Establishing an effective partnership and achieving improved outcomes for investors and management teams during the hold cycle
Private equity represents a productive and fast-growing asset class'building businesses, creating jobs, and providing unlimited opportunity for investors and management teams alike, particularly if they know how to work together in candid and effective partnerships. Restructuring the Hold demonstrates how investors and managers can best work together to optimize company performance and the associated rewards and opportunities for everyone, not just the investors.
Through brief references to the parable of the Gramm Company, a middle market portfolio company, readers will follow the disappointments and triumphs of a management team experiencing their first hold period under private equity ownership, from the day they get purchased through the day they get sold. Restructuring the Hold provides the reader both general knowledge and more detailed better practices and frameworks relating to specific time periods during the hold. Within this book readers will find:
An examination of a typical middle-market private equity hold period
Guidance for newly acquired management teams on what to expect during the hold period
Descriptions of better practice operating cadence between investors and management teams
Examples of effective partnerships between investors and management teams
Discussions of topics relevant to typical hold periods, including organizational structures, operations improvement, selling pipelines and acquisition integrations
With guidance from Restructuring the Hold, private equity principals and portfolio company executives can take steps toward greater collaboration and better outcomes. Through updated practices and strong relationships, they can partner effectively to improve portfolio company performance, which will lead to better outcomes for both investors and management teams.
Preface
About the Authors
Introduction
Core Audience, Organization of the Book
Chapter 1: Private Equity
The Asset Class, The Middle-Market, The Investment Cycle, The Motivation
Chapter 2: New Ownership
The Ideal Partnership, Anticipating Management Sentiment, Key Investment Period Roles, Operating Partner Involvement, Core Values
Chapter 3: Month 1, Consternation
Onboarding Together, Confirming Portco Leadership, Teaming Authentically, Overcoming Resistance
Chapter 4: Month 2, This Might be Okay
Baselining the Investment Period, Reporting Monthly Financials, Starting with Momentum, Identifying Value Sources
Chapter 5: Month 3, Guarded Enthusiasm
Generating and Aggregating Ideas, Evaluating and Prioritizing Opportunities, Profiling and Planning Initiatives, Suspending Strategic Planning Formalities, Finalizing the Value Creation Plan
Chapter 6: Quarter 2, A Bit Overwhelmed
Ensuring Leadership Coverage, Organizing the Value Creation Team, Managing the VCP Program, Targeting, Tracking and Triaging Value Creation
Chapter 7: Quarter 3, Gaining Momentum
Managing with Performance Indicators, Standardizing Operating Cadence, Incorporating Board of Directors, Overcoming Bumps in the Road
Chapter 8: Quarter 4, Ringing the Bell
Confirming VCP Results, Rewarding Success, Planning Strategy Pragmatically, Integrating Plans and Budgets, Embracing a Continuous Performance Cycle
Chapter 9: Year 2, Improving Infrastructure
Organizing Effectively, Operating Efficiently, Sourcing Strategically and Spending Economically, Financing Internally
Chapter 10: Year 3, Expanding Beyond
Optimizing Profitability, Pricing Intelligently, Pipelining Systematically, Integrating Pragmatically
Chapter 11: Year X, The Exit
Exit Timing, The Exit Process, Exit Preparation, Enjoying the Rewards
Chapter 12: Conclusion
References
