Searching for the "right" investments is a prime objective for PE firms. Armed with nearly $500 billion worldwide in "Dry Powder" or cash reserves, they are seeking acquisitions with enterprise values from $10 million to $500 million. But these targets must demonstrate their ability to execute outstanding customer service, respond to challenges, and have leadership qualities that inspire loyalty.
The Private Equity Funding article by Jim Dimitriou and Joe Burkhart in the July/August 2011 edition of Financial Executive, reveals additional information, such as the PE firms are focused on mature businesses that can be grown to substantially improve earnings and then sell within a 3 to 10 year period, at a significant profit.
A major role for the CFO is to protect the organization from employee defection. Senior support staff often leaves at the most critical time periods, like mergers, acquisitions and other intensive transition periods. The entire C-suite and especially the CFO must execute leadership plans of not only accountability, but of retention through motivation, which will be directly associated with ensuring that EBITDA and other goals are achieved timely.
