Aligning Culture in M&A: The Overlooked Drivers of ROI and IRR – A Report from ACG New England Conference 2025

Setting the Stage: ACG New England 2025, Newport

By Clark Waterfall, Managing Director | Talent Sequencing LLC

In early September 2025, private equity investors, dealmakers, and business leaders from across the Northeast gathered at the Newport Harbor Island Resort for the ACG New England Conference—the region’s premier event for the lower middle-market community. Hosted annually by ACG Boston and ACG Connecticut, the conference is famed for fostering candid discussion on the complexities and opportunities in private equity.

A highlight of this year’s event was the “Aligning Culture in M&A” panel, where I was joined by Rena Clark (Principal, AlignPath Advisory), Michael Duffy (Vice Principal, Fort Point Capital), and moderator Ben Armour (Partner, Sullivan & Worcester). Together, we explored the often-undervalued impact of cultural alignment, leadership fit, and values in shaping investment outcomes—topics especially salient for today’s value-focused investors.

Why Culture Matters in Deal Diligence

Acclaimed “father of modern management” Peter Drucker famously said, “Culture eats strategy for lunch.” For middle market private equity sponsors, financials may get a deal to the closing table—but culture and its invisible parent, values, determine post-close performance and long-term returns.

As Harvard Business Review has noted, PE professionals seeking faster closes and sustainable value creation must learn to “speak the language” of founder/owners—grounded in a nuanced appreciation of company culture. Mere operational or financial expertise is insufficient; understanding what genuinely drives behavior and engagement is now essential.

Seeing Below the Waterline: The Iceberg Model

Culture is best captured through the iceberg metaphor:

  • The 10% above the waterline: visible behaviors, rituals, and norms—what companies say and do overtly.
  • The 90% beneath the surface: deeply held values—what organizations reward, tolerate, or punish, beneath the surface.

McKinsey defines culture as a company’s shared values, behaviors, and work norms. Critically, Boston Consulting Group research shows that transactions robustly diligencing culture (not just financials and operations) generate ~9% more shareholder value in the first 24 months compared to those with less discipline in this area.

What does it mean to diligence culture? Start by examining:

  • What is rewarded and punished?
  • How are disagreements surfaced and resolved?
  • Which values animate management, and do they cascade throughout the leadership team?

Key Lenses for Culture & Values in Middle-Market PE

PE sponsors should rigorously assess cultural alignment along several axes:

  1. Platform company readiness:
    • Is the new platform able and willing to embrace needed changes?
    • PE assumes transformation; resistance to change among management or the broader organization is a leading cause of value erosion.
  2. Leadership team alignment:
    • Are individual managers culturally and values-aligned with the platform leader or founder?
    • Misalignments frequently foreshadow costly CEO/CFO changes soon after close, especially if leadership styles or priorities clash.
  3. Add-on/tuck-in integrations:
    • For buy-and-build strategies, are the culture/values of the add-ons and platform company genuinely compatible?
    • Will projected synergies materialize, or will “integration friction” undermine value capture?
  4. Sponsor/portfolio company fit:
    • A mismatch in ethos between the PE sponsor and platform company breeds a high “coefficient of friction” throughout the hold period, sometimes resulting in C-suite turnover simply to achieve alignment.
    • Notably, this alignment can vary partner to partner within a PE fund—a nuance often missed in diligence.
  5. Planned leadership changes:
    • Many PE investments involve top-grading management (e.g., replacing the CFO or bringing in a known CEO).
    • New leaders must be evaluated for culture/values fit, or risk “failure to thrive” and disruption at the highest levels.

Can You Really Change Culture?

The short answer: yes, but with difficulty and time—which directly impacts investment returns (IRR). True cultural change typically involves leadership transition and a multi-year time horizon. Patrick Lencioni’s “Five Dysfunctions of a Team” parable is instructive: a new CEO could only re-shape culture by patiently replacing resistant legacy leaders.

Best practices post-close:

  • First 100 days: Reaffirm and communicate core values to support and anchor strategic and operational changes in the value creation plan.
  • Leadership coaching: Personality traits (the visible “10%”) can often be refined through coaching. Deeply held values—the real determinants of behavior—are harder to shift, typically resulting only in gradual change rather than overnight transformation.

The ROI of “Soft Diligence”

Here’s the good news: Diligencing culture and values is no longer prohibitively expensive or time-consuming. Today, tools and experts enable PE sponsors to conduct robust cultural diligence in as little as one to two weeks—often at less than half the cost of a Quality of Earnings report.

