the current deal environment in Europe?

Vivek: The first half of 2024, and the latter half of 2023, were slow for deal flow, but we’ve started to see an uptick. Europe takes longer summer breaks, but even with that, we’ve closed deals consistently over the past few months. The stabilization of interest rates, and their decline in the UK, has noticeably shifted market sentiment. As firms grow more confident in the current economic landscape, deal activity is picking up. The pipeline continues to build, and we expect this momentum to persist as companies move forward with renewed assurance.

Eric: In the US, we’re seeing executives being more scrutinous about making moves because many are tied up in deals that are either in process or just about to start. To me, that’s a promising sign for deal flow, especially now that the cost of capital seems to have topped out. Are you seeing similar trends in Europe?

Vivek:

Absolutely. CFO searches remain some of the toughest for us, and that’s because CFOs with proven exit experience are in high demand. Many of the best candidates are still engaged in their current exit processes, which makes it harder to find top-tier talent available for new roles. That said, we’re seeing more CFOs preparing for upcoming exits, which gives us hope that there will be more movement in the near future as these exits come to fruition.

Eric: One of the areas where we’ve been getting a lot of inquiries from our European clients lately is around US country manager searches. Why do you think this role is becoming so crucial for European firms looking to expand into the US market?

Vivek:

Many European firms are looking for go-to-market (GTM) subsector advisors, even at the pre-deal stage. The US represents the largest technology market globally, and for many European private equity firms, entering the US is a central part of their investment thesis. Success in the US not only offers the opportunity to scale but also brings significant recognition. A product that succeeds in the US gains credibility on a global level. The US market is both highly competitive and of exceptional quality, and breaking into it can open doors to further international growth.

Eric: Why do you think having a US firm handle the country manager search is so important?

Vivek:

We’ve invested heavily in building domain expertise and networks in our core European markets, but to succeed in the US, it takes that same depth of expertise. The US is a vast, complex market, and it requires deep sector knowledge and a real understanding of local candidates. That’s why having a partner like you is so critical—you have the talent due diligence, sector relevance, and private equity focus that aligns with what we’ve built in Europe.

And while both sides may speak English, the cultural and regional differences in the US are huge. You need people on the ground who know how to navigate them. This is why we’re excited to partner with Bespoke.

Eric: In your experience, what’s the difference between hiring a sales leader versus a general manager for the US?

Vivek:

It comes down to the investment thesis and long-term strategy. If you’re looking to establish a solid foundation for growth, a general manager with strategic acumen is the better choice. They can set up operations, manage resources, and build a balanced leadership team. On the other hand, if the focus is solely on breaking into the market, a standout sales leader with a GTM track record will serve the role well.

Eric: How important is leadership when building bridges between headquarters and new markets?

Vivek:

Leadership is key. Whether it’s a GTM executive or a general manager, you need someone who can manage the relationship between the headquarters and the new market. This involves understanding the nuances of the local market, maintaining strong communication ties, and leveraging the resources of headquarters to drive growth.

Eric: Finally, what advice do you have for private equity firms entering new markets?

Vivek:

Think big, start small, and scale fast. It’s crucial to have a clear strategy, but you also need to stay agile and learn from the market as you go. Really understand what you’re trying to achieve by entering a specific market and base your KPIs on those goals. Each market has its own dynamics and finding the leadership who can do all three—think big, start small, and scale fast—is critical. That’s where we come in, helping you find the right leaders to guide this process effectively.

Securing the Right Leadership is Critical

From my conversation with Vivek, it’s clear that securing the right leadership is critical for private equity firms looking to expand and thrive in new markets. Together, Alphaskill and Bespoke are uniquely positioned to deliver top-tier talent enabling clients to capitalize on opportunities across both Europe and the US.

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Bespoke Partners Named in Top 10 of the “Top 49 Retained Executive Search” 2-Years Running by C-Suite CV Secure.

top 49 search firms 2 years in a row - bespoke partners

About Alphaskill

Alphaskill is a specialized Private Equity Advisor & Executive Search Firm, that creates and cultivates productive relationships between Private Equity Investors and industry-leading CEOs, CFOs and Non-Executive Board Members.

Connect with Alphaskill to learn more:

Contact Us

About Bespoke Partners

Bespoke Partners is the largest recruiting firm solely focused on software and SaaS companies, and we specialize in firms backed by private equity sponsors. Bespoke Partners can help companies seize emerging opportunities by staying ahead in the software and SaaS leadership market.

