Archive for Month: February 2024

Written by:  The PE Guru – Gerald Moran O’Dwyer, III – Blackmore Partners, Inc.

• In the highly competitive world of Private Equity, understanding the timeline of a firm’s operations is of utmost importance if you aspire to secure a management role. Most firms operate within three distinct 18-month time periods when acquiring a company, and having insight into this timeline can significantly improve your chances of landing a desirable role.  

• The process begins even before the actual 18-month period, during the pre-period or the LOI (Letter of Intent) phase. This phase is crucial as the current company owner and management assess whether they will stay on after the acquisition. If the owner decides to depart, establishing a positive relationship with the PE firm during this phase becomes critical, as they will be on the lookout for a suitable replacement as soon as possible. Without having nurtured good communication with the PE firm during this phase, your chances of being considered for a role diminish significantly.  

• The first 18-month period after the acquisition is when the PE firm evaluates the existing talent within the acquired company. They determine which positions need to be replaced and which can remain. Usually, during this time, new CFOs, controllers, or VPs of finance are hired, depending on the company’s size. Additionally, the firm starts searching for operators and one to two board members.  

• In the subsequent 18 months, the focus shifts to searching for new add-ons and concentrating on the company’s growth. The PE firm has built relationships and a list of potential companies for add-on acquisitions. During this phase, the firm is also more willing to replace a larger portion of the management team if they are not meeting expectations.  

• The final 18 months of the timeline are centered around preparing the acquired company for a potential sale. Activities during this phase include conducting road shows, engaging in discussions with strategic partners, and potentially hiring an investment banker. As an executive looking to join the company, it is crucial to know when a new platform has been acquired so that you can market yourself to them promptly and increase your chances of securing a role. 

• However, gathering all this information and staying updated on changes in Private Equity platforms and add-ons can be challenging on your own. This is where BlackmoreConnects comes into play. They provide members with worldwide databases that are continuously updated with changes in Private Equity firms and their activities. These databases also contain the contact information of the involved Private Equity firms, making it easier for you to reach out to them at strategic times of hiring.  

• BlackmoreConnects not only offers updated data but also equips members with email and phone templates designed by executives for executives. These templates enable you to market yourself effectively and showcase the qualities that firms seek in candidates. Depending on where the company is in its ownership cycle, BlackmoreConnects provides a range of methodologies for positioning yourself as a potential board member, sponsor, or any other position you may be interested in. 

• The data gathered by BlackmoreConnects suggests that to stay competitive, executives need to actively market themselves to at least 200 to 400 Private Equity firms on a weekly basis. However, managing this level of complexity and communication can be time-consuming. To alleviate this burden, they recommend using communication automation software like Refer.com, which can save you valuable time and effort.  

Conclusion: 

In the highly competitive world of Private Equity, being ahead of the curve is essential, and BlackmoreConnects offers the necessary tools to achieve that. By utilizing their resources and staying updated on relevant news, you can position yourself ahead of the competition and increase your chances of securing the desired role. To learn more about BlackmoreConnects and how it can benefit you, visit their website at blackmoreconnects.com.