Candidate-Driven Factors Tighten Go-to-Market Talent Market

by Eric Walczykowski | Nov 14, 2024 | Blog

Candidate-Driven Factors Tighten Go-to-Market Talent Market

Authored By Eric Walczykowski

Go-to-Market (GTM) programs tend to be one of the linchpins of any value creation strategy. Looking back at the last 18-24 months, it’s been an extremely tight market for proven GTM executives, exacerbated by the lack of natural acquisition turnovers and flow. From changing candidate availability to evolving skill set demands, the GTM function has seen significant shifts in the last couple of years.

I recently sat down with Bespoke Partners’ Andrew Reynolds, Vice President at Bespoke, and Tess Fischer, Partner in Bespoke’s GTM practice, to discuss the state of the GTM executive market, the factors driving the market, the changing compensation dynamics, and the importance of a data-driven, collaborative hiring process to secure the best GTM talent.

Be sure to catch the full interview here. Below is a summarized Q and A of my conversation with Andrew and Tess.

Eric: What are you seeing in the market for GTM executives?

Andrew: Many of our recent top placements came after sell processes, but today’s market is different. Some candidates are available due to company underperformance or delayed exits, creating opportunities for leadership changes. Others are preparing for future processes. This shift shows we need to actively attract candidates with a 1 to 3 year horizon, rather than relying on immediate availability.

Watch the Interview

Eric: That notion of pulling away from something gets even more exacerbated given the time of year, no?

Tess: We’re seeing candidates get locked into their year-end bonuses that typically pay out in Q1. Clients are also thinking about budget. If you start a search now, you won’t have someone in seat to make an impact on 2024, but you’ll get ahead of 2025. We hear from clients, “we won’t know budget until January,” delaying search and making you behind in terms of hiring sales talent.

Tell me about the ability to start early and what that does for me as the executive trying to achieve the investment thesis.

Andrew:

It’s the balance of budget versus impact. If you want an executive to make an impact in early 2025, you need to start your search now. You need 2-3 months for the search process, 1-2 months for onboarding and 2025 planning. If you kick a search off too late … it’s going to be H2 of 2025 before they’re in seat making an impact.

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Eric: What are you seeing in terms of the market and the demand of skills across the GTM function? Whether it be Sales leaders, Marketing leaders, or Customer Success Officers?

Tess:

In GTM, we saw a push to place executives by fall, especially in sales. Twelve to 18 months ago, companies leaned toward broad roles like a President or CRO covering sales, marketing, and customer success. Today’s tighter market demands sales-focused executives who can balance hands-on deal management with strategic planning. It’s still a candidate-driven market, and we expect continued momentum into H1 of next year as macro trends stabilize.

Eric: You talk about a candidate–driven market as it relates to sales leaders. Of course, we’re using the relationships with the PE firms we know intimately, and the opportunity and the growth rates, but the other lever is compensation. How is this tight market getting those proven leaders affecting compensation?

Tess:

Sales leader compensation remains stable. We’re seeing clients want to get someone to make that extra push, getting creative with incentives like guaranteed 2024 bonuses rather than increasing base pay.

On the equity side, candidates are more diligent about investigating timeline to value and cap tables. Twelve to -18 months ago, candidates jumped at the appeal of offers with promises of big numbers and returns. Now, candidates are in companies where those promises don’t materialize. While a candidate’s increased due diligence extends the offer process, it’s a healthy trend that requires us to be stronger partners to both candidates and clients.

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Eric:

Absolutely. I think it really lends to the fact that we focus on GTM all day, every day. Which gives you a different perspective level of expertise and trust factor, not only with our PE firm and portfolio companies, but also with the candidate.

Eric: The other trend we reported on over the summer was the return of CMO hiring. I’ve always seen that as a leading indicator to future growth. Tell me about the spike we saw in Marketing Officer roles over the summer?

Andrew:

In 2023, marketing took a downturn. Our searches were primarily CRO and GTM. Now that the market is starting to pick back up, people are strategizing for the next 1-3 years. They’re looking to add marketing and focus on demand generation, ABM and sales correlated marketing functions that bring value.

Tess:

I had a top client say, “I feel so strongly about separating marketing and sales because marketing has gotten so complex.” To Andrew’s point, it’s focused on data and metrics and how you’re partnering with sales. He says, “I won’t work with a business that doesn’t have a CSO or CRO, but I won’t have a sales leader and a marketing leader that are peers.” I think that’s caused the spike, too, having large CRO roles that encompass marketing. Now, marketing’s taken more of a forefront. You need to pull it out and create that healthy tension with the executives.