Connect with Bespoke Partners to learn more:

Contact Us

Author:
Eric Walczykowski
Chief Executive Officer

Eric is passionate about building high-performing teams that value doing their best, working together, overcoming adversity and learning.

As a proven growth executive, Eric has served as CEO, President, Board Member, Investor and Advisor for technology companies that achieved over $4.5B in successful exits.

Eric brings to Bespoke Partners significant professional services experience from Deloitte and Andersen, as well as the high-growth client executive perspective for private equity-backed technology companies.

Eric earned an MBA from the Kellogg School of Management at Northwestern University and a BS in Business from Fresno State University.

Outside of work, Eric enjoys spending time with family, coaching baseball, travel, attending live events and sipping good wine.

Featuring:
Vivek Batra
Managing Partner,
Alphaskill

Vivek Batra is a Managing Partner at Alphaskill and has built their UK Practice.

He has a long international career in the Consumer, Retail and eCommerce sector, where he held various CEO/COO and NED roles in Private Equity portfolio companies in Germany and Benelux.

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Navigating the Talent Gap in Go-to-Market Strategies: Insights from Industry Leaders

by Eric Walczykowski | Aug 15, 2024 | Alliance, Blog

Navigating the Talent Gap in Go-to-Market Strategies: Insights from Industry Leaders

Authored By Eric Walczykowski

While 87 percent of CEOs agree that having the right people with key go-to-market skills is crucial to their success, only 46 percent think they have it right. Those are the findings from recent research conducted by SBI, a go-to-market (GTM) growth advisory firm.

I recently had the privilege of interviewing SBI’s CEO Mike Hoffman on the topic of an emerging gap between GTM talent and growth strategies for PE backed portfolio companies. The insights shared by Mike highlight the impact of GTM talent on a company’s ability to grow, create value and eventually exit.

Below is a summarized Q&A of my conversation with Mike.

Eric: Talk to me about the gap between GTM strategy and go-to-market talent?

Mike: If you look at the greatest growth strategy in the world tied to the greatest go-to-market operating model that you could ever have, but wrap it around bad talent, you will not get the juice from the squeeze. CEOs feel like our go-to-market talent is massively important to our growth success and our value creation success. And if you just read into it, about half of the CEOs will say, “I’m not really comfortable that we have the right go-to-market team on the ground.” You know, ramifications for that are they feel like it’s a bit of a black box. The CEOs who are the most confident in their go-to-market talent are the people who have the highest level of confidence in their CRO and their CMO.

You can see the full interview with Mike in our Tailored Talent vodcast series, here.

Watch the Full Interview

Eric: That really underscores the work that we do here at Bespoke Partners, scorecarding that CRO or CMO role, is so important. Both of us are CEOs and if we have faith and confidence in our key leaders, that’s going to flow down throughout the organization. Talk to me about getting the role design right for CROs and CMOs in an organization and how it impacts exit.

Mike: We first need to focus on alignment … alignment between the investors and the management team, and alignment within the management team. From there it is knowing your growth model, and the different levers you’re going to pull. When investing in growth it’s either market expansion or new product introduction. Lever two is about go-to-market optimization, so pricing and retention. When you pick your CMO or your CRO, the key to picking the right person is understanding what the role of growth in driving value creation is.

Eric: How do you feel about go-to-market being a primary value creation lever and aligning board composition around that on the board of directors and its influence?

Mike:

In private equity, you can make money without growth, but you probably have to be buying assets at six times EBITDA. But from a standpoint of having a person on the board that, one, understands it, two, can help the management team and specifically the go-to-market team, think differently about how they get to the outcomes that they’re looking for, and three, be an advocate on the board for the investors.

The data does suggest that if you have a growth plan, your plan will be wrong. So below are the three things you need to think about:

Constant reassessment, is the current plan the right plan?
Have multiple plans. If you only have one plan, your growth plan is wrong. If you have five plans, you are closer to right.
Planning for capacity that can take advantage of market dynamics. Set yourself up to grow when the opportunity arises.

Eric: One of the biggest mistake CEOs make is not planning for the right capacity, specifically around go-to-market talent. Talk to me about capacity planning within that context.

Mike:

You’ve got to understand the lead and ramp time for capacity. In today’s market, it might take six months to find the right leader, then another three to six months to get ramped up. So, you’ve got to be thinking 12 months in advance about your capacity planning.

