847.849.2800
Contact
Key takeaways
1. Interim executives are strategic assets. They bring proven expertise when a portfolio company needs leadership, speed, or specialized skills.
2. Timing matters. From diligence through exit, the right interim leader can address critical needs at pivotal moments.
3. Execution creates value. Experienced interim executives bring pattern recognition, focus, and the ability to turn priorities into results.
Many private equity funds hear the words “interim executive” and think the only application is an Interim CEO or CFO for turnaround or short-term fill-in of a portfolio company. But PE funds seeking a great return look to interims for their unique abilities to build and transform companies.
An Interim CEO brought on to lead a recently acquired private equity portfolio company, for example, may match the hold period of the fund. That could mean several years of working to build, grow, and ultimately exit the company, hitting big returns for everyone involved.
Here are six major use cases for an Interim CEO, Interim CFO, or other interim executive in PE-backed portfolio companies:
| When the PE Fund Needs… | Consider an Interim… |
|---|---|
| Leadership insight during due diligence | CEO / COO |
| Immediate leadership at or after closing | CEO / CFO / COO |
| Operational transformation or value creation | COO / CFO |
| Accelerated growth or go-to-market execution | CMO / CIO / COO |
| Organizational change or talent leadership | CHRO |
| Exit preparation and transaction readiness | CEO / CFO / COO |
1. Interim Executives in Diligence
Most funds hope to spread their investment beyond industries where they’ve already had success. Looking at new industries where acquisitions may cost less and produce higher returns requires more diligence. The further afield a fund goes, the more they need expert leadership.
Interim executives draw on their vast experience to tackle diligence projects. As a plus, they view a potential acquisition through the eyes of an operator, giving insight into challenges and opportunitiese, from growth potential to integration.
We recently matched a $5B+ fund with an Interim CEO expert in e-commerce and consumer goods to help determine if a potential acquisition made sense. While the fund had deep experience in the manufacturing space, understanding the current challenges and opportunities to expand go-to-market strategy was essential.
— Robert Jordan, CEO, InterimExecs
2. Interim Executives in Process Improvement and Upgrade Mode
When a private equity fund acquires a company, it’s not uncommon for the company to lack process and timely reporting at the level required by PE funds.
That’s when funds bring in an interim CFO to establish a higher standard of accounting, financial controls, and reporting. In other cases, it’s technology and operations that get an overhaul with an interim CIO. ERP implementation. Outsourcing. Supply chain optimization. Funds will look to interims to come in on a project basis, or in some cases, work alongside legacy management to raise the bar.
When a private equity fund had to fire the CEO of one of its portfolio companies for underperformance, an Interim CEO from InterimExecs RED Team was on-site, ready to go, within days, stepping in to calm the team, put in place a clear plan of action, and ensure morale and productivity stayed high through the transition.
Within five days of assessing the business and working with the team, the Interim CEO uncovered $1 million in missing profits. That was followed by performance improvement initiatives that resulted in more efficiency and increased profits.
— Robert Jordan, CEO, InterimExecs
3. Interim Executives in Closing Mode
Even the best executive search firm can take six months or more to identify the right permanent C-suite leader. No one wants to see a transaction slowed for lack of one key role, which is why PE funds turn to interims. They are strong leaders who can help close the deal, establish better systems and controls, and recruit new permanent executives. A good interim CEO or CFO will put in place a plan, systems and processes that can be handed off seamlessly.
4. Interim Executives in Growth Mode
While most interim engagements run 8-24 months in growth mode, it’s not uncommon to hear that an interim CEO has chosen to match their tenure to a PE fund’s goals. In this case, the fund seeks an interim with proven experience building and selling companies time after time.
Interims are change agents with backgrounds that include corporate spinoffs and successful exits. The CEO in this role is compelling when their track record shows multiple wins and exits.
Free Guide
The Complete Guide to Interim Management
Free Download
The Complete Guide to Interim Management
Everything owners, investors, and boards need to know about deploying interim executives — when to use them, how to vet them, what to pay, and how to get results fast.
5. Interim Executives Prep For Sale
While exits have slowed recently, the vast majority of PE funds still aim for a sale. To be successful, they need a management team prepared to take on this one-time event. But what happens when the team has never gone through an exit?
Even with an investment banker guiding the process, an untested team of strong operators may falter at the exit. In this case, it pays to bring in interim executives who are experts in company operations and leadership and have a history of strong performance during a sale.
After seeing the value of experienced interim leadership in past sales, funds are more likely to bring in interims a year or so before a potential future exit. The interim leaders are tasked with fully preparing the company, from systems to processes, branding, and unique IP, to help the fund reach its maximum asking price.
6. Interim Executives in Distress or Turnaround Mode
Many PE funds are familiar with using turnaround executives in portfolio companies. The need for experienced operating executives to take over leadership roles when things go south with a portfolio company is usually a fire drill.
Maybe a surprise popped up post-acquisition. Maybe legacy management could not get on board with a bigger future. Despite circumstances, the good news is that many Interim CEOs and Interim CFOs are experts at turnaround and distress, tackling the toughest projects, regardless of external circumstances.
Need help now?
Talk to Us About Your Portfolio
We can identify the right RED Team executives in as little as 48 hours and have them on-site in days, ready to assess the need, build the plan, and lead the change.
Read More
Frequently Asked Questions
A leadership vacancy is the obvious time, but a vacancy is not the only trigger. Interim executives can be valuable whenever a portfolio company needs experienced operating leadership faster than a permanent search can deliver, or needs expertise the existing management team lacks. That can include diligence, post-close integration, operational improvement, growth initiatives, exit preparation, or a turnaround.
Yes. An experienced interim CEO or other C-suite leader can bring an operator’s perspective to diligence, particularly when a fund is entering an unfamiliar industry or assessing a company’s growth and operational potential. The executive can identify issues and opportunities that may be difficult to see from an investor perspective alone and, in some cases, continue into the post-close leadership role.
A permanent executive search can take months, while the investment and operating clock keeps moving. An experienced, vetted InterimExecs interim executive can be identified in as little as 48 hours, stepping in to stabilize the organization, establish priorities and systems, and keep the portfolio company moving forward during the search for a permanent leader.
Typically within 48 hours for initial conversations, with executives onsite within days. In urgent situations — fraud discovery, sudden leadership departure, deal closing — we’ve placed executives in as little as 24 hours from first call.
Most PE-related assignments run 6–18 months. Value creation engagements ahead of exit tend to run longer (12–24 months). Crisis stabilization is typically shorter — 3–6 months — before transitioning to a permanent hire or fractional arrangement. All contracts are subject to 30-day cancellation with no severance or benefits costs.
