When the CEO sees the Chairman’s role as an imposition …

In a series of mini reports, Directorbank explores the role of the PE Chairman – the draw, the required skill set, the opportunities and the challenges, particularly concerning the relationship with the CEO, the wider management team and the backers.

Directorbank’s current Management Team has acquired the business from private equity house Nova Capital Management and takes 100% equity ownership.

Graham Jones, Directorbank’s Managing Director who led the deal, forms part of the new leadership team alongside company directors Dorothea Kronenberghs, James Searby, George Heppenstall and Simon Thomas.

Loan finance has been provided by Enterprise Ventures, part of Mercia Technologies PLC and a leading provider of finance for SMEs. Advisors on the deal were Simon Fielder of international law firm Bird & Bird and Tony Perkins of BDO London. The transaction was also supported by Isabelle Inskip of Weightmans on behalf of Enterprise Ventures.

The buy-out provides an ownership model and capital which will accelerate the company’s ambitious growth plans. Founded in 1998, Directorbank has transformed from a focused provider of executive and non-executive directors to private equity backed buyouts to a leading source of Board and senior level talent to the wider mid-market in the UK and Germany. The new owners, each with more than 15 years of Board-level recruitment experience, have been instrumental in this growth and have invested much expertise, commitment and passion into strategic and operational development, client relationships and marketing to embed and grow Directorbank’s respected market position.

The MBO coincides with a recent London office move to Great Queen Street in Covent Garden and increased assignment activity from entrepreneurial mid-market firms requiring high calibre talent to implement change and drive growth.

Chris Pestell, Investment Director at Enterprise Ventures, comments:

“We are delighted to support Directorbank with this transaction and have been really impressed by the highly skilled Management Team, and their depth of experience in the markets that they serve. We look forward to working with the team as they build on the foundations that are already firmly established.”

 New leadership team from left to right: George Heppenstall, James Searby, Dorothea Kronenberghs, Graham Jones and Simon Thomas.

For further information please contact Nicola Hall, Head of Marketing, on 020 7255 7940 or at n.hall@directorbank.com

The Chairman/CEO relationship –

In a series of mini reports, Directorbank explores the role of the PE Chairman – the draw, the required skill set, the opportunities and the challenges, particularly concerning the relationship with the CEO, the wider management team and the backers.

These reports specifically explore the Chair/CEO relationship and encompass feedback from a recent survey of 240 experienced PE Chairmen from Directorbank’s network.

Part 7 – The attributes of a strong CEO, from a PE Chairman’s perspective

Our findings show 7 key attributes as follows:

• Leads and develops a winning team
• Clear vision and the ability to deliver the strategic plan
• Has knowledge and understanding
• Maintains trust and respect from the shareholders
• Knows own limitations
• Good understanding of the numbers and financial drivers
• Has the X factor
  
  Read Part 7 here.

Part 8 – When the CEO sees the Chairman’s role as an imposition …

Advice given by the surveyed Chairmen was:

• Understand the concerns
• Remove the threat
• Prove your worth – provide specialist knowledge; be a good mentor and sounding board; effectively manage the Board and its processes
• If all else fails, consider more extreme action
  
  Read Part 8 here.

Part 6 – The challenges of chairing a PE-backed business

In a series of mini reports, Directorbank explores the role of the PE Chairman – the draw, the required skill set, the opportunities and the challenges, particularly concerning the relationship with the CEO, the wider management team and the backers.

This report explores specific challenges of the PE Chairman role and encompasses feedback and insight from a recent survey of 240 experienced Chairmen from the Directorbank network. 

Our findings show 5 key scenarios where challenge is likely to arise. These are:

1. A breakdown in the PE investor and Management Team relationship

2. An underperforming Management Team

3. Getting agreement on the right time to exit

4. The PE investor overwhelms Management with unnecessary interference

5. The PE investor manages by numbers and lacks understanding of the business

To read the full report, download here: Part 6_The challenges of chairing a PE-backed business