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Eric: One of the things we talked about earlier was our focus on software, GTM, and that expertise. I recently heard our candidate response rate is 83%, where the industry is 50%. How does that show up in client and day-to-day search work?

Andrew:

It correlates to the talent we’re able to convert. The brand of Bespoke and PE-backed software is so strong. They know us, Tess or me, or our team. Candidates know we know what we’re talking about when helping our clients scope a role, what they need to focus on, and hiring a GTM leader based on what value creation leverage they’re focused on for the business.

Tess:

GTM had an amazing Q2 and Q3. We’re averaging 80 days to close, and that’s across several dozens of placements. Andrew and I recently closed a CRO search in 37 days. We’ve seen a 45-day close in GTM.

Internally we’re thinking, “What are the key signs in a search process that makes our days to close so efficient?”

Our network.

We hear about searches, and we are immediately thinking of candidates in our network that would be a great fit.

The conviction by the clients.

There’s a world where clients used to have the luxury of having options ready to go whenever. And that’s not the fact anymore.

It's a candidate- driven market.

It’s competitive. Aligning on the scorecard early, really being in lockstep with our clients and knowing exactly what they want. We have candidates at our fingertips helping us drive rapid closes.

Eric: Tell me about aligning on the scorecard early and why scorecarding makes a difference.

Andrew:

It’s what we’re really focused on finding. Sometimes that’s not immediately evident based on someone’s LinkedIn profile or bio on a company website. It’s based off of our historical knowledge of their background.

It starts with team management, what functions you want them to have, what the ELT and SLT makeup is, what strengths you’re trying to complement, what weaknesses you’re trying to make up for. When you bring this person on board, who you’re going to keep.

What levers do you really need this person to hire?

Are you SMB mid-market looking to go enterprise?
Are you channel heavy looking to build out direct?
Do you want to break into international markets?
Are you looking to drive revenue post M&A or in a multi-product platform play?
What do you really need this person to bring a playbook for into your business?

Tess:

(Jokingly): Can’t you tell Andrew just lives and breathes scorecards? I think he dreams about them, too.

One important differentiator, and this is a recent shift, is in the past 8 months or so within GTM and Sales, we’ve rewritten our scorecards to be very quantitative. We’re asking and identifying ASP and deal cycles. How many people have they managed? How many managers have they managed?

In our kickoffs, we’re asking what do you actually want to know before you get on the call with this person? We’re going to vet their background. But we’re getting very specific from a functional perspective.

Eric:

As an operator, those are the things that I care about. I’ll know that I have a strategic partner that thinks how I’m thinking versus telling me what I want to hear.

Eric: Let’s delve into the nuance around the process. Tell me about your passion for the importance of the hiring committee, identifying it, setting a process and a cadence with them.

Andrew:

It’s always best to start with the CEO or whoever the GTM leader is most likely going to report to. The conviction around their leader, excitement to follow and take the hill with them is huge. Following that is who are the other critical decision makers? Get the decision makers up at the front of your process so you can quickly align on who we want to pursue. Then have other stakeholders meet them. That way you can quickly determine how strong of a fit they are. Then go after them quickly.

At the end of the day, the market for GTM leaders is growing tighter, making it challenging to hire the best leaders in time to make an impact in 2025. The ability to quickly identify, engage, and secure top-tier talent will be a key differentiator in this tightening market. Bespoke’s deep expertise in this space, combined with its data-driven approach and extensive network, positions them as a trusted partner in helping clients build world-class GTM leadership teams.

Learn More About the GTM Leadership Practice

Bespoke Partners has been a leader in GTM executive placements for PE-backed Software and SaaS firms for over 10 years.

The quality of our placed candidates stands out, with $43 billion in enterprise value created and our placed candidates’ leadership in more than 23 successful company exits.

Learn More About Bespoke’s Go-to-Market Strategy

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:

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

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:
Tess Fischer
Partner,
Head of Go-to-Market Practice

Tess brings over 19 years of experience building and managing networks, clients and teams in private equity executive recruiting and human capital management. She has worked in and around private equity her entire career and is driven by an interest in people, organizations and the desire to build relationships that deliver results.

In her prior role as a Partner at Morgan Samuels, Tess led the firm’s Software and Tech-enabled Services practice. She worked closely with private equity funds and their portfolio companies to hire executive talent with a focus on CEO, COO, CFO, Chief Revenue Officer and Chief People Officer.

