General Manager in the services sector (investment group)

An investment group acquires a service company to create, from there, a buy & build operation in the sector.

The investment group has postponed the search for a CEO to lead this operation for several reasons. First, it felt that to fully define the CEO’s profile, it would be preferable to gain a deeper understanding of the team and the business. Second, the timeline for the analysis and negotiation required to finalize the acquisition would not have allowed for the appointment of an executive.

QMT Solution

The investment group decided to hire an interim manager as CEO. The interim manager’s objectives are multiple.

• First, he needs to take the reins of the company and reassure the staff in order to maintain the business.
• Next, the team needs to be evaluated, and a steering committee created to improve corporate governance. As a result, the company’s organizational chart is modified to specialize each area and maximize its contribution to the business. The aim is also to provide the company with a more scalable structure to grow organically and integrate new future businesses.
• The next step is to prepare a budget for the following year, involving the new management committee. The goal is not only for the budget to be known and shared throughout the organization, but also for each department to feel responsible and committed to achieving its assigned share.
• Finally, the interim CEO helps define the profile of the new CEO. Thanks to the achievements at this stage, the new CEO’s characteristics can be better aligned with the objectives of the strategic plan.

Once the new CEO is hired and has joined, the interim manager makes a transition of several weeks to transfer knowledge before leaving the company.

Results

According to the private equity fund, the decision to hire an interim manager has had several advantages:

1. Firstly, it has helped that, during the purchase process of what has been their first investment in the sector, the partners have been able to concentrate on the analysis and closing of the operation.
2. During the transition period, the interim manager has adapted the organization’s culture, structure and way of working, incorporating best practices in corporate governance, and preparing the company to face a new stage of organic growth and integration of new companies.
3. The interim manager has helped to define with greater knowledge and precision the necessary profile of the chief executive.
4. Finally, a robust selection process has been carried out, without time pressure, avoiding hasty decisions.