Yet, the impact on deal success is profound. Identifying potential misalignment early in the process can prevent costly mistakes, reduce management churn, and turn would-be failed theses into successful exits. As the saying goes, “the soft stuff is the hard stuff”—and, for private equity, embedding cultural diligence within the transaction lifecycle is now a non-negotiable driver of value.

Conclusion

Earnings and customer metrics are essential, but they’re just one part of the equation. To reliably capture value in the lower middle market, PE must look below the waterline—probing not just what people do, but why they do it. The tools exist, the process is practical, and the ROI is real. Culture and values aren’t “soft”—they’re the real drivers of hard returns.

Missed this year’s ACG Conference? Check out the highlights in our event gallery.

Values & Fit: The Critical Equation in Executive Selection

In today’s intensely competitive business landscape, hiring a new executive isn’t just about securing a proven leader—it’s about ensuring there’s a values-driven alignment between the person and the organization. Hogan Assessments, long recognized for their expertise in executive assessment and leadership coaching, recently dedicated an episode of their “Science of Personality” podcast to this very issue—penning what might be the most essential guide yet for private equity investors, boards, executive search partners, and human capital professionals.

Why “Fit” Isn’t Enough: The Culture-Values Connection

Traditional hiring processes tend to prize experience and skills. Yet, as Hogan’s Dr. Ryan Sherman stresses, success in one context doesn’t guarantee success in another:

“The more important question to ask is not ‘Has this person been successful in their prior company?’ but ‘Will this person successfully lead here?’”
—Dr. Ryan Sherman, Science of Personality Podcast, Episode 128

The pitfall of focusing solely on “fit”—a term that’s frequently invoked, but rarely defined with rigor—is that it tends to mask subjective judgments or gut instincts. Dr. Sherman observes that organizations often confuse personal comfort with values alignment, risking unconscious bias in the process:

“Fit is often used as a word to cover up personal biases…personal biases can be on grounds like race or gender, but other times personal biases can be on all kinds of other things that don’t really have any impact on the organization of a business, but they have a way of creeping in.”
—Science of Personality Podcast, Episode 128

The Rise of Objective Measurement: Hogan’s Values Assessment

Rather than relying on intuition, the best practice is to objectively assess and compare values—both of candidates and organizations. Hogan’s Motives, Values & Preferences Inventory (MVPI), launched in 1996 and continually refined, enables this. Dr. Sherman notes that values are the “key drivers” in our professional and personal lives, frequently operating on a subconscious level:

“One way to think about values is that these really motivate us in ways that we often aren’t even aware…We just think this is something I must do…but not everybody shares the same values, even though they feel to us like everybody must.”
—Science of Personality Podcast, Episode 128

Examples in Contrast: How Values Shape Organizations

The podcast provides a compelling, anonymized example of two very different apparel companies, underscoring how CEOs’ values steer not just culture but strategic focus:

  • Company One: CEO scores high on Commerce and Altruism, but low on Power, Tradition, and Hedonism. This leader prioritizes functional, commercially successful products—think basics, efficiency, and accountability.
  • Company Two: CEO scores high on Aesthetics, Power, and Affiliation, with much lower Commerce focus. This leader is driven by beauty, luxury, and relationships—mirroring brands that emphasize appeal and status over broad functionality or cost.

As Dr. Sherman explains, both companies achieve success, but through dramatically distinct values-based approaches:

“Just to give you some heads or some hint on this…company number one makes very basic kinds of apparel…[whereas] company number two is much more luxury oriented…They’re focused on how can we make things as luxurious, as beautiful, as appealing as possible and letting the money come in as it does.”
—Science of Personality Podcast, Episode 128

Industry Patterns: Dominant Values Across Sectors

Research consistently reveals how entire industries cluster around shared core values. Here’s a snapshot of key industries and the values that dominate executive mindsets:

Industry/Org TypeDominant MVPI Values
Banking/FinanceHigh Commerce, High Power
Construction/EngineeringHigh Tradition, High Commerce, Low Hedonism
High-End Software DesignHigh Aesthetics, High Hedonism
Accounting FirmHigh Commerce
Chemical CompanyHigh Science
Military Special OperationsHigh Tradition, High Power, Low Recognition

“If you are interested in status and money and wealth and business, you’re going to be attracted to banking and finance; and banking and finance…are gonna find you to be an attractive candidate as well.”
—Science of Personality Podcast, Episode 128

Red Flags: The Cost of Misaligned Values (“Organ Rejection”)

Failure to align on core values can lead to what Hogan terms “organ rejection”—where the organization can’t assimilate the new leader, jeopardizing both culture and performance:

“Organ rejection happens when a leader’s values diverge too much from core organizational values…I look for core nonnegotiable values, and if there’s a difference on that, that’s gonna be a red flag for me.”
—Science of Personality Podcast, Episode 128

The lesson: Too dramatic a shift—hiring someone whose values are fundamentally at odds with the organization’s—can derail even the most talented executive.

