Welcome to the Private Equity Podcast! In this episode, we dive into the intricate dynamics of managing relationships between CEOs and private equity firms with our guest, Matt Sharrers, founder of ETJ Advisory. Matt shares his extensive experience and insights on how executives can effectively navigate the transition into private equity-backed roles, focusing on the critical aspects of cultural change, value creation, and team management.
[00:00] Welcome back to the Private Equity Podcast by Raw Selection.
[00:59] Matt Sharrers discusses his background and current role at ETJ Advisory, including his past experiences with SBI and his diverse career path.
[01:28] Common errors by private equity firms and portfolio companies. Matt highlights the importance of understanding cultural impacts during CEO succession and aligning with private equity goals.
[01:57] Matt's book “The Second CEO” and its focus on helping new CEOs navigate the challenges of taking over from a founder and creating value.
[02:25] Advice on managing cultural shifts from a founder-led organization to a private equity-backed company.
[03:20] Strategies for defining and implementing new company culture effectively, including the role of top executives and culture champions.
[05:10] The importance of defining and communicating company culture and values. How to make culture an active mechanism in hiring, performance reviews, and onboarding.
[07:01] The role of the CEO in driving cultural change and the mistakes to avoid, such as deferring too much to private equity firms.
[09:56] Involving different levels of the organization in shaping culture and creating buy-in across the board.
[11:08] Challenges faced by first-time private equity-backed executives and the importance of understanding private equity models and support.
[13:08] Advice on balancing the information advantage of running the business with the guidance and input from private equity partners.
[15:34] Insights on how to approach value creation, with a focus on sustainable growth and the importance of a strong team.
[18:00] The necessity of adapting team composition as the company scales and evolves, including the need for new talent at different milestones.
[19:26] Advice on evaluating and developing talent within the organization to align with growth and value creation goals.
[23:20] When to make decisions about team changes and the importance of having the right team in place by mid-year two.
[24:20] Matt shares his reading and listening preferences, including books by Arthur Brooks, gratitude journaling, meditation, and sports interests.
[25:46] Alex thanks Matt for the insightful discussion on transitioning from founder-led to private equity-backed leadership.
You can connect with Matt Sharrers on LinkedIn by visiting his profile here.
Thank you for tuning in!
To get the newest Private Equity episodes, you can subscribe on iTunes or Spotify here.
Lastly, if you have any feedback on the podcast or want to reach out to Alex with any questions, send an email to alex.rawlings@raw-selection.com.
The Private Equity Podcast, by Raw Selection