Secondly, you want to make sure you have the right mix of go-to-market talent and support roles to ensure your go-to-market strategy is fully supported. Lastly, you’ve got to consider the scalability of your capacity. Can your current team scale with the growth, or do you need to bring in additional resources?

Mike’s viewpoints demonstrate the importance of confidence in leadership, the need for alignment between growth objectives and GTM strategies, and the critical role of capacity planning.

For CEOs, understanding and addressing these elements can significantly impact the ability to create value and achieve growth. As the market continues to evolve, having a robust and flexible GTM strategy, supported by the right talent and capacity planning, will be more crucial than ever for success.

Contact Us

Bespoke Partners Named in Top 10 of the “Top 49 Retained Executive Search” 2-Years Running by C-Suite CV Secure.

About SBI

SBI provides Go-to-Market Growth Advisory for innovative companies. Their unique approach to collaborative consulting comes from strategic implementors who have owned and operated marketing and sales at some of the world’s most successful growth companies.

They have developed an intimate understanding of the buyer-seller journey, which enables SBI to help actively apply relevant data, strategies, and tactics for significant outcomes.

Connect with SBI to learn more:

Contact Us

About Bespoke Partners

Bespoke Partners is the largest recruiting firm solely focused on software and SaaS companies, and we specialize in firms backed by private equity sponsors. Bespoke Partners can help companies seize emerging opportunities by staying ahead in the software and SaaS leadership market.

Connect with Bespoke Partners to learn more:

Contact Us

Author:
Eric Walczykowski
Chief Executive Officer

Eric is passionate about building high-performing teams that value doing their best, working together, overcoming adversity and learning.

As a proven growth executive, Eric has served as CEO, President, Board Member, Investor and Advisor for technology companies that achieved over $4.5B in successful exits.

Eric brings to Bespoke Partners significant professional services experience from Deloitte and Andersen, as well as the high-growth client executive perspective for private equity-backed technology companies.

Eric earned an MBA from the Kellogg School of Management at Northwestern University and a BS in Business from Fresno State University.

Outside of work, Eric enjoys spending time with family, coaching baseball, travel, attending live events and sipping good wine.

Featuring:
Mike Hoffman
Chief Executive Officer
SBI, The Growth Advisory

About Mike

Experienced executive leader with a demonstrated history of value creation through growth strategies in the technology, industrial, and software markets. Highly skilled in Enterprise Software/technology, International Business, Go-to-market Strategy, and Global Talent Acquisition.

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Bespoke Partners Welcomes New Ecosystem Partner: Ampersand Leadership Group

by Dominique Lombardo | Jul 22, 2024 | Alliance, Press

Bespoke Partners Welcomes New Ecosystem Partner: Ampersand Leadership Group

SAN DIEGO

Bespoke Partners, the largest retained executive search and leadership advisory service firm for software companies, is pleased to welcome Ampersand Leadership Group, a preeminent leadership advisory firm for private equity firms and their portfolio companies, to our partner ecosystem. In doing so, Bespoke continues to demonstrate our commitment to enhancing our partnership with our private equity clients and placed executives.

Recognizing both firms’ expertise optimizing talent to drive value for private equity portfolio companies, this collaboration will give clients streamlined access to tailored talent solutions spanning the investment lifecycle. These include leadership and organizational diligence, as well as new leader search, assimilation, onboarding, and ongoing assessment and development.

Eric Walczykowski, CEO of Bespoke Partners, adds, “Bespoke understands what private equity-backed software and SaaS businesses need from their management teams. Through our data-driven, AI-powered executive index, we source and recruit the industry’s top executives to fill open roles in less than 100 days on average, with a placement success rate of over 95%. By partnering with Ampersand, we can further invest in the success of our candidates by equipping them with direct access to Ampersand’s suite of organizational and executive assessment and development offerings.”

“We especially appreciate the holistic approach Bespoke brings to adding value for the clients they serve, whether that be during a due diligence process, in the first 100 days post-close, or mid-hold,” said Matt Richburg, Managing Partner of Ampersand Leadership Group.

“Joining this ecosystem creates a natural extension for us to support their efforts and maintain an open dialogue when we encounter clients with a need for Bespoke’s unique, direct access to the software/SaaS candidate market.”

Bespoke Partners and Ampersand Leadership Group have always aimed to build high-performing leadership teams that drive organizational transformation and generate outsized returns for their investors. Together, this ecosystem partnership reinforces both firms’ commitment to this goal and the success of their clients.

About Bespoke Partners

Bespoke Partners is the largest firm focused exclusively on executive recruiting for software and SaaS companies in the United States. The firm is the leadership talent partner of choice for public, private, private equity and venture backed software companies.