Sticky Values, Shifting Behaviors

While behaviors are coachable, Dr. Sherman cautions that values are far more ingrained and “sticky.” Attempts to coach someone out of a fundamental value misfit are usually futile; those individuals are more likely to exit than adapt.

Practical Guidance for Boards and Search Committees

  • Codify Core Values: Identify the values critical to your culture and success—the nonnegotiables.
  • Use Scientifically Valid Assessment: Leverage tools like Hogan’s MVPI to empirically compare candidate and organizational values.
  • Anchor Selection on Values Alignment: Move the hiring conversation from “fit” as a heuristic to “values overlap” as a measurable criterion.
  • Be Wary of Bias: Avoid letting intuition override objective data, especially late in the process.

Conclusion: Leadership Success Is About Shared Values

Leadership transitions represent inflection points in an organization’s trajectory. Ensuring shared values between a new executive and the team they’ll lead is not just a theoretical ideal—it’s an operational necessity.

For deeper insights and lively discussion, listen to the full episode of “Values & Fit, the Culture Equation” on the Science of Personality podcast, featuring Dr. Ryan Sherman.

Note: Quotes and perspectives throughout are drawn directly from the Science of Personality Podcast, Episode 128.

For the entire podcast, visit: https://www.thescienceofpersonality.com/

Talent Sequencing Proudly Sponsors the 2025 ACG New England Conference – September 8–9, Newport, RI

Talent Sequencing is delighted to announce our sponsorship of the 2025 ACG New England Conference, taking place September 8–9 at the Newport Harbor Island Resort on Goat Island, Newport, RI.

This year’s conference marks the relaunch of a signature event for the New England dealmaking community, with a special focus on the lower middle-market. Hosted by ACG Boston and ACG Connecticut, the event brings together investors, boutique investment bankers, advisors, and business executives—especially those working with businesses new to the M&A process.

Attendees will benefit from:

  • In-depth sessions on lower middle-market trends and strategies
  • Insights from industry leaders with real-world experience
  • 1:1 meetings and high-impact networking
  • Memorable New England experiences, including tennis at the International Tennis Hall of Fame, sailing, and a classic oceanside clambake

Talent Sequencing is especially proud to sponsor the conference’s tennis event, providing a unique opportunity for attendees to play at the historic International Tennis Hall of Fame.

Complimentary Conference Invitations for Mid-Market PE-Backed CEOs
As part of our sponsorship, Talent Sequencing is pleased to extend a limited number of complimentary invitations to mid-market, PE-backed CEO clients. Please note: these invitations are for the conference itself and do not include participation in the tennis tournament. The conference agenda is tailored for C-suite leaders navigating their first liquidity events.

Space is limited—don’t miss your chance to join this premier gathering of New England’s dealmaking community.

Request an Invitation
If you are a mid-market, PE-backed CEO and would like to request a complimentary invitation, please email jule@talentsequencing.com.

We hope you’ll join us in Newport for a conference filled with insight, networking, and unforgettable experiences!

7 Talent Imperatives for PE Firms, Inspired by HBR

The private equity landscape is evolving, and the old rules no longer apply. To thrive in this new era, PE firms must recognize that talent is the ultimate differentiator. As highlighted in the recent Harvard Business Review article, “Successful Private Equity Firms Manage Talent Differently“, the days of relying solely on financial engineering for value creation are over. Forward-thinking firms are now prioritizing leadership and team quality as key drivers of success. As you consider the future of your firm’s strategy, here are the top considerations inspired by HBR’s findings to bring back to your organization and champion the importance of talent:

  1. Acknowledge the Shift in Value Creation: Financial engineering isn’t the primary driver anymore. To achieve significant returns, focus on operational excellence and strategic growth, both of which are directly tied to the quality of your leadership team and broader talent pool (as noted by HBR).
  2. Recognize Leadership as Your Most Powerful Lever: PE executives themselves are saying it – effective leadership is the most important factor. Advocate for deeper investment in leadership assessment and development within your firm and portfolio companies.
  3. Integrate Human Capital into Deal Planning: Don’t treat talent as an afterthought. Insist on rigorous human capital due diligence before the deal closes. Identify potential leadership gaps and opportunities upfront to inform your value creation strategy (a practice HBR emphasizes).
  4. Champion the Need for a Dedicated Talent Leader: Advocate for hiring a Chief Human Capital Officer or a dedicated talent leader within your PE firm. This person will champion best practices in talent management across your portfolio.
  5. Emphasize Measurable Leadership & Culture Goals: Encourage portfolio companies to set clear, quantifiable targets for leadership effectiveness and organizational culture. Track metrics like employee retention, engagement scores, and productivity improvements.
  6. Showcase the ROI of Talent Upgrades: Share real-world success stories, like the portfolio company that achieved a 4x return by focusing on talent upgrades. Demonstrate that investing in people yields tangible financial results.
  7. Implement a Systematic Leadership Assessment Process: Push for a quantifiable, systematic, and repeatable assessment of leadership within your portfolio companies. This allows you to not only create value, but also position your companies for a higher sale price (a best practice identified by HBR).

