Deal Volume CEO Alpha: A new approach to generating private equity outperformance
49 snips
Jun 14, 2023 AI Snips
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CEO Alpha Defined
- CEO Alpha is a new term referring to the extra performance a company achieves due to CEO outperformance.
- This outperformance stems from key CEO decisions in areas like strategy, resource allocation, and talent management.
Private vs. Public CEO Alpha
- Private company CEOs face unique pressures compared to public company CEOs, including shorter-term performance expectations and different board dynamics.
- This necessitates distinct skill sets and development programs tailored to the private equity environment.
Day One Exit Strategy
- One private company CEO shared that on day one, he was given an investment thesis and told to start thinking about the exit.
- This immediate focus on exit strategy is a foreign concept for public company CEOs.