The Four Positions a Portfolio Company CEO Must Be Able to Play

Last year saw nearly 3,000 mid-market PE deals, according to PitchBook, and many of the incumbent CEOs involved in those deals have already been shown the door. With shorter holding periods trending, companies must generate value in the first 12-18 months, or they put the deal thesis at risk. It’s difficult if not impossible to make up for any value you fail to generate in the critical first few months.

TBM Managing Director, Shannon Gabriel, recently identified four hats every private equity-backed, portfolio company CEO must wear. To make changes at the top fast, PE firms need an effective means of sizing up the capabilities of an incumbent CEO during the pre-LOI phase of the deal. That starts with knowing exactly what to look for.

Learn about the four positions every portfolio company CEO must be able to play:


4 Roles of an Effective Portfolio Company CEO


If the CEO can’t play all the right parts, don’t wait to make a change. Spending some time during the due diligence phase to assess the CEO’s capabilities in four critical areas is one of the most important steps you can take to ensure the success of your deal thesis.

Shannon Gabriel will also moderated a panel discussion on this important topic at the Private Equity International Operating Partner’s Conference in October 2019.