The Talent Sequencing Advantage: Unlocking Leadership Alpha

As the HBR article highlights, the future of private equity hinges on your ability to effectively manage talent and build strong teams. Talent Sequencing is uniquely positioned to help you unlock Leadership Alpha within your portfolio companies. Our Leadership Advisory Practice and Fractional Talent Partner Program (FTPP) are designed to help PE firms implement these top considerations and maximize the potential of their leadership teams. From conducting rapid Quality of Team (QoT) assessments to providing ongoing leadership development and optimization, we are your partner in building high-performing, value-creating organizations. Contact us today to learn how we can help you create a competitive edge through strategic talent management.

The Future of Private Equity: It’s All About the Team (HBR Agrees)

For years, Talent Sequencing has championed a simple, powerful idea: the future of private equity success hinges on the quality of portfolio company teams and talent. It’s not just about the numbers anymore; it’s about the people driving those numbers.

Now, Harvard Business Review is echoing this sentiment with compelling data. Their recent article, “Successful Private Equity Firms Manage Talent Differently,” confirms what we’ve seen firsthand: top-performing PE firms prioritize talent management strategies that go far beyond traditional approaches.

HBR’s Key Findings (and How We Help)

The HBR article highlights several critical areas where leading PE firms excel in talent management:

  1. Focus on Human Capital Diligence: HBR emphasizes that top firms go deeper in assessing talent before making an investment. At Talent Sequencing, our Quality of Team (QoT) assessment does exactly that. We provide rapid (7-10 day) evaluations of leadership teams, identifying potential risks and hidden opportunities before you commit capital.
  2. Active Engagement in Talent Development: HBR points out that successful firms actively engage in developing leadership skills within their portfolio companies. This is where our Leadership Advisory Practice and Fractional Talent Partner Program (FTPP) come in. We provide ongoing leadership coaching, succession planning, and organizational design services to optimize talent and drive growth.
  3. Emphasis on a Strong Culture: HBR underscores the importance of a healthy organizational culture. Through our QoT assessments and leadership development programs, we help portfolio companies build and maintain a culture that attracts, retains, and motivates top talent.

Unlocking Leadership Alpha: The Talent Sequencing Difference

The HBR article validates our core belief: talent is the key differentiator in today’s competitive PE landscape. But we take it a step further. We believe in unlocking Leadership Alpha – the untapped potential within your leadership teams.

Our Leadership Advisory Practice and FTPP are designed to:

  • Identify: Pinpoint high-potential leaders and assess team dynamics.
  • Develop: Provide tailored coaching and training to enhance leadership skills.
  • Optimize: Align talent strategies with your value creation plans to accelerate growth.

The Bottom Line

The HBR article is a wake-up call for PE firms that haven’t yet prioritized talent management. The firms that are actively investing in their talent and team have the upper hand.

At Talent Sequencing, we’re committed to helping PE firms unlock Leadership Alpha and maximize their returns. Are you ready to put your people first? Contact us today to learn how our Leadership Advisory Practice and FTPP can transform your portfolio companies.

Private Equity Influence on the Services Sector: Hiring Trends and Future Outlook

The services sector, encompassing industries such as accounting, financial services, consulting, and more, has become a focal point for private equity (PE) investment. This influx of capital is driving growth and reshaping hiring practices and executive roles within these industries. This analysis explores current hiring trends influenced by PE investments and provides insights into future expectations.

The Rise of Private Equity in Accounting and Financial Services

Private equity firms have increasingly focused on the accounting and financial services sectors. Several factors drive this trend:

  1. Stable Revenue Streams: Accounting firms often have recurring revenue from audit and advisory services, making them attractive investments even during economic downturns.
  2. Market Fragmentation: The fragmented nature of the accounting sector presents opportunities for consolidation and economies of scale.
  3. Growth Potential: PE firms see opportunities to expand service offerings, invest in technology, and drive operational efficiencies.
  4. Regulatory Complexity: Increasing regulatory demands create opportunities for specialized services, driving growth potential.

