When a private equity firm adds a new company to its portfolio, analysts rigorously size up its financial, operational, and competitive condition. Yet even with all that knowledge and effort, many private equity companies still don’t do a good job when it comes to deciding whether to keep the CEO in place or select a new CEO.
The Mistakes PE Firms Make When They Pick CEOs for Portfolio Companies
They overvalue smarts and urgency.
September 06, 2016