Featuring:
Andrew Reynolds
Vice President,
GTM Practice Expert

Before joining the Bespoke Partners team, Andrew worked as an Executive Recruiter for two boutique retained executive search firms where he focused on placing individuals in private equity, software, technology, financial services, industrials, and consumer industries across multiple functions.

Andrew graduated from the University of North Carolina at Greensboro with a B.S. in Marketing. While earning his degree at UNCG, he served for two years as the president of the university’s Sigma Phi Epsilon fraternity chapter.

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Why ‘Lone Wolf’ Recruiting Firms Fail and Team-Based Recruiting Wins

by Eric Walczykowski | Nov 7, 2024 | Blog, Recruiting Best Practices

Why ‘Lone Wolf’ Recruiting Firms Fail and Team-Based Recruiting Wins

Authored By Eric Walczykowski, Adam Boone

Most executive search firms follow a basic organizational structure that is more than a century old. But this old school model produces the worst possible results for clients.

It effectively makes each partner and their supporting organization into a separate entity, a “Lone Wolf” competing with others in the firm for new business, resources and search capacity.

A new model is completely changing the game with teamwork and collaboration.

Let’s explore how this innovative structure yields better search outcomes in a shorter timeframe.

And spoiler alert: it’s why Bespoke Partners is called in to solve search after search where other firms have failed.

Part 6:

The New Recruiting Best Practices Blog Series



TODAY:

How Innovative Structure Yields Better Search Outcomes

Silos Drive Traditional Search

The traditional executive search firm features the same basic organizational strategy that was the hallmark of other professional services. It’s a model that has been around since professional services partnerships emerged more than 100 years ago during the era of industrialization.

A partner in the firm will have associates, recruiters and other professionals to execute on searches attached to them in what is basically a silo. Each partner’s siloed organization then needs to address most of the aspects of the business on its own.

They need to conduct business development and new business origination for their silo. They need to orchestrate pitching and landing searches. They need to conduct candidate research and recruiting and ultimately work the searches to conclusion.

The result? Each partner is effectively a “Lone Wolf” driving their own book of business and competing with the others for search work and resources.

There may be a certain amount of sharing of new business among silos and some level of collaboration on certain searches. But partners are not incented to behave that way overall and it happens rarely.

Why Lone Wolf Silos Hurt Client Outcomes

Firms structured in the siloed, Lone Wolf way won’t tell you this, but their model produces drastically worse results for clients.

That’s because when you sign with them for a search, you effectively are getting only the attention, skills and network resources of a tiny slice of the firm.

So you might have signed with a massive SHREK search firm, but the reality is that your search will be executed by a handful of people attached to the partner booking the search. You might as well have signed with a lone independent recruiter because that is the scope of service capability and capacity you will get.

You will see only a small portion of the talent market for the role you want to fill. You will be dependent on the reputation and recruiting capabilities of only one or two people. Your search will be competing for attention with a huge number of other searches, because partners are incented to keep booking new searches as fast as they can and their silos are scrambling and overcommitted.

The results are drastically worse than they should be. Searches take too long if they are solved at all. You will access only a tiny portion of the potential talent pool. A fraction of desirable candidates will engage. Your search gets a tiny sliver of attention from a tiny sliver of the search firm.

This approach is seriously broken. But it has given rise to a new breed of search firm that is organized an entirely different way.

Eliminating Lone Wolf Siloes

At Bespoke Partners, we’ve created a structure and culture that fosters collaboration over competition by eliminating the “Lone Wolf” silos. This approach features focus, specialization, and compensation designed to encourage teamwork and collective success.

The result are vastly superior outcomes for clients, who gain access to the broadest possible talent pools and searches that are solved in the shortest amount of time.

The key aspects of this model include:

Focus on Specialization

Our partners are specialists in their functional areas, whether it’s go-to-market, product, or financial leadership. This focus ensures that each partner is deeply knowledgeable in their domain and doesn’t attempt to handle searches outside their expertise. You won’t see our go-to-market partner trying to sell you on executing a finance search—because that’s not how we operate.

Aligned Incentives

Our compensation model rewards partners and teams for delivering successful search outcomes, not for competing against each other for new business or for resources. This alignment of incentives means that everyone at Bespoke is working towards the same goal: getting it right for the client. When our clients succeed, our partners succeed, creating a win-win situation that drives collaboration across the firm.