Since 2021, there has been a significant surge in PE investments in accounting firms. According to Alvarez & Marsal, many accounting firms are being acquired as PE investors recognize their potential for stable returns and operational improvements. This trend is expected to continue, with reports indicating that as many as 10 of the 30 largest US accounting firms could soon be owned by PE firms.

Current Hiring Trends in the Services Sector

  1. Increased Demand for Specialized Roles
    Private equity investments have led to a surge in demand for specialized roles in areas such as financial analysis, risk management, and operational improvement. As noted by Bain & Company, the business services sector has been among private equity’s most active hunting grounds due to its technology-enabled growth trends and chronic talent shortages.
  2. Strategic Leadership Positions
    As PE firms aim to maximize returns, there is a heightened focus on strategic leadership positions such as Chief Financial Officers (CFOs) and Chief Operating Officers (COOs). These roles are crucial for driving strategic initiatives and ensuring alignment with PE objectives.
  3. Professionalizing the revenue function continues to increase in focus/popularity within PE-backed services businesses.  Often via the creation of new titles like Chief Revenue Officer [“CRO”] or Chief Commercial Officer [“CCO”] private equity continues to push for more technology-enabled sales metrics, marketing-assisted lead generation, and stronger digital customer acquisition.

Forecasted Expectations for 2025

  1. Continued Growth in Financial Services
    The financial services industry is expected to see continued growth driven by digital transformation and regulatory changes. This will likely lead to increased hiring for roles focused on compliance, digital strategy, and customer experience management.
  2. Expansion of Consulting Services
    As businesses navigate complex market dynamics post-pandemic, consulting firms backed by PE are expected to expand their offerings. This will create opportunities for consultants with expertise in digital transformation, change management, and strategic planning.
  3. Focus on Talent Development
    With an eye on long-term growth, PE-backed service companies will increasingly focus on talent development programs aimed at nurturing future leaders within their organizations. Both to improve company performance but also enhance bench strength of succession candidates that usually bolsters sales multiples on change-of-control/ultimate company sale to next owner(s). Talent development can come in many forms, including executive learning & development, individual executive coaching, and team-based coaching. 

How Service Companies Should Plan for Hiring

Given these trends, service companies need to adapt their hiring strategies to stay competitive:

  1. Develop Comprehensive Talent Strategies: Align hiring practices with long-term business goals and PE objectives that have a relentless focus on “improve existing leadership or move them out and replace with higher performers”
  2. Combine team coaching with implementation of a “company operating system” like OKRs (objectives & key results, see https://www.whatmatters.com/faqs/okr-meaning-definition-example for more), EOS (Entrepreneurial Operating System, https://www.eosworldwide.com/ ) or similar company goals setting and accountability and measurement systems down to the department & employee led by an external company coach
  3. Leverage Technology in Recruitment: Use AI-driven tools to streamline recruitment processes and identify top talent efficiently.
  4. Invest in Employee Development: Create robust training programs to upskill employees and prepare them for leadership roles.
  5. Adapt to Remote Work Trends: Offer flexible work arrangements to attract top talent from diverse geographic locations.

By understanding these trends and preparing strategically, service companies can position themselves to attract and retain top talent in an evolving market landscape shaped by private equity investments. 

Tech Hiring Trends: Navigating the Future of Executive Recruitment in SaaS and Software

As we approach 2025, the landscape of executive hiring in the tech industry, particularly in SaaS and software companies, is evolving rapidly. Recent trends and future projections paint a picture of an industry in flux, with new challenges and opportunities emerging for employers and job seekers. Let’s delve into the current state of tech hiring and explore what the future might hold.

Recent Trends in Tech/Software/SaaS Hiring

  1. Recovery from 2023 Layoffs
  2. Emphasis on AI and Machine Learning
  3. Remote and Hybrid Work Models
  4. Focus on Cybersecurity
  5. Salary Expectations

The tech industry has shown remarkable resilience in the face of economic uncertainties. After a wave of high-profile layoffs in early 2023, the sector has rebounded strongly. According to the Dice Tech Job Report, the tech unemployment rate remained significantly lower than the national average throughout 2023, indicating robust demand for skilled professionals.

Artificial Intelligence (AI) and Machine Learning (ML) have moved from buzzwords to essential components of business strategy. This shift is reflected in hiring trends, with a surge in demand for executives who can drive AI initiatives. The 2024 Stack Overflow Developer Survey reveals that 78% of developers believe AI will significantly impact their work in the next five years.

