VC vs PE Boards | A must-read for aspiring CEOs

Published: Sun, 08/29/21

Private equity and venture capital firms don’t hire specific people to fill CEO roles, they hire specific solutions to specific problems.

Aspiring CEOs and experienced CEOs seeking an industry change, and who are interested in venture capital and private equity firms, will benefit from knowing what’s expected in the role. Although obvious, a crystal-clear understanding of the financials, especially cash flow and the balance sheet, is essential for the aspiring CEO.

The CEO’s capabilities--relative to the needs of the private equity portfolio company--are critical to the success of the transaction once the deal closes. Many private equity funds will maintain the current management team, but many funds want new expertise, depending on whether the acquisition has a turnaround or growth mandate.

When you know how you fit into the accountability value chain and how you can make a difference (solving a problem) for the newly acquired company, you will enjoy a competitive advantage over your CEO candidate competitors.

The CEO has several stakeholders to whom she, he, or they are accountable, including the customer. Without the customer, there is no business, and without good people (that is in high-performing employees) to help achieve the mandate of the organization, the 3-to-5-year mandate will not be achievable.

Find out about CEO performance profiles and the difference between PE and VC boards here.

On Friday, I returned from Charlottetown, Prince Edward Island (EASTERN CANADA) after a brief, but delightful, mini holiday. Charlottetown is the capital city of Prince Edward Island and is the birthplace of Canada (1867). The colorful city is a major tourist attraction for those visiting the Atlantic provinces from around the world. The city itself has both a quaint and cosmopolitan feel.

Here is a photo of me posing at the base of a beautiful tree in Victoria Park, Charlottetown.

I hope you and your family have a great week!

Respectfully,

Maureen Farmer

https://westgatecareercoaching.com/

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About Maureen:

Maureen is a global executive career coach and personal branding strategist for next-level executives and board nominees.

Westgate Executive Branding and Career Consulting Inc. would like to acknowledge that we are located in Mi'kma'ki, the ancestral and unceded territory of the Mi'kmaq People. We are all Treaty people.