Leveraging Collective Expertise

Our team-based approach allows us to bring the full weight of our firm’s expertise to every search. Partners and teams regularly collaborate, sharing insights and knowledge to ensure that every angle is covered, and every opportunity is explored.

Access to the Full Talent Pool

Our model combines all of our networks of executives into a unified whole, captured in our talent tracking platform of more than 600,000 high impact executives. This means every client gets unparalleled visibility into the universe of candidates who can be evaluated for a given role. No one can give you better access to the complete talent market.

How Our Model Beats the Lone Wolf Every Time

Tailored Solutions

Because our professionals are deeply specialized, they can provide tailored solutions that are precisely aligned to your needs. This level of customization leads to better fit, faster placements, and higher satisfaction for both clients and candidates.

Full visibility

You have visibility into the full talent market for every search, not the tiny slice known to a single partner.

Full Access

You have access to candidates based on all of our team’s reputation and relationships. This is why we have an 83% executive conversion rate. The best candidates take our calls and know we won’t waste their time. Your company is represented by a brand and professionals that candidates trust.

Devoted Recruiters

You get intensive attention on your search. Our recruiters are capped at 6 searches which means they will devote time and focus on your search and its nuances.

collective expertise

Our structured, collaborative approach is why we consistently achieve a 95% success rate and complete searches in an average of 95 days. By ensuring that the most qualified people are working on each search, we deliver results that are both reliable and exceptional. Our clients benefit from a collective expertise that’s unmatched in the executive search world.

These results are why Bespoke is brought in so often to solve the searches that other firms have failed to close.

Ready to leave behind the world of the Lone Wolf search firms?

Get in touch today to witness the power of the collaborative team structure.

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

Author:
Adam Boone
Chief Marketing Officer

Boone has led marketing, demand generation, branding, product management, services marketing, or alliances marketing programs for numerous successful companies including Avaya-acquisition Sipera, Sequoia start-up Syndesis, Subex, CoManage, and others. He has driven joint marketing programs and go-to-market initiatives with iconic industry leaders including Microsoft, IBM, GE, AT&T, Oracle, Comcast, Cisco, Ciena and Samsung.

Boone holds an MBA in Business Strategy from the WP Carey School of Business at Arizona State University and completed the Competitive Marketing Strategy Program at the Wharton School at the University of Pennsylvania.

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Unlocking Growth in Uncertain Times: Key Findings from the 2H 2024 Private Equity Talent Report

by Eric Walczykowski, Adam Boone | Oct 29, 2024 | Blog

Unlocking Growth in Uncertain Times: Key Findings from the 2H 2024 Private Equity Talent Report

By Eric Walczykowski, Adam Boone

As 2024 begins to wind down, one truth stands out in private equity: securing the best executive talent is the key to thriving in today’s competitive market

This month, we’re excited to release the 2H edition of our Private Equity Talent Report, highlighting the most recent trends in executive recruiting for software and SaaS companies backed by private equity.

Compensation Continues to Rise

Although the pace of increase in executive compensation has slowed, average OTE (On-Target Earnings) continues to rise due to high demand for seasoned executives in a tight market. Despite a modest recovery in sector deal flow and lower executive turnover, top-tier talent remains sought after, driving compensation upward. Mid-hold upleveling also contributes to this rise, as firms facing extended hold periods replace underperforming executives with proven leaders who command higher pay. As a result, there is no indication of softening demand or compensation for elite executives in software and SaaS.

Download Your Report

Rising Turnover in Revenue-Focused Roles

One of the most significant trends in 2024 is the heightened turnover rate in revenue-generating roles, especially among GTM leaders.

These executives are key to driving growth in a highly competitive market, and private equity firms are looking for leaders who can implement aggressive yet efficient strategies. CEO turnover is also returning to pre-pandemic levels, indicating a renewed focus on finding the right leadership to balance growth with capital efficiency. Firms are increasingly seeking leaders who can navigate complex market conditions and deliver sustainable results in a challenging economic environment.

Deal Activity and Tight Labor Markets

The recent interest rate cut in September has sparked hope for increased deal activity, with many deals already pricing in the expected change by late Q2 and early Q3. PitchBook reports a 10% year-over-year increase in middle-market deal activity, but this surge has tightened the executive labor market. Executives are hesitant to make career moves while their companies are preparing for or navigating sales, which has driven compensation upward. Both cash and equity packages reflect the competitive landscape and growing optimism around future exit valuations, signaling a cautious recovery in the market as private equity firms compete for top talent to lead their portfolios through uncertain times.