Bespoke’s unique, data-driven services complete searches in typically half the industry average time with a 95% placement success rate. The firm’s unique methodology identifies leaders who will accelerate growth and cuts the risk of C-suite mis-hiring.

Learn more at www.bespokepartners.com.

About Ampersand Leadership Group

Ampersand’s leadership advisory practice supports investors, boards, and executive teams of private equity-backed organizations to accelerate value creation. Their expertise and offerings span the investment lifecycle, from organizational and executive diligence through individual leader and team development, enabling ongoing talent reviews and dynamic action planning.

You can read more about how Ampersand partners to optimize individual and collective leadership talent at www.ampleader.com.

Contacts

Dominique Lombardo
dominique.lombardo@bespokepartners.com

Path to Exit: Ensuring Leadership Readiness in PE Portfolio Companies

by Eric Walczykowski | Jul 10, 2024 | Alliance, Blog

Path to Exit: Ensuring Leadership Readiness in PE Portfolio Companies

Authored By Eric Walczykowski

Many firms are currently facing the urgency of portfolio bloat and the need to expedite exits to reinvigorate their investment cycles. When we think of a successful and lucrative exit within private equity, we know it requires more than just strategic foresight; it demands a robust and agile leadership team ready to meet the challenges head-on.

I recently sat down with Matt Richburg (Managing Partner, Ampersand Leadership Group) to discuss the essential steps and considerations for CEOs to effectively prepare their teams, ensuring not only a smooth transition but also the maximization of value during the exit process.

Below is a summarized Q&A of my conversation with Matt.

Eric: With many firms needing to exit portfolio companies within the next 12 months, what steps should a CEO take to ready their team for this critical process?

Matt: It’s crucial to have the right foundation, starting with the end in mind. Preparing the team involves understanding their readiness, especially the top team, which includes the CEO, CFO, Head of Business Development, and CRO. However, it’s equally important not to overlook the entire organization. The exit process can erode value if not managed well. This includes ensuring readiness for the extensive diligence process and roadshows that put significant stress on various functions. More clients are now formally assessing their readiness to identify hotspots and areas needing additional support, both at the top and throughout the organization.

You can see the full interview with Matt in our Tailored Talent vodcast series, here.

Watch the Full Interview

Eric: : I agree, it’s vital to understand both the team and the value we’re presenting to the next private equity buyer. How would you assist in preparing my team for this process?

Matt: We usually start with a leadership health check, assessing the team’s readiness for the exit journey. This involves understanding the end game, timeline, key value drivers, and roles. Through candid conversations and surveys, we gauge readiness across several factors, including talent, change management, and cultural implications. This helps create a thoughtful action plan to address areas needing support. For example, if the FP&A team is already stretched, we might suggest hiring or borrowing consultants to manage the increased workload during the exit process.

preparing for an exit - leadership team readiness

Eric: In my experience, one of the biggest challenges is managing the mental readiness for the diligence process. How do you prepare teams for this intense phase?

Matt: It’s essential to prepare not only for the business aspects but also for the emotional components. The diligence process is thorough, challenging every aspect of the business, which can lead to high tensions, especially for founders with significant net worth tied up in the deal. Emotional preparation involves being ready to face scrutiny and criticism constructively. Starting these efforts early, ideally from the day the asset is bought, lays a strong foundation for the eventual exit.

Eric: As we consider exiting to a private equity firm, how can I identify the critical roles for the next phase of value creation?

Matt: Identifying critical roles is highly specific to your situation and value creation plan. It’s essential to unpack your investment thesis and value creation plan to pinpoint the key drivers. Whether it’s a technology play requiring a strong CIO/CTO or a go-to-market strategy needing a top CRO, understanding these priorities upfront is crucial. Sometimes, the most critical role could be a CHRO who drives change management and talent assimilation.

preparing for an exit - emotional and strategic preparation for diligence

Eric: How do you manage changes at critical leadership levels without disrupting the value creation journey?

Matt:

Honest and candid evaluations are essential to determine current capabilities and future needs. Tough decisions must be made decisively and empathetically. Successful organizations make these calls with clarity, ensuring that the right talent is in place for future growth. Building a pipeline of future leaders involves identifying signs of potential and providing opportunities for them to stretch and grow, ensuring they are ready for future challenges.

Eric: From my conversation with Matt, it is clear to see that the preparation of a leadership team goes beyond mere readiness for the business aspects; it encompasses emotional resilience and strategic foresight.

