How to do interims want to work with PE funds over the appointment’s lifespan?
Once a project is up and running, interims seek a ‘happy medium’ when it comes to contact with the PE fund, far preferring weekly catch-ups or ones every other week (38%) to twice-weekly (7%) or even mothly (22%) meetings. Of course, the ‘ideal’ frequency of contact is likely to vary over the course of the relationship. In distressed situations, many of the PE firms we spoke to said that they’d want frequent weekly reporting catch-ups in the early stages of the appointment, ideally face-to-face, but would be happy to relax this as the appointment progresses. When it comes to setting-up the parameters of the appointment, the majority of interims seek a collaborative partnership with PE funds. Nearly nine in ten (88%) want to work with the fund to set KPI and reporting metrics – which PE funds tell us they are happy to do at an early stage – and a similar proportion (87%) see it as a joint responsibility to find the interim’s successor once their role is done. However, there are areas where interims are far more likely to seek autonomy. When it comes to day-to-day decision making, they prefer a PE fund to remain in the background but to be supportive of their decision (14%) and believe that a PE partner should be aware of, but in the backseat for, any decision about fundamental changes to a management team (63%). Broadly, face-to-face contact is preferred (18%), although many interims are happy to submit regular written reports (15%).
The FRP view
The over-riding message here is that interims want to be trusted to get on with the job. This reflects our experience. However, interims need to respect the PE firm’s own position and its responsibility for its portfolio company. The best relationships work in a way that allows the interim to apply their skills with discretion while also ensuring the PE backer never feels out of the loop on progress. It’s encouraging to see interims recognise that they have a role to play in appointing their successor once their work is done. We often find that a business’ management teams don’t always have the skills to find and interview candidates for these roles themselves, and this is a final point where an interim can really add value. Ultimately, they’re not trying to find a replacement for themselves – they’re looking for someone with the right skills to execute on the next stage of the business’ strategy. As the person often responsible for setting the firm on this path to growth, they know intimately what, and who, is most likely to help the business succeed. It’s also considerate behaviour that rounds off the appointment on a good note, helping their chances of re-appointment in the future.
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