Valuation Gaps and Portfolio Management

Despite the optimism around increased deal flow, valuation gaps between buyers and sellers continue to challenge exits, particularly in the middle market.

This has resulted in longer hold periods, causing what some refer to as “portfolio bloat,” with firms managing larger-than-expected portfolios. In response, private equity sponsors are focusing on mid-hold performance improvements, especially in CEO and COO roles, which are critical for driving capital-efficient growth during extended hold periods. Leadership upgrades are being prioritized to keep portfolio companies on a growth trajectory, reflecting a long-term view of value creation even in the absence of immediate exits.

Download Your Report

Mid-Hold Leadership Changes and Ongoing Challenges

Private equity firms are also facing concerns about a potential slowdown in corporate spending, especially in the software and SaaS sectors, which makes mid-hold leadership upgrades even more important. Experienced executives are needed to guide portfolio companies through this volatile environment. Although CEO and COO turnover has increased, overall executive turnover remains below historical averages, indicating that firms are holding on to top talent during this uncertain period. This focus on retaining and upgrading key leaders is essential as firms navigate a constrained exit environment while striving for continued operational growth.

As we approach the end of 2024 and look toward 2025, the private equity talent landscape remains dynamic and complex.

While the interest rate cut offers hope for increased deal flow, persistent valuation gaps and potential headwinds in corporate spending continue to pose challenges. In this environment, private equity firms will remain focused on leadership upgrades, positioning their portfolio companies to thrive amid uncertainty.

Get your complimentary copy of the Private Equity Talent Report Market Update here: www.bespokepartners.com/private-equity-talent-report/

Get Your Report

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 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.

Author:
Adam Boone
Chief Marketing Officer

In his personal time, Boone enjoys travel, fine food and wine, mountain biking, playing and listening to music, and movies.

Did Your Recruiter ‘Quiet Quit?’ How Typical Fee Structures Incentivize Search Failure

by Eric Walczykowski | Oct 24, 2024 | Blog, Recruiting Best Practices

Did Your Recruiter ‘Quiet Quit?’ How Typical Fee Structures Incentivize Search Failure

Authored By Eric Walczykowski

It happens again and again. Our firm is brought in to take over an executive recruiting project from another firm. The search is months old but has stalled out with no successful conclusion.

The reason is simple. Typical retained search fee structures do not hold recruiting firms accountable for results. They “quiet quit” because there is no incentive to solve tough searches.

In the world of executive search, the alignment of incentives between the search firm and the client is crucial. Typical firm fees are 100% retained, meaning the full fee is due after a period of time without any required outcomes.

We think this is a mistake. At Bespoke Partners, we’ve designed our fee and compensation structure to ensure that our success is directly tied to yours.

Unlike the traditional models prevalent in the industry, our approach puts your needs first, ensuring that our partners and teams are fully committed to delivering results. In this post, I’ll break down how our unique fee structure and partner compensation model drive superior outcomes for our clients.

Part 5:

The New Recruiting Best Practices Blog Series



TODAY:

How Search Fees Incentivize Search Failure



UP NEXT:

How Bespoke’s Team-Based Approach Delivers Exceptional Search Outcomes

Quiet Quitting & the 100% Retainer

Most executive search firms operate on a 100% retained model, where the full fee is paid in three installments within the first 60 days—regardless of whether the search is successfully completed.

This model can lead to disengagement after the fee is fully paid, as there’s no further financial incentive to push for a successful outcome.

In effect, these firms will quiet quit and continue to provide updates on what seems like progress in the search. But in fact the team on your search has moved on and is not really expending any effort on finding new candidates for you.

Success Fee: Skin in the Game

At Bespoke Partners, we structure our fees in a way that aligns our incentives with those of our clients. Our model is simple yet powerful: 70% of the fee is retained, while the remaining 30% is contingent upon the successful completion of the search. This structure ensures that we’re as invested in the outcome as you are.

We have skin in the game, and are motivated to drive your searches to successful conclusions every time.

How Our Fee Structure Works

Retained Portion:

The retained portion of our fee—70%—is paid in three equal installments: on day 1, day 30, and day 60 of the search. This phased approach ensures that we are continually incentivized to push forward and deliver results, not just at the start of the engagement but throughout the process.

