The Board: A Strategic Partner to the CEO

Board members are consultative – they use their decades-long industry experience and perspective to provide guidance and suggestions on how to best drive the company forward.

Attributes Valued by Private Equity in Board Members

Deep industry expertise regarding market trends, competition, regulatory landscape, emerging technologies and other factors impacting the sector

Operational expertise with a proven track record of successfully managing and growing businesses

An extensive network of connections within the industry that can be leveraged to build-out the management team, forge new partnerships and target add-on acquisitions.

An entrepreneurial mindset that embraces creativity, innovation, adaptability and a willingness to take risks, which helps foster an entrepreneurial culture within the entire company

Skills Valued by Private Equity in Board Members

Strategic planning and marketing with ability to provide valuable insights and guidance in setting the company’s strategic direction and go-to-market strategies and tactics

Financial acumen including strong understanding of financial and operating analyses and how to assess capital allocation and new investment opportunities

Risk assessment to identify, mitigate and manage risks associated with the business

Boardroom diplomacy skills to navigate board dynamics, facilitate productive discussions, build consensus and manage diverse perspectives to achieve effective governance and decision-making

“When limited partners invest their capital with a private equity firm, they like to see knowledgeable independent advisors on the board. They find comfort in knowing high-profile people with successful track records are actively engaged.”

—Adam Coffey, 3x PE-backed CEO and author of The Private Equity Playbook