3 Ways Private Equity Changes the Game in Recruiting

Private Equity Executive Recruiting

Private equity (PE) firms are often unfairly perceived as takeover specialists, only concerned with numbers on a spreadsheet and finding exit strategies that lead to big buyouts. Employees of a PE firm’s portfolio companies also fear layoffs, thinking the PE firm will ultimately “get rid of everyone” in preparation for selling off companies.


But PE firms’ approaches to hiring and managing talent tell a different story. A recent study conducted by Ernst & Young and Private Equity International (PEI) found that 51% of PE firms believe retaining talent is the top issue to remain competitive in the marketplace, while 53% ranked developing personnel as one of their top objectives over the next two years.


180one has witnessed this emphasis on talent firsthand in our work with several PE-backed clients over the past few years. Today on The Water Cooler, we look at how PE firms are having a positive impact on the recruiting world in the first article of new series about private equity and executive search..


From Buy & Sell to Buy & Transform

While corporate ownership in the US has shifted from public to private over the past few decades, PE firms have also evolved how they bring in and manage their portfolio companies. A 2016 article from Harvard Business Review explains how, in this new phase of PE ownership, firms must bring more than financial discipline and strategic expertise to their portfolio companies.


PE firms experience both winners and losers among their investments. When looking at their portfolio companies’ performances, they have started recognizing the importance of talent in creating a strategic advantage that leads to success. Today’s PE firms realize that they aren’t just buying a legal entity when making new investments; rather, they also acquire a management team and organization of people equipped to execute the company’s plan.


Now PE firms have begun to place more value on acquiring and retaining talent, strengthening HR practices and innovating the organizational operations of their investments in order to keep that strategic advantage.


Bringing Sophistication & Expertise to the Hiring Process

Engaging in their portfolio companies’ hiring processes used to mean that PE firms would leverage their network to identify talent or be actively involved in interviewing and selecting candidates. Today’s PE firms, on the other hand, emphasize the importance of strong recruiting and HR processes by investing in and sharing best-in-class hiring practices across their portfolio.


PE firms originally drove savings by consolidating shared resources such as Audit, Banking and Legal services via contracts with preferred vendors. Now they take a similar approach by investing in Talent Management services that they deploy across their portfolio when needed.


This approach provides smaller companies who possess nascent HR functions access to new tools and practices, including behavioral assessments to truly evaluate candidates and compensation benchmarks to remain competitive in the marketplace. PE firms also invest in building relationships with executive recruiting firms, vetting these firms and negotiating favorable terms on behalf of their portfolio.


Injecting this knowledge and sophistication into their portfolio ultimately evolves the holding companies’ hiring practices and offers them a “leg up” in attracting top candidates.


Experienced in Recruiting C-Level Talent

PE firms invest in dozens of companies, giving them insight into C-level leadership across a variety of organizations and industries as well as a plethora of expertise in recruiting the right candidates for those positions.


Through their previous experiences, seasoned PE executives are able to identify the appropriate balance between soft and hard skills needed in a C-level candidate and often have a better understanding of the existing talent pool. Although they may not make the final hiring decision, PE firms nevertheless are able to advise their portfolio companies during the recruiting process and ensure that they select strong leadership.


As PE firms shift their focus from financial fixes to company transformations, their emphasis on talent management and sophisticated processes has allowed their portfolio companies to evolve as well, boosting them to a new playing field when it comes to competing for candidates.


Interested in reading more about PE Firms and recruiting? Consult these resources:
5 Reasons Strong Talent Management is a Top Priority for PE Firms
 | How Private Equity Firms Hire CEOs


And don’t miss 180one’s work with some of our PE-backed Clients: Columbia Distributing | Owen Equipment | OFD Foods