The insights shared by Matt underscore the importance of a holistic approach to leadership readiness, ultimately setting the stage for sustained growth and success in the competitive landscape of private equity.

Contact Us

Bespoke Partners Named in Top 10 of the “Top 49 Retained Executive Search” 2-Years Running by C-Suite CV Secure.

About Ampersand Leadership Group

Ampersand Leadership Group supports private equity, CEOs, and Boards in selecting, developing, and aligning top talent to drive growth and investor returns.

Connect with Ampersand to learn more:

Contact Us

About Bespoke Partners

Bespoke Partners is the largest recruiting firm solely focused on software and SaaS companies, and we specialize in firms backed by private equity sponsors. Bespoke Partners can help companies seize emerging opportunities by staying ahead in the software and SaaS leadership market.

Connect with Bespoke Partners to learn more:

Contact Us

Author:
Eric Walczykowski
Chief Executive Officer

Eric is passionate about building high-performing teams that value doing their best, working together, overcoming adversity and learning.

As a proven growth executive, Eric has served as CEO, President, Board Member, Investor and Advisor for technology companies that achieved over $4.5B in successful exits.

Eric brings to Bespoke Partners significant professional services experience from Deloitte and Andersen, as well as the high-growth client executive perspective for private equity-backed technology companies.

Eric earned an MBA from the Kellogg School of Management at Northwestern University and a BS in Business from Fresno State University.

Outside of work, Eric enjoys spending time with family, coaching baseball, travel, attending live events and sipping good wine.

Featuring:
Matt Richburg
Managing Partner
Ampersand Leadership Group

About Matt

Ampersand Leadership Group supports private equity, CEOs, and Boards in selecting, developing, and aligning top talent to drive growth and investor returns. Matt collaborates with clients that span the globe and invest across a rich variety of industries including financial & professional services, healthcare, technology, media, consumer goods, chemicals & industrials, and education.

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Strategic Exits: How CFOs Shape the Future by Preparing the Past

by Eric Walczykowski | Jul 2, 2024 | Alliance, Blog

Strategic Exits: How CFOs Shape the Future by Preparing the Past

Authored By Eric Walczykowski

Many in the private equity sector are gearing up g for a potential surge in M&A and exits later this year. Overpopulated portfolios are creating pressure for exits and preparations are underway in many companies.

I sat down recently to discuss this with Nick Leister, Private Equity Director for CrossCountry Consulting, one of our alliance partners delivering integrated solutions for the office of the CFO.

Here is a summarized Q&A of my conversation with Nick about exit readiness strategies for Executives, specifically the CFO.

CrossCountry is a valuable alliance partner of Bespoke Partners, particularly as it relates to our financial officer’s practice. Today, we’re going to talk about how the right CFO can create maximized value during an exit. This is a particularly important topic as we think about 2024 and the focus is on exits for private equity firms.

Eric: Nick, what are some of the diligence requirements you guys are seeing from buyers that should act as a guide for those who are looking to sell when the market picks up?

Nick: Currently, we’re seeing a significant uptick in diligence requirements in the market, with buyers digging deeper into diligence processes and demanding more from management teams. This heightened scrutiny necessitates the provision of clean and robust data sets, both current and historical, which are crucial for financial modeling and Quality of Earnings Verification (QEV) efforts. In the software and SaaS sectors, focus areas include the Annual Recurring Revenue (ARR) snowball, where buyers are keen on a detailed analysis that covers price increases and churn rates to net and gross retention calculations. This depth of information helps buyers grasp the business trends fully and build confidence in the company’s trajectory. For businesses that have grown through acquisitions, it’s crucial to standardize key metrics on an apples-to-apples basis for accurate comparison and analysis. This often requires management teams to revisit, recalculate, and redefine these metrics to ensure they’re consistently presented. Highlighted metrics such as new logo and renewal bookings, along with headcount and key vendor expenses, are areas of scrutiny. Additionally, strong support for any EBITDA adjustments is vital—gone are the days when ad-backs could be assumed correct without question. Now, a detailed schedule is necessary to justify these adjustments transparently to potential buyers, showcasing the need for each modification.

Eric: If I’m thinking about going to market, preparing for diligence and trying to get the buyer’s eye, how much time ahead would I need to engage a firm like yours to be in best stead for that acquisition?