Success Portion:

The remaining 30% of our fee is paid only upon the successful completion of the search. This means that we don’t just get paid to start the search; we get paid to finish it successfully.

Our 70/30 model ensures that we never quiet quit. We’re fully committed to seeing the search through to a successful conclusion because your success is our success.

Partner Compensation Focused on Search Success

The way we compensate our partners is another key differentiator at Bespoke Partners. Unlike traditional firms, where partners are often incentivized to sell engagements rather than solve them, our partners are paid solely to execute your search. This focus on execution is what drives our industry-leading results.

How Our Partners are Compensated

Execution-Driven Pay

At Bespoke, our partners are compensated only for executing searches. They don’t get paid unless they deliver results, which means their full attention and effort are devoted to solving your search.

Contrast with Competitors

At many other firms, up to 60% of a partner’s compensation is tied to selling the search—30% for originating the engagement and another 30% for closing the engagement letter. This means that before a search even begins, a significant portion of the fee has already been earned, leaving just 40% of the incentive tied to actually solving the search.

The Impact on Search Quality

Focus on Results

Because our partners are paid to execute, not to sell, their focus is entirely on delivering the best possible outcome for the client. This model ensures that every search receives the full weight of our expertise and resources, leading to better results.

Why it Matters

The traditional model can lead to a disconnect between the client’s needs and the firm’s priorities. By contrast, Bespoke’s model ensures that our priorities are always aligned with yours, leading to a higher success rate and faster time to close.

At Bespoke Partners, our unique fee and compensation structure isn’t just a business strategy—it’s a commitment to our clients.

By aligning our incentives with yours, we ensure that our partners and teams are fully focused on delivering the results you need. This is why we boast a 95% success rate, an average of 95 days to close a search, and an 83% executive conversion rate—nearly double the industry average.

In our next post, we’ll explore how our team-based approach and collaboration further enhance our ability to deliver exceptional search outcomes. Stay tuned to learn more about how our entire firm works together to solve your most challenging executive searches.

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

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CEO Trends: How Shifting Market Dynamics Are Shaping the CEO Market for Private Equity Portfolios

by Eric Walczykowski | Oct 22, 2024 | Blog

CEO Trends: How Shifting Market Dynamics Are Shaping the CEO Market for Private Equity Portfolios

Authored By Eric Walczykowski

As private equity firms slowed platform acquisitions and expansion over the past couple of years, the traditional cycle of CEO transitions has been disrupted, causing a noticeable tightening of the talent market.

This evolving dynamic demands a strategic approach to leadership placement, with an increasing reliance on mentoring first-time CEOs and leveraging other operating experts to steer businesses through an uncertain future.

I had the opportunity to catch up with two of Bespoke’s in-house CEO experts, Katherine Baker, co-lead of Bespoke Partners’ CEO practice, and Jenny Gray, Senior Vice President in the practice to discuss the CEO trends they have been seeing firsthand in the market over the last few months.

Here’s a recap of our Q&A.

Eric: We’ve noticed companies delaying exits due to interest rates and slower private equity activity, leading to fewer CEO transitions. It’s starting to pick up in 2024, and the second half may see more churn. However, the market remains tight. Jenny, what’s driving this?

Jenny: It’s a mix. Fewer transactions last year had executives focused on outcomes, creating a tight market. This year, there’s more M&A, with executives more open to new roles. After successful transactions, many CEOs want to take time off with family or travel, given the tough past few years. We’re seeing more downtime, and some are considering board or operating partner roles instead of jumping into another CEO role.

Watch the Interview

Eric: So, CEOs are opting for different roles. Katherine, your thoughts?

Katherine:

CEOs aren’t just taking a month off—they’re taking 6-12 months to recharge. Some even plan to retire, but after a year, they may get bored and return to conversations. They’re selective about their next role, evaluating the business and financials closely.

Eric: That makes sense. Running a business through tough times, like COVID and uncertain markets, adds pressure. What used to be a three to four-year turnaround now feels like four to six years, with heavier decisions at every step. I understand why CEOs might prefer board or operating partner roles after an exit.

Jenny:

Exactly, and that’s why we’re seeing more board and operating roles. Businesses need experienced operators and CEOs to guide founders or first-time CEOs, adding pressure to perform. These dynamics play into the market.

Watch the Interview

Eric: I’m glad you mentioned that. We found that 27% of board members in private equity are operators, while 73% are deal partners. This opens an opportunity for PE firms to bring in more operators aligned with value creation strategies. Katherine, any insights?