By Catherine Landgraf December 31, 2024
Senior Vice President of Operations ABOUT THE COMPANY A-dec is the premium leader in the dental equipment industry designing and manufacturing products that span dental chairs, lights, handpieces, furniture, air management, infection control and delivery systems found in dental offices and operatories. With over 1300 employees, and headquartered in Newberg, Oregon, A-dec’s familial culture and values have been attributed to their commitment to the Newberg community and its employees through various investments and programs. ABOUT THE POSITION The Senior Vice President of Operations is responsible for leading A-dec’s Manufacturing, supply chain, and planning functions to create a competitive advantage for the company for both existing and new products. Leading a team of Directors and Managers, this position ensures the continuing advancement of quality performance, cost effectiveness and safety of the manufacturing function while developing new ways to improve the service level for customers and meet the financial objectives of the organization. The Senior Vice President of Operations manages the manufacturing, supply chain and planning functions to ensure continuous improvement, employee engagement and talent development. DUTIES & RESPONSIBILITIES Participate as an active member of the executive leadership team providing the vision, leadership, and roadmap necessary to achieve the company’s strategic initiatives consistently and predictably. Define and communicate the vision for Manufacturing and visibly champion current and long- range objectives or programs to ensure successful implementation. Develop annual Manufacturing objectives and ensure tactical plans are executed throughout operations along with aligning metrics, employee goals, and visual dashboards to ensure business objectives are met within operational and regulatory boundaries. Define the skill sets and training programs required to produce increasingly complex products and maintain an effective talent base across the manufacturing, supply chain, and planning teams. Define and establish staff planning parameters necessary for effective operation of Manufacturing processes to include shift schedules, staffing levels, overtime limits, temporary employee ratios, etc. Provide direction, leadership and guidance to ensure relentless focus on delivering results and engage and empower team members to create a culture of safety, quality, continuous improvement, and personal development. Lead the development and implementation of the Manufacturing expense and capital expenditure budgets. Oversee the Manufacturing capacity plan and optimize utilization across Manufacturing while ensuring the production plan is achieved and meets the sales forecast in a timely manner. Lead Manufacturing Engineering in the transformation and optimization of Manufacturing areas to maximize quality, safety and operational efficiency. Lead the Supply Chain team on Production Planning and supply chain requirements to meet customer demands. Collaborate with cross-functional development teams to continuously achieve successful implementation of new or improved manufacturing systems and ensure utilization of capable, cost-effective production processes for manufacturing operations. Partner with Product Development and New Product Introduction (NPI) teams to ensure new product and innovation projects are executed as planned implementing manufacturing processes and testing to proactively resolve identified process capability conflicts. Work collaboratively across the broader organization to leverage corporate resources and align Manufacturing with top level initiatives. Mentor and coach talent across the business to ensure the organization is developing a pool of operational leaders. MINIMUM QUALIFICATIONS KNOWLEDGE, SKILLS AND ABILITIES Ability to create and communicate vision as well as understand the big picture and translate to application Ability to proactively identify, anticipate and resolve problems and be comfortable relying on instincts to make decisions Ability to work cross functionally with all levels of the organization Ability to motivate and engage the workforce, create effective teams and build peer relationships Ability to create and implement strategies Ability to initiate self-development Comprehensive knowledge of quality management systems/ISO, lean manufacturing, and the product development process Advanced oral and written communication skills with public speaking experience EDUCATION AND EXPERIENCE Bachelor’s degree in business or engineering along with relevant work experience required, MBA or M.S. in related field preferred At least 15 years of progressive leadership experience with 5+ years in a senior leadership position managing a similar scope and sized operations and manufacturing team. Experience in strategic planning for organizations of similar size and/or scope as well as managing the vision and purpose of a division and or business segment of an organization Strong project management experience Experience in mergers and acquisitions preferred Experience managing a vertically integrated operation preferred Experience leading corporate-wide projects or initiatives Medical device industry / dental or medical device fields experience preferred Experienced in establishing partnerships with other companies and external organizations preferred Interested in Learning More? 180one is a retained search firm and has been engaged by A-dec to manage this search. If interested in learning more about the opportunity, please contact Tom Haley / 503-334-1350 / tom@180one.com
By Catherine Landgraf December 30, 2024
We are pleased to announce we have recently been recognized as one of Oregon’s Most Admired Companies. The Portland Business Journal sent a survey to some 3000 CEO level executives asking them what companies they most admire in 10 different categories. 180one was selected as a finalist in the Recruiting/Consulting category and invited to attend the awards ceremony, where we stood out with the 9 th place spot. It was a great event to be honored at, and share the moment with our clients who were also recognized in the Top 10 of their respective categories such as A-dec, Hyphn, Salt & Straw, Leatherman, Columbia Sportswear, and R&H Construction.  When we started 180one in 2007, our main mission was to help Portland businesses grow and thrive by providing them the access to the executive-level talent they deserve. And do it in a way that allows us to truly partner with our clients and build relationships with them outside of any of the searches they engage us on – since we work and live in the same community as our clients. 17 years later, to be recognized today as a Most Admired Company by our clients is a testament to our team’s professionalism, how they’ve partnered with our clients, and the work they’ve performed on our clients’ behalf. Thank you to our clients for your support over the past 17 years, and we look forward to being your search partner in the years to come.
By Catherine Landgraf December 18, 2024
180one is pleased to announce our recent partnership with VSG and the resulting placement of their new Vice President of Sales and Business Development! Dover’s Vehicle Service Group is the global leader in designing and manufacturing vehicle service, collision and automotive OEM equipment. It is one of the founding companies of Dover Corporation, an eight billion dollar diversified global manufacturer. VSG consists of fifteen leading vehicle lifting brands (Rotary, Forward, Blitz, Ravaglioli etc.), collision repair (Chief), wheel services, diagnostics (Butler, Rotary, Chief and Ravaglioli) and tier-one automotive brands (WARN Automotive) with operations worldwide, including regional business operation centers and large manufacturing facilities in the U.S., Europe and Asia. Congratulations to VSG!
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