Nick: Twelve to eighteen months is an ideal timeline to start a sell-side readiness project. It gives you time to do the right preparation in terms of cleaning up the data, analytics to support the kind of key questions that you’re expecting from buyers. And have good answers for when you approach the market on the business trends. It also gives you time to adjust in the business where you can adjust around expenses, trends and sales and get ahead of the story. So, when you go to the market, there’s a clean EBITDA for the last 6 to 12 months. where you can point to and say, this is a true run rate of where the business is going. And you have the clean data set and analytics to support that trend, thus making it less likely a buyer is going to have issues with any of the reported financials you’re presenting.

You can see the full interview with Nick in our Tailored Talent vodcast series, here.

Watch the Full Interview

Eric: One of the key things that someone like you brings from the outside is not only your expertise in the subject matter, but you’re doing acquisitions or acquisition readiness repeatedly.And so, as you’re putting that together, you can help me with that critical lens, wouldn’t you say?

Nick: I think where we approach it from is really trying to take that outside-in view of here’s where we’re seeing other buyers in the market digging in. Here’s where you want to make sure you have the right level of granularity, the right level of support as you go to market. And really being the ones who were putting people in place who have done this over and over again and provide that really kind of additional arms and legs for the CFO to feel comfortable going through the process. The aim is to work closely with third parties towards the successful execution of a transaction, recognizing there’s lots of parties involved, as well as still having to manage the day to day of the business. It’s important to have the right person sitting next to the CFO, helping to drive that process while knowing the CFO is the overall owner of this process.

It's important to have the right person sitting next to the CFO, helping to drive that process while knowing the CFO is the overall owner of this process.

Eric: When we think about the interplay between the CFO and the Project Management Office (PMO), talk to me a little bit about the roles in the acquisition preparation and acquisition process.

Nick:

The CFO is central to driving the transaction process, owning the preparation of financials, analysis, and the communication of the equity story to investment banks and potential buyers. Over the 12 to 18 months leading up to a transaction, the CFO is pivotal in crafting the roadmap, addressing critical issues, and setting priorities while providing vision for the function and ensuring the right support for the transaction. Additionally, the CFO manages day-to-day activities, contributing significantly across various areas. The PMO plays a crucial role as the right-hand person, driving the day-to-day execution of the roadmap in deal preparation. This includes supporting key analyses, managing reporting requirements to anticipate buyer inquiries, preparing for data room needs, and handling accounting diligence reports before going to market. Furthermore, the PMO is instrumental in coordinating with all third parties involved in the transaction, from Quality of Earnings providers to investment banks. This role ensures that all parties receive the necessary information promptly, maintaining the overall process flow and ensuring that internal and external coordination keeps the transaction on track.

Eric:The coordination and data gathering involved can easily be underestimated, making additional resources invaluable. This allows the CFO to concentrate on steering the process effectively, rather than getting bogged down in the minutiae. What are the risks if you don’t have the right folks in the role and what can you do to mitigate that during the process?

Nick:

The human element is vital in business processes, especially in sales where strong leadership is crucial for managing the extensive time and effort required. These processes are typically large-scale, carrying significant risks that can impact other business activities if not managed well. Competent leadership is essential to avoid prolonging these processes and exacerbating risks, ensuring that other areas of the business are not negatively affected. Leaders not only drive the sales process but also manage other significant projects and initiatives across the company. Without sufficient support, these initiatives could suffer from delays and increased stress, potentially postponing critical projects due to insufficient bandwidth to effectively manage and support them. Additionally, focus and organization are paramount, particularly through strong support roles such as a controller, FP&A lead, or a third-party PMO. These roles are critical for organizing and presenting information clearly to make a stellar first impression on potential buyers. A well-structured presentation significantly affects how investor’s view and interact with the business. Moreover, if leaders lack experience with transactions, it can introduce inefficiencies, further prolonging the process and driving up costs due to unfamiliarity with the necessary responses to transactional challenges.

Looking to hire an exceptional CFO?

Find additional information on Bespoke’s CFO practice here: High-Impact Finance Executives – Bespoke Partners

Eric: When I think about this conversation today, it was so timely given the focus on exits this year and just about the M&A process in general.

There are tens to hundreds of millions of dollars at stake and preparation is so important. Not only in maximizing value, but I think both you and I can agree on our experience of doing deals in some cases even getting the deal done and showing that you’ve got your act together you’re an asset that’s top grade and worth pursuing.

Contact Us

Bespoke Partners Named in Top 10 of the “Top 49 Retained Executive Search” 2-Years Running by C-Suite CV Secure.