The pandemic-induced shift to remote work has become a permanent feature of the tech landscape. A survey by Robert Half found that 75% of tech leaders are now open to hiring talent from any geographic location. This trend is reshaping executive recruitment strategies, allowing companies to tap into a global talent pool.

Cybersecurity remains a critical concern for tech companies. The increasing frequency and sophistication of cyberattacks have led to a growing demand for cybersecurity experts at all levels, including executive positions. Gartner predicts that worldwide spending on information security and risk management will reach $188.3 billion in 2024, a 14.3% increase from 2023.

While tech salaries overall remained relatively flat in 2023, there’s increasing dissatisfaction with compensation among tech professionals. The Dice Tech Salary Report indicates that 52% of tech workers are dissatisfied with their current compensation. This trend may impact executive-level hiring and retention strategies, pushing companies to reassess their compensation packages.

Forecasted Expectations for 2025

  1. Continued Growth in AI and Data Analytics
  2. Emphasis on Hybrid Skills
  3. Global Talent Pool
  4. Sustainability and Green Tech
  5. Cybersecurity at the Forefront
  6. Upskilling and Continuous Learning

As we look towards 2025, several key trends are expected to shape the tech hiring landscape:

The demand for AI and data analytics expertise is projected to skyrocket. IDC forecasts that by 2025, 75% of enterprises will prioritize AI-powered automation to enhance decision-making processes. This trend will likely drive a surge in executive roles focused on AI strategy and implementation.

The lines between technical and business roles are blurring. Future tech executives will need to possess a unique blend of technical expertise, business acumen, and soft skills. The World Economic Forum’s Future of Jobs Report highlights the growing importance of skills like analytical thinking, creativity, and emotional intelligence in the tech sector.

With remote work becoming the norm, geographic barriers in hiring are disappearing. This trend is opening up new opportunities for both companies and executives. However, it also presents challenges in managing global teams and navigating different cultural contexts.

Sustainability is moving from a peripheral concern to a core business strategy. We anticipate a rise in executive roles focused on green technology initiatives as companies respond to climate change concerns and increasing regulatory pressures.

As cyber threats continue to evolve, cybersecurity will remain a top priority. Gartner predicts that by 2025, 60% of organizations will use cybersecurity risk as a primary determinant in conducting third-party transactions and business engagements. This trend will elevate the importance of cybersecurity expertise in executive roles.

The rapid pace of technological change is making continuous learning a necessity. Executives who can drive and model lifelong learning within their organizations will be in high demand. LinkedIn’s 2024 Workplace Learning Report found that 94% of employees would stay at a company longer if it invested in their learning and development.

How SaaS and Software Companies Should Plan for Hiring

Given these trends, SaaS and software companies need to adapt their hiring strategies to stay competitive. Here are some key recommendations:

  1. Develop a Strategic Talent Acquisition Plan: Align hiring strategies with long-term business goals, focusing on critical areas like AI, cybersecurity, and data analytics.
  2. Embrace Flexible Work Models: Offer flexible work arrangements and develop strong remote work policies to attract top executive talent.
  3. Invest in Upskilling and Development: Implement robust training and development programs to nurture internal talent and attract executives who value continuous learning.  Creating a branded “[company logo] University” with strong learning & development content, course modules particularly focused on SOFT skills–management, leadership, communication skills can go a long way to bridging raw talent into managerial and leadership ranks
  4. Prioritize Diversity and Inclusion: Develop and implement strong DEI initiatives to create a more inclusive workplace and attract diverse executive talent.  Research has proven that teams with gender and other diversity actually perform at a higher level in problem-solving than more homogenous teams. 
  5. Leverage AI in Hiring Processes: Ensure that internal recruiting resources and external search partners utilize AI-driven technologies to enhance the hiring process, from candidate sourcing to skills assessment.
  6. Focus on Retention: Review executive compensation packages and benefits to ensure they remain competitive in light of increasing dissatisfaction with compensation in the tech sector.
  7. Prepare for AI Integration: Plan for how AI will impact the workforce and adjust hiring strategies accordingly.

As the tech industry continues to evolve at a breakneck pace, staying ahead of hiring trends will be crucial for SaaS and software companies. By focusing on these areas, companies can position themselves to attract and retain top executive talent in the dynamic tech landscape of 2025 and beyond.

