The recruitment process

The process of recruiting senior executives for private equity-backed businesses pre-acquisition is less formal and structured than traditional executive ‘headhunting.’ Senior executives are often approached well ahead of a planned buyout, and are often asked to work in an advisory capacity with a private equity firm that is considering the transaction. This can be a fluid and pressured situation that calls for rapid decision-making. It is also a valuable opportunity for candidates to evaluate the business, the private equity sponsor, and their own future as both a shareholder in and manager of the proposed buyout company.

During this time, the private equity firm concerned will be making its appraisal of the candidate. The bidder’s retained executive search firm will conduct in-depth referencing with a wide variety of business contacts, and the fund may also commission psychometric tests. The private equity firm will also be able to make its own assessment based on the individual’s contribution to the bid process. 

Recruitment of senior executives post-acquisition is usually less time-pressured, but equally rigorous; the process is the same as for any high-level executive search.

Both pre- and post-acquisition, private equity firms understand the need for absolute and total confidentiality, which affects their vital interests as much as it does those of candidates.