Today at L23 a diverse panel assembled to share their experiences as leaders at companies that were acquired by private equity firms. These stories stood in contrast with private equity’s slash-and-burn image.
Sharing the stage was Cynthia Sener, who is the President of Go to Market at Chatmeter. In July 2019, Chatmeter took an undisclosed investment from Providence Strategic Growth. Also joining the panel was Joanne Del Toro. She is the chief transformation officer at Newfold Digital. Newfold is the company that emerged from the combination of Endurance and Web.com in 2021.
The feelings expressed by the panelists definitely did not reflect a sense of being stripped of cash and discarded, which PE is often known for, fairly or not. Rather, they generally expressed the view that PE investments enabled growth and transformation.
Here are just a few takeaways from a rich conversation about each company’s PE journey.
- The investment added a new level of leadership and allowed us to scale (Sener)
- It is very important to have a PE investor with the same priorities as you (Sener and others made similar points).
- During due diligence seek wise counsel from those who have done it before and can help you “find the mousetraps” (Goyal).
- Change happens fast under new PE leadership. Never be afraid of speed. “There is never a time where you go too fast” (Del Toro).
- Not everyone will be on board with the new journey. It’s for the best to let these transitions happen (Del Toro).
When Private Equity Goes Right
Private equity gets a bad rap. It’s often known for predatory investing and flipping companies for quick profit. But that’s not always the case. What’s the bright side of PE, and who’s doing it right. We go straight to the source.
Cynthia Sener, Chatmeter
Joanne Del Toro, Newfold Digital
Saurabh Goyal, Scorpion