[Citations]
Dice Tech Salary Report 2024
Stack Overflow Developer Survey 2024
Gartner Forecasts Worldwide IT Spending to Grow 8 Percent in 2024
IDC FutureScape: Worldwide Artificial Intelligence and Automation 2024 Predictions
World Economic Forum Future of Jobs Report 2023
Gartner Top Strategic Technology Trends for 2025
LinkedIn 2024 Workplace Learning Report

Dr. Anita Woolley, Understanding Collective Intelligence: Investigating the Role of Collective Memory, Attention and Reasoning Processes https://kilthub.cmu.edu/articles/journal_contribution/Understanding_Collective_Intelligence_Investigating_the_Role_of_Collective_Memory_Attention_and_Reasoning_Processes/24049830?file=42176421 

Benefits of Fractional Talent Partners for Private Equity Firms

In today’s competitive private equity landscape, optimizing talent strategy has become a crucial factor in driving portfolio company performance and maximizing returns. Fractional talent partners offer a unique solution that can provide significant benefits to private equity firms. Let’s explore some of the key advantages:

1. Access to Specialized Expertise

Fractional talent partners bring a wealth of experience and specialized knowledge to the table. They can provide:

  • Deep insights into talent assessment and development
  • Best practices in organizational design and effectiveness
  • Expertise in compensation strategy and benchmarking

This specialized knowledge allows PE firms to make more informed decisions about their portfolio companies’ talent needs without the overhead of a full-time executive.

2. Cost-Effective Talent Solutions

By engaging fractional talent partners, PE firms can:

  • Reduce costs associated with full-time hires
  • Scale talent resources up or down based on portfolio needs
  • Allocate resources more efficiently across multiple portfolio companies

This flexibility is particularly valuable for firms managing diverse portfolios with varying talent requirements.

3. Enhanced Due Diligence and Risk Mitigation

Fractional talent partners can play a crucial role in the pre-deal phase by:

  • Conducting thorough pre-investment executive assessments
  • Providing “ride-along” talent-focused services during diligence
  • Identifying potential talent-related risks and opportunities early in the process

These insights can help PE firms make more informed investment decisions and develop targeted post-acquisition talent strategies.

4. Accelerated Value Creation

With their focused expertise, fractional talent partners can:

  • Quickly identify and address talent gaps in portfolio companies
  • Implement best practices in recruitment and talent development
  • Drive organizational effectiveness through tailored interventions

This accelerated approach to talent optimization can lead to faster realization of value creation plans.

5. Cross-Portfolio Learning and Knowledge Sharing

Fractional talent partners can facilitate:

  • Annual leadership summits for top executives across the portfolio
  • Regular peer learning sessions focused on specific functional areas
  • Knowledge management systems tailored to talent needs

These initiatives foster collaboration, innovation, and the spread of best practices across the entire portfolio.

Conclusion

Fractional talent partners offer private equity firms a powerful tool to enhance their talent strategy and drive portfolio performance. By providing specialized expertise, cost-effective solutions, and accelerated value creation, these partners can play a pivotal role in achieving superior returns on investment.

As the private equity landscape continues to evolve, firms that leverage fractional talent partners will be better positioned to navigate talent challenges, optimize their portfolio companies, and ultimately deliver stronger results for their investors.

Best Of PE Exits Lessons Learned: Insights from a Decade of CEO Panels

At Talent Sequencing, we believe that leadership excellence is the cornerstone of successful businesses. For over a decade, our talent acquisition arm has hosted annual Private Equity CEO Exit Panels, bringing together accomplished CEOs who have successfully navigated the complex landscape of private equity exits. These panels have provided a wealth of knowledge and insights that we’re excited to share with current and aspiring leaders.

This article distills the most valuable lessons learned from these panels, offering a comprehensive guide for CEOs preparing for or considering a private equity exit. Let’s dive into the key takeaways that have consistently emerged as crucial factors for success.

Build and Maintain a Strong Team

One of the most emphasized points across all panels is the importance of assembling and nurturing a competent management team. Successful CEOs consistently advise:

  • Quick team assembly: Build your management team rapidly and don’t hesitate to make necessary changes.
  • Strong CFO: Ensure a capable CFO is in place early. They play a crucial role in preparing financial reports and measurements essential for future exits.
  • Clear expectations: Set and communicate clear expectations with your executive team before and during the sale process to maintain alignment and focus.

Focus on Business Fundamentals

While preparing for an exit is important, panelists stress that maintaining strong business performance is paramount. Key points include:

  • Meet or exceed targets: Keep your eye on the business and consistently meet or surpass financial goals.
  • Understand growth drivers: Identify and emphasize key growth drivers early, as they form the basis of your exit story.
  • Financial hygiene: Maintain audited financials and traditional bank relationships to demonstrate financial health and stability.

