Let me set the scenario for you. You are a private equity firm and have just completed all of your due diligence and are closing on a founder-led business. Now it is the first day of these two teams working together. While there is a lot to do, one of the areas that needs both attention and focus is the seats on the bus. Do you have the correct people in the available seats? Most likely not, for the simple reason that the skills required from an entrepreneur in the initial phases of the business are not necessarily the same skills required to move the business forward.

After 20+ years in executive search working with Private Equity firms, I have had the pleasure of working with many firms on many finance & accounting roles and have seen what has worked well.

So, what do private equity firms need to be aware of post-acquisition in hiring? This article dives into the advice needed for this type of acquisition to be a long-term success.

Let’s get back to our scenario, and from a hiring perspective, there are several key areas to focus on to have this transaction ready to move forward. We know that the acquired team was of high enough quality to get to this point, but we need a plan for what happens if it doesn’t work out. Almost every PE firm has a 100-day plan to evaluate, but in the meantime it’s time to create the contingency plan by 1) creating a leadership succession plan, 2) identifying key performers / key employees, 3) creating the hiring plan that sets you up for the desired growth, and 4) evaluate and align the needs of the existing organization with the goals and structure of the new organization.

Let’s talk a little about the Contingency Plan:

1. Leadership Succession: Let’s begin with Strategic Definition and Profiling the Role
   1. Success Profile (This is Not Just a Job Description): Define the three (3) to five (5) year goals, the key challenges, and KPIs as opposed to a list of duties.
   2. Define Core Competencies: Identify the desired leadership traits (i.e., emotional intelligence, decision-making, change management).
   3. Corporate Culture Alignment: What is the leadership philosophy and behavioral values necessary to create a winning combination.
   4. Determine Key Missing Positions: Many acquisitions begin with a patchwork leadership team. It is likely that team members are wearing multiple hats. While evaluating the Founder, it is essential to determine if both accounting and FP&A have the right team members. Other leaders should be evaluated during this phase as well.
2. Identify Key Performers / Key Employees
   1. Meet the Team: This effort will range from leadership and sales team members to support staff and more. Identifying the key performers is paramount to the success of the acquisition and keeping continuity as you move forward. Identifying the standout members of the staff is often overlooked and trusted to previous administration to share. This is an opportunity for the PE firm to hear both success and cautionary feedback.
   2. Gap Analysis: From these meetings, it should be fairly obvious who the key performers / key employees are and ensure they have a seat on the new bus. However, it is also where you can begin your gap analysis by adding missing key members to your hiring plan.
3. Hiring Plan:
   1. Profiles: Now that you have identified the leadership and key members that will be staying with the team, it is important to build the hiring plan. An individual hiring profile should be created for each position. This is more than just a job description, it is a roadmap for recruiting to identify and attract the candidates that truly serve your needs.
   2. Employee Value Proposition: As much as you will be interviewing top candidates, they will also be interviewing you. Develop a compelling pitch focused on the opportunity to drive change, impact, and growth.
4. Alignment between Old and New Orgs
   1. Rally Around KPIs: While identifying the right team members and the new positions needed is now completed, it’s time to think about bringing the old and the new together. Create rally points and messaging that pairs old and new teammates. Use KPIs to pair team members together to align the organization.

The Payoff
When the right leader meets the right PE opportunity, the results are extraordinary. I’ve seen portfolio companies go from middling performers to market leaders, delivering outsized returns and setting the stage for blockbuster exits. That’s the magic of a well-built C-suite dream team—and it’s why I love what I do.

Conclusion
Choosing the right recruiting partner can make or break your talent acquisition efforts, especially for critical roles.
By lending credibility to your search, providing access to elite talent, and aligning the recruiter’s incentives with your company’s success, a retained search firm acts as a strategic ally in securing the right hire.

Torrey & Gray works with Private Equity sponsors to place best in class accounting, finance and executive leadership for critical positions. Contact us to discuss how we protect your investment by hiring the right talent.

Joseph Robb, Managing Partner at Torrey & Gray