Background
Our private equity client recently had acquired a founder-led business and was concerned about succession. Over the prior four years, the company had more than tripled in size driven by aggressive organic expansion coupled with the acquisition of a complementary business. With 1,000 employees, the company operated both union and non-union sites across the Mid-Atlantic, Midwest and Gulf Coast regions. Following an orderly transition, the company founder would step out of the day-to-day management of the business and assume the position of Executive Chairman of the Board. We were to find a President to succeed him. Concurrently, we were also seeking a CFO who would identify and implement the leading edge systems, processes and metrics to significantly increase productivity and financial accountability while providing the systems and human capital infrastructure to support ongoing rapid growth.
The Challenge
Recruit a classically trained President in tandem with a CFO as a strategic partner who together could reassess and strengthen the company’s operating strategy, operations, people and processes, without compromising the strong brand awareness and reputation for safety, innovation and service that had been built over many years. Their mission would be to maintain the company’s core values while delivering on commitments to increase shareholder value and maximize exit opportunities. To draft the strongest team, we gained the client’s agreement to pursue both industry veterans as well as “best athletes” with great talent and relatable experience. In addition to executing the search, we also worked closely with the founder to help get him comfortable with the transition to professional management.
Results
With the road paved and the new team in place, the transition from a founder-led to professionally managed business accelerated. The President was promoted to CEO and in two years sales grew over 60% while EBITDA more than tripled, leading to a very successful exit with the sale of the business to a strategic buyer. Following the exit, the private equity firm transitioned the core team to a new platform.
back to list