Cultivate Investor Relationships

The relationship between CEOs and their private equity partners is crucial. Our panelists recommend:

  • Transparency: Maintain open and honest communication with PE partners.
  • Resource utilization: Leverage the resources and expertise your PE firm offers, especially for future transactions.
  • Alignment: Understand the full investment thesis and potential partnership dynamics to ensure everyone is on the same page.

Prepare Early for Exit

Preparation is key to a successful exit. CEOs advise:

  • Data room readiness: Start building your data room years before the process begins to avoid last-minute scrambles.
  • Banker relationships: Develop relationships with key investment bankers in your industry well in advance.
  • Market awareness: Be ready to capitalize on favorable market conditions when they arise.

Manage the Sale Process Effectively

When it comes time to sell, effective management of the process is crucial:

  • Choose the right banker: Select an investment banker with industry knowledge and good chemistry with your team.
  • Maintain leverage: Be prepared to walk away from unfavorable deals to maintain negotiating power.
  • Look beyond price: Consider factors beyond the highest bid when selecting a buyer, such as cultural fit and post-sale plans.

Maintain Business Performance During the Process

The sale process can be all-consuming, but successful CEOs emphasize:

  • Business focus: Don’t let day-to-day operations suffer during the sale process.
  • Future growth: Keep focused on your mission and future growth story to maintain momentum.
  • Self-care: Manage stress and take care of yourself throughout the process to ensure you cross the finish line successfully.

Communication is Key

Clear and strategic communication can make or break a successful exit:

  • Employee communication: Decide on a communication strategy for employees, balancing transparency with confidentiality requirements.
  • Post-announcement preparedness: Be ready to answer key questions from employees after the deal is announced.
  • Stakeholder alignment: Maintain alignment among ownership, board, and management throughout the process.

These insights from seasoned CEOs who have successfully navigated private equity exits offer invaluable guidance for leaders at any stage of their journey. At Talent Sequencing, we understand that each leadership experience is unique, and these lessons serve as a foundation upon which to build your own success story.

Our comprehensive suite of services, including leadership development, talent management, and strategic advisory, is designed to support CEOs and their teams throughout their entire journey – from initial investment to successful exit and beyond.

Are you ready to optimize your leadership potential and prepare for your next big move? Explore how Talent Sequencing can help you and your team achieve excellence at every stage of your business journey. Contact us today to learn more about our tailored solutions for leaders in the private equity space.

Explore past PE CEO EXIT LESSONS LEARNEd

Building a Culture of Continuous Learning: The Key to Sustainable Leadership Growth

In our previous post, we explored the evolution of leadership development and why the one-size-fits-all approach no longer works. Today, we’re diving deeper into what makes leadership development sustainable over time: a culture of continuous learning. In the most effective organizations, leadership growth isn’t a series of isolated events or one-off training programs—it’s woven into the daily fabric of the organization. When leaders are given consistent opportunities to learn and adapt, they become better equipped to handle the complexities of today’s fast-paced business environment.

At the heart of a continuous learning culture is the understanding that leadership development should be a constant, evolving process. Leaders at all levels need ongoing opportunities to sharpen their skills, learn new ones, and reflect on their progress. But this doesn’t just happen through formal training programs. While structured learning experiences are essential, organizations must also capitalize on small, everyday moments that offer valuable learning opportunities. From mentorship sessions and peer feedback to collaborative projects and problem-solving exercises, these moments are key to reinforcing leadership development on a daily basis.

The true power of integrating continuous learning into the regular routine of leadership development lies in its adaptability. Every leader is different, and every team faces unique challenges. Programmatic Learning for Leadership supports this by providing a framework that adapts to the needs of each leader and organization. By encouraging leaders to engage in both large, structured learning programs and small, in-the-moment growth opportunities, organizations can create a leadership team that is agile, resilient, and always improving. It’s this balance between formal and informal learning that creates a truly dynamic environment for growth.

Moreover, fostering a learning culture ensures that leadership development is not just reactive but proactive. Instead of waiting for performance issues to arise, organizations can cultivate an environment where leaders are always in a state of self-improvement, preparing them for future challenges. Small, consistent learning opportunities—like peer coaching or regular feedback loops—complement larger initiatives like leadership workshops or advanced training programs. Together, they create a layered approach to development that’s constantly evolving to meet the demands of both the individual leader and the organization as a whole.

In conclusion, building a culture of continuous learning is one of the most effective ways to sustain leadership growth and success. By embedding both formal and informal learning opportunities into the everyday routine of leadership development, organizations can foster an environment where growth is ongoing, adaptable, and aligned with long-term goals. With programmatic learning, this process becomes even more effective, creating leadership teams that are not only capable but also always evolving, driving organizational success for years to come.