Want to learn more about Bespoke’s industry leading search services for finance executive search?

Head to https://www.bespokepartners.com/high-impact-finance-executives/ for more information and contact our Finance Practice team to find out how we can help navigate your next CFO hire.

About CrossCountry Consulting

A leading provider of specialized finance, operations, and technology advisory services, CrossCountry Consulting partners with Fortune 500 companies, emerging growth market leaders, and private equity sponsors, and excels in solving today’s most pressing challenges and creating future enterprise value.

Connect with CrossCountry Consulting to learn more:

Contact Us

About Bespoke Partners

Bespoke Partners is the largest recruiting firm solely focused on software and SaaS companies, and we specialize in firms backed by private equity sponsors. Bespoke Partners can help companies seize emerging opportunities by staying ahead in the software and SaaS leadership market.

Connect with Bespoke Partners to learn more:

Contact Us

Author:
Eric Walczykowski
Chief Executive Officer

Eric is passionate about building high-performing teams that value doing their best, working together, overcoming adversity and learning.

As a proven growth executive, Eric has served as CEO, President, Board Member, Investor and Advisor for technology companies that achieved over $4.5B in successful exits.

Eric brings to Bespoke Partners significant professional services experience from Deloitte and Andersen, as well as the high-growth client executive perspective for private equity-backed technology companies.

Eric earned an MBA from the Kellogg School of Management at Northwestern University and a BS in Business from Fresno State University.

Outside of work, Eric enjoys spending time with family, coaching baseball, travel, attending live events and sipping good wine.

Featuring:
Nick Leister
Director, Private Equity
CrossCountry Consulting

About Nick

Nick brings a wealth of expertise from CrossCountry Consulting, a leading provider of specialized finance, operations, and technology advisory services. With a track record of partnering with Fortune 500 companies, emerging growth market leaders, and private equity sponsors, CrossCountry Consulting excels in solving today’s most pressing challenges and creating future enterprise value. Nick’s extensive experience in areas such as accounting and risk, technology-enabled transformation, and transaction solutions makes him an invaluable resource for understanding the intricacies of preparing for a successful exit.

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Change Management: Key Factors for PE-Backed Executives as Deal Flow is on the Rise

by Eric Walczykowski | May 23, 2024 | Alliance, Blog

Change Management: Key Factors for PE-Backed Executives as Deal Flow is on the Rise

Authored By Eric Walczykowski

Signs are that the second half of the year may see an increase in deal volume for the private equity sector. If that takes place, the shift will mean a wide range of changes for companies with private equity sponsors.

Change management as a discipline can help the leaders of these companies and the private equity teams working with them to navigate these changes.

I sat down recently to discuss this with Leslie Beale, the CEO of Profusion Strategies, one of our key alliance partners in leadership development and executive coaching.

Bespoke Partners is the largest recruiting firm solely focused on software and SaaS companies, and we specialize in firms backed by private equity sponsors.

You can see the full interview with Leslie in our Tailored Talent vodcast series, here: https://www.bespokepartners.com/tailored-talent-private-equity-talent-trends-interview-archives/

Here is a summarized Q&A of my conversation with Leslie about leadership strategies for Executives during the increasingly pressing push for exits.

Eric: Given your work with leaders in the private equity space, what trends do you see on the horizon as we see more deal activity and dry powder being put to work?

Leslie: Faster paced change. Organizations and leaders are already dealing with a pace of change they aren’t really equipped to handle. That is something that needs to be on the radar screen for key leaders in private equity as they’re moving towards more deal flow, more change for the organizations in their span of influence. Just know that your leaders are already a little bit stressed and dealing with more complexity than they’ve dealt with in the past.

Eric: When you think about the increase in the pace of change, what are some key things that leaders need to think about as that pace picks up?

Leslie: For a leader to show up and be an asset to their organization, to their team, they really need to be focused on their own self-care and their own self-awareness. So, one of the things that we know is when the level of complexity around us increases, we all start to respond from a place of insecurity and uncertainty. Leaders need to know themselves well enough to understand how they show up when the pressure’s on and some of the areas that they may need to soften. They also need to really tune into their own ability to be flexible, tap into their own stores for resilience and model those sorts of adaptability behaviors. We forget that people are looking to us as leaders. So, really showing up in that place of adaptability and resilience is crucially important.

Eric: Part of keeping the organization on task with the objective is ensuring that the people show up as their best self. I think the only way to do that effectively is to be present and calm, even though things may be crumbling or the obstacles in front of you are huge. Well, it seems like change management is a major theme for success, particularly in private equity. What is at risk in a sale or acquisition if change is not handled well?

