Interim Usage Within Private Equity Firms

What is interim management?

Interim use refers to the practice of bringing in temporary management to oversee the day-to-day operations of a company in transition. This could be due to a merger, acquisition, or restructuring exercise. Interim management is not a new concept, but its use within private equity has gained increasing popularity in recent years. In this blog post, we explore why interim use has become a key strategy within private equity and its potential benefits.

Why is interim use becoming more popular

Interim management has always been used by businesses to fill leadership gaps, usually for short periods. However, in the private equity space, interim use has taken on a more significant role. The reason for this is that private equity firms have a vested interest in quickly turning around the companies they invest in to generate returns for their investors. Interim managers are often brought in to implement a specific plan that can help achieve this turnaround faster.

Interim managers are experienced professionals who are accustomed to managing change. They have a wealth of experience in managing complex projects, managing people, and delivering results. They are typically brought in to help with a specific task, such as cost-cutting, improving operational efficiency, or preparing the business for sale. This is usually done within a specific timeframe, with the interim manager setting targets and milestones to help achieve the desired outcomes.

Benefits of interim use within private equity

  • Expertise - One of the primary benefits of interim use within private equity is access to the expertise of experienced professionals. Interim managers bring a wealth of experience from a range of industries and sectors. They are used to dealing with complex business challenges and have the skills and expertise to quickly identify the root causes of problems and devise a plan to address them. This means that private equity firms can tap into this expertise to help them achieve their goals faster.
  • Speed - Interim managers are often brought in to implement a specific plan within a short timeframe. This means that they need to act quickly and decisively to achieve the desired outcomes. They are used to working in high-pressure environments and can quickly assess the situation and take the necessary actions to move the business forward. This means that private equity firms can achieve their goals faster, whether that is turning around a struggling business or preparing it for sale.
  • Flexibility - Interim managers are brought in for specific tasks and can be released once their job is complete. This provides private equity firms with a great deal of flexibility, allowing them to scale up or down their resources as required. This means that private equity firms can quickly respond to changing market conditions, without having to commit to long-term employment contracts.
  • Objectivity - Interim managers are often brought in to provide an objective perspective on a business. They are not bound by the politics or culture of the business and can provide an impartial view on the issues at hand. This can be particularly valuable in situations where there are conflicts of interest or entrenched attitudes within the business.
  • Cost-effective - Interim managers are usually paid on a project basis, meaning that private equity firms only pay for the work that is required. This can be a cost-effective way of accessing expertise and resources that might not be available in-house. Interim managers are also typically highly efficient and can achieve their goals within a shorter timeframe, meaning that private equity firms can achieve their goals faster and more cost-effectively.

An interim CFO or finance director can be a valuable resource for private equity firms. They bring a wealth of experience and expertise to the table, enabling them to quickly identify the key financial issues facing the business and devise a plan to address them.

Blackwaters Interim Management Expertise

Blackwaters are the leading talent acquisition partner for finance roles within private equity-backed businesses. We have extensive experience sourcing the best interim CFO’s and permanent finance directors and are relentlessly proactive in approaching talented finance people, we can help you to recruit the right team to take your business to the next level.

Nick Bastin (VP Finance) from TD Synnex UK said: “Blackwaters and I have been working together for over 6 years finding and placing great talent within the organization.  Finding the right skills and personality traits is key to ensure a great outcome for both the candidate and company.  Blackwaters and the individuals within really take the time to find out the true requirements, asking the right questions to ensure all avenues and scenarios are carefully considered. This tailored approach is a key differentiator.”

Get in touch with us today to find out more about our interim management services.

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