Katherine:

Yes, we’re seeing more demand for CEOs or experienced operators on boards. First-time CEOs especially benefit from a strong executive chair or board member with deep industry expertise, providing coaching and mentorship. There’s been a noticeable increase in this trend.

Eric: Right, and expanding the board to include step-up candidates, paired with proven CEOs as mentors, can help solve talent shortages. Jenny, how has this strategy worked?

Jenny:

Over 50% of our placements are now first-time CEOs. They’re hungry and willing to put in the effort, and with a strong board or executive chair, we’ve seen a lot of success. These CEOs can lean on experienced leaders for guidance on M&A, scaling, and C-suite building.

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Eric: I love that. It allows private equity firms to work with successful CEOs on their next steps, using them as executive chairs or part-time partners. Katherine, your thoughts?

Katherine:

It’s a solid strategy. It helps the deal team better understand the business, leveraging these operators to identify pain points, opportunities, and strengths. Having that extra insight has been invaluable.

The evolving CEO trends signal a transformative shift in leadership, with many executives embracing new opportunities for growth and reflection, whether through time off or taking on strategic roles like board and operating partner positions.

As the market continues to adapt, there is a sense of optimism as both seasoned leaders and rising CEOs collaborate to navigate challenges, driving innovation and success in this dynamic environment.

Learn More About the CEO Leadership Practice

First Time Right Placement of CEOs, Board Members, Presidents, GMs and Other Senior Leaders Who Transform Portfolio Companies

About Bespoke Partners

Connect with Bespoke Partners to learn more:

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 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:
Katherine Baker
Partner,
Co-lead of CEO Practice

Based in Bespoke’s Austin office, Katherine co-leads the CEO practice and is a GTM practice expert to help build the executive teams for private equity backed software and technology companies. Over the last 6 years Katherine has completed over 150 searches for firms such as WCAS, Francisco Partners, Clearlake Capital, Insight Partners, TA Associates, Providence Equity, and more.

Prior to joining Bespoke in 2017, Katherine focused on recruiting Finance executives across all industries including SAAS, Biotech, Energy, and Defense from Fortune 500 companies to start-ups. She has led dozens of placement searches that have resulted in portfolio company exits, and billions of dollars of total transaction value creation.

Katherine graduated from the University of San Diego with a bachelor’s degree in finance with a minor in Spanish.

Featuring:
Jenny Gray
Senior Vice President,
CEO Practice Expert

Jenny Gray is a Senior Vice President at Bespoke Partners within our CEO & Board Practice. Jenny specializes in leading CEO & Board searches for our clients across growth equity to buyout with portfolio companies in B2B SaaS. She has also specialized in Go-to-Market and Chief Customer Officer searches. She has led over 70 successful searches since she joined Bespoke in 2019 and has placed executives across multiple portfolio companies including Thoma Bravo, Insight Partners, Clearlake Capital, K1, PSG and others.

Prior to joining Bespoke, she spent four years working in advertising and sponsorship sales at the Wall Street Journal in New York and also worked an additional two years in software and PEO sales at TriNet. Jenny graduated from Goizueta Business School at Emory University with a BBA in Marketing & Consulting and a minor in International Business.

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CFOs Play Expanding Role in Value Creation for Private Equity Backed Firms

by Eric Walczykowski | Oct 16, 2024 | Blog

CFOs Play Expanding Role in Value Creation for Private Equity Backed Firms

Authored By Eric Walczykowski

With hold periods getting longer and deal flow still in gridlock, CFOs play a more critical role than ever in driving value creation for private equity-backed companies.

I recently sat down with Nick Donlan, Parter in Bespoke’s Finance practice to discuss trends his team has been seeing, and how CFOs can be a driving for across all phases of the deal cycle.

Be sure to catch the full interview here. Below is a summarized Q and A of my conversation with Nick.

Eric: Nick, what trends are you seeing for top-tier CFO candidates looking for in their next role?

Nick: It’s no secret that finding proven, sitting CFOs has been a challenge in recent years, especially as hold periods have extended and the macro environment has remained competitive. We often encourage our clients to broaden their search, considering candidates with experience in public companies or even venture-backed environments. These candidates might not have a PE background but could still be a great fit. The key is finding someone who balances operational expertise with the ability to be a strategic partner to the CEO and the board.

These top CFO candidates often have multiple opportunities to choose from, so clients need to move fast through the interview and offer process. We’re also seeing very competitive offers right from the start. CFOs are looking for roles with different scopes depending on where they are in their careers or the current market.