Leslie: The first thing that’s at risk is that failed or poorly managed change can have a direct impact on valuation or the bottom line. There’s a real dollar and cents impact from failed change management. What we typically think of as the biggest impact from failed change is the people side of the house. And on that side, you’re looking at things like frustration, burnout, challenges with trust. To me, the biggest impact is that every time we fail to execute change well, we’re teaching ourselves and the organization “we can’t do change” so we adopt that mindset and that identity. And that means that the next time you need to make an important shift within the business, we’re less resilient. That sort of learned incompetence is the biggest pitfall that goes unnoticed. I’ll see organizations, five to seven years later saying they’re just not very good at change. And if we trace it back, there’s been a big, missed opportunity to execute change well, somewhere in their past.

Eric: As we talk about acquisitions in general, private equity firms are under significant pressure to exit some of their portfolio companies. When you think about the stress that an acquisition puts on the leadership team and the entire organization, I think it’s important, to lean into an outside resource, an executive coach, someone steeped in leadership development that can help you remain calm in the stress of an acquisition. Wouldn’t you agree?

Leslie:

It is important for everybody to have an escape hatch, a place where they can go. As leaders, one of the things we don’t get is an opportunity to say, I’m stressed. I need to tap out. I’m not showing up as my best. When you’re in that space as a leader, that has a cascading effect on everybody around you. And so, being able to take those emotions, needs and perspectives outside of the organization and have that same sounding board is important. And it keeps the stress from spilling over unnecessarily into the rest of the organization.

Eric: What skills do executive leaders need to focus on to be an asset to their organization during high pressure times like a sale or an acquisition?

Leslie:

We’ve talked about modeling adaptability, agility, and resilience. Managing your own stress levels, leaning into your own self-awareness so that you know when you don’t show up as your best self, which alone is an asset. The thing we haven’t touched on is communication skills. Executives tend to have a blind spot in that they are often in meetings and having conversations that employees aren’t privy to, so there’s a tendency as leaders to get worn out with an idea, and not communicate it to our teams fully enough.

I was meeting with a CEO the other day and she said, “When I’m worn out and think I’m communicating too much, I know I’m just starting to communicate enough.” And I think that’s well said because we spend a lot of time planning communication, but our employees don’t hear all that planning. We need to over communicate and lean into listening. For change to be effective, for people to show up around you in the best way possible, it takes trust, which is established through listening.

Eric: At Bespoke Partners, our executive leadership team have all done a Hogan assessment. So, we know our strengths, but also know how we show up under stress. And as the CEO of the organization, I recognize when my team members show up under stress and can manage through that.

For communication it is that realization of, we may be planning for this communication, but we are taking for granted the fact that we’ve been involved in every step. What most leaders haven’t really looked at is how these plans are going to be communicated and how the message might be received. So, I think that’s very valuable advice, particularly as we think about turbulent times in the market and this heightened awareness in 2024 around acquisitions.

About Profusion Strategies

The mission of Profusion Strategies is to equip leaders and teams with actionable skills that will put points on the board today while ensuring blue-chip success tomorrow.

Connect with Profusion Strategies to learn more:

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About Bespoke Partners

Bespoke Partners can help companies seize emerging opportunities by staying ahead in the software and SaaS leadership market.

Connect with Bespoke Partners to learn more:

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Bespoke Partners Named in Top 10 of the “Top 49 Retained Executive Search” 2-Years Running by C-Suite CV Secure.

Author:
Eric Walczykowski
Chief Executive Officer

Eric is passionate about building high-performing teams that value doing their best, working together, overcoming adversity and learning.

As a proven growth executive, Eric has served as CEO, President, Board Member, Investor and Advisor for technology companies that achieved over $4.5B in successful exits.

Eric brings to Bespoke Partners significant professional services experience from Deloitte and Andersen, as well as the high-growth client executive perspective for private equity-backed technology companies.

Eric earned an MBA from the Kellogg School of Management at Northwestern University and a BS in Business from Fresno State University.

Outside of work, Eric enjoys spending time with family, coaching baseball, travel, attending live events and sipping good wine.

Featuring:
Leslie Beale, PCC, JD
CEO, Profusion Strategies

About Leslie

Rich background in leadership development & executive coaching
Expertise in navigating the challenges of rapid organizational change and fostering resilience and adaptability among leaders

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