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Eric: What are some of the criteria our CFO candidates are assessing during an interview process, considering today’s market?

Nick:

CFOs are doing as much diligence on the company as the company is doing on them. They want to understand the team, the market opportunity, and the state of the finance and accounting function. Are the basic reporting systems and financial structures in place? And once those are set, how can they partner across functions, especially with sales and marketing, to drive both growth and profitability? CFOs want to make sure they have the capacity to contribute strategically, particularly in areas like M&A, rather than just managing basic financial reporting, which is more the role of a controller.

Eric: Why is M&A so attractive to CFOs as part of their responsibilities?

Nick:

Many CFO candidates are drawn to M&A because it allows them to scale a company quickly. We’ve seen a lot of roll-ups recently where M&A plays a big role in the value creation plan. CFOs who have experience with due diligence, integration, and executing the playbook are in high demand. They bring structure and performance management to the process, helping drive operational excellence post-acquisition. For CFOs with a sense of urgency and a focus on continuous improvement, M&A offers a great opportunity to build something scalable, whether it’s improving customer success or expanding the go-to-market organization.

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Eric: When we talk about growth strategy and optimization, how are CFOs being asked to drive growth today, and what do you see in the next 6 to 12 months?

Nick:

The challenge for any CFO is understanding all aspects of the business, not just finance. CFOs are increasingly partnering with go-to-market teams to ensure growth is sustainable. We’ve seen companies that focused on top-line revenue growth but didn’t necessarily consider the efficiency of their sales organizations. CFOs are stepping in to revise compensation plans, ensuring that they incentivize value creation—whether through higher margins or focusing on products that will generate better multiples at exit. CFOs are helping align the efforts of CROs and CMOs with the company’s overall value creation goals.

Eric: One area I wanted to explore is capital structures. Why do CFOs find engaging with capital structures so attractive?

Nick:

CFOs thrive on the strategic side of their role, including working with the board and bankers to optimize capital structures. Securing favorable terms from debt holders or positioning the company for a successful exit energizes them. We’ve seen CFOs build strong relationships with funds, where they might handle multiple portfolio companies or move into an operating partner role. It’s a natural progression for CFOs who have successfully guided portfolio companies through exits.

Eric: That’s a great point. Strong relationships with funds often lead to CFOs being placed into other portfolio companies or taking on broader roles. How important is that network for a CFO?

Nick:

It’s crucial. We’ve seen many CFOs transition into operating partner roles after successful exits, where they help guide other CFOs in the portfolio. They bring best practices and operational improvements, which can be invaluable for driving success across multiple companies.

Eric: Another trend we’ve seen recently is a heightened focus on cash flow management. Why is that so important right now?

Nick:

In recent years, the focus has been on top-line growth, but both public and private markets are now placing more value on operational efficiency. Ensuring there’s enough cash to operate is critical. CFOs are focusing on tactical elements like reducing days sales outstanding and ensuring cash flow is optimized. While these tasks can sometimes be overlooked, they’re essential for long-term success, especially in a changing market where M&A and growth initiatives are key drivers of value.

Learn More About the Finance Leadership Practice

Best-in-Class Finance Executives in Software and SaaS Recruited in Half the Industry Average Time

About Bespoke Partners

Connect with Bespoke Partners to learn more:

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 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 Donlan
Partner,
CFO Practice

With a focus on CFO searches for private equity-backed software companies, Nick has placed operational CFOs who’ve driven exceptional outcomes on behalf of top sponsors including Thoma Bravo, Francisco Partners, and TA Associates. Nick has also been an integral part in building out executive teams at Quest, Imperva, Instructure, Insurity, Paycor, ABC Fitness, MeridianLink, Quorum Software, Redwood Software, and others.

During his 10+ years at Bespoke’s Austin office, Nick has orchestrated successful placements of high-impact executives for a wide spectrum of clients, from growth-oriented, pre-IPO companies to buyouts to complex carveouts and turnaround situations. He has experience placing executives in pre-IPO and recently public SaaS companies, including nCino, Paycor, Duck Creek, and Pluralsight.

Prior to joining the Bespoke team in 2016, Nick worked at GLG, where he supported private equity and venture capital firms in deal origination and due diligence efforts.

Nick graduated cum laude from Dartmouth College, where he received a Bachelor of Arts in Government and competed for the College’s policy debate team.

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