Private Equity Software Executive Chairman Case Study

CASE STUDY

Executive Chairman Helps Private Equity Software Company Prep for Sale

A private equity fund had a great track record, raising over $5 billion in capital through the years. After taking one of their portfolio companies – a SaaS technology product – through a formal sales process, bids came in much lower than expected and they concluded they were not going to proceed. Revenue was flat, and they knew that in order to reach a potential exit, an infusion of fresh thinking and leadership was needed.

Rise in Enterprise Value | Increased Cash Flow | EBIDTA Improvement | Quality Lead Flow | Successful Sale

BACKGROUND: The software company was founded by three individuals who handed off operations to a CEO who had strength in running sales, but was missing the financial and leadership skills necessary to make the business succeed. After a failed sale process, the private equity owners decided to make changes to the team with the goal of strengthening and growing the business for another year before going out for sale again.

THE CHALLENGE: After acquiring the company six years prior, the company was sitting with net revenues around $40M with $7M EBIDTA, but despite being profitable, revenues were flat. After running a process, the fund saw a huge deviation in value despite holding the second largest position in their market with a strong, differentiated product. While the team had a mix of good skills, there was a need for better execution, taking current good ideas and translating them to measurable success. As one of the partners said: “there is a need for adult supervision”. While the market was growing double digits, the company was not reaping the benefits of that growth.

What: A private equity backed technology company provided a proprietary software to clients in the fundraising and crowdfunding space.

INDUSTRY: Private Equity

ROLE: Interim Executive Chairman

LOCATION: United States

We get calls from private equity funds who want to grow their portfolio companies to point of exit. In many cases, changes need to be made on the management team or expert leadership is needed to provide accountability, mentorship, and results.

– Robert Jordan, CEO, InterimExecs

SOLUTION: The fund worked with InterimExecs to bring in an Executive Chairman with software and technology experience to work with the CEO and team while zeroing in on improving profitability. We brought in an executive with a wide range of private equity experience who was skilled at taking underperforming assets and making them shine. The goal would be to set clear KPIs, grow the company, package to sell, and take the company through to point of successful exit.

The Executive Chairman dedicated three days per week, coaching the CEO and team, while advising the PE fund partners to ensure good progress was being made.

• Define the company value proposition
• Improve communications and accountability
• Better reporting measures in place with clear KPIs
• Increase revenue through cross selling
• Enter new markets to gain new customers

Ultimately, the Executive Chairman led the M&A process, successfully selling the company.

To learn how an InterimExecs RED Team leader can help you, contact us here or call +1 (847) 849-2800 for a confidential discussion.

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Landing Page_Business Survival

How Your Business Can Survive During Crisis Times

InterimExecs RED Team – an elite C-suite team – specializes in crisis solutions, guiding companies to respond, act, and solve problems in a time when businesses from manufacturing to retail are struggling to survive.

Keep your business afloat and come out stronger than before with a fresh action plan from RED Team turnaround experts.

There is no one approach that will work for all businesses facing zero revenue. What works for one might not be applicable to another. The common denominator is action. The answer may not be readily apparent, but it does exist.

Phil Schiavoni, InterimExecs RED Team Turnaround CEO

How It Works

Engage a RED Team executive for a Crisis Guidance Consult. Leverage an expert perspective to help you construct a better roadmap to survive a downturn and create a brighter future.

  • 1

    Contact

    Confidential discussion to lay out your assets, challenges, & opportunities

  • 2

    Schedule

    Connect with a RED Team executive & complete a brief company questionnaire

  • 3

    RED Team

    60-minute brainstorming & immediate insights from an executive turnaround expert

  • 4

    Roadmap

    Continued brainstorming and support to form and implement an action plan

The Common Denominator is Action

Interim executives on the RED Team specialize in parachuting into troubled companies to stop the bleeding, make new plans, implement, and bring rapid results. Tackle your most pressing problems:

  • What dangers need to be addressed first?
  • How do you manage capital to preserve cash?
  • What do you do if your banker called your loan?
  • How do you continue to pay employees if revenues fell, or are layoffs inevitable?
  • When you get out of this, what are the three or four things you need to do that you haven’t done before?

Learn more about executive turnaround services, or get started with a confidential discussion with InterimExecs to schedule your Crisis Guidance Consult today. Call us at +1 (847) 849-2800 or contact us here:

In a zero revenue environment, time combined with inactivity will deplete available cash and capital reserves and the outcome becomes inevitable. Take action. It may not be perfect, but perfection is not the goal. Survival is.

Phil Schiavoni, InterimExecs RED Team Turnaround CEO

Your Business Survival Guide

Zero-Revenue

Surviving Zero Revenue: Thoughts from a Turnaround CEO
Can businesses survive a period of zero or near zero revenue? An expert turnaround CEO shares that survival depends on taking action and deploying out-of-the-box thinking. Read More >

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The COVID Battle on the Manufacturing Floor & The Global Supply Chain
After seeing the biggest drop in the manufacturing sector since 1946, turnaround executives share how they are approaching COVID-19 on the manufacturing floor. Read More >

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How Companies Can Stay Ahead of Rising Cyber Security Threats
Hacking attempts have jumped 20%, and a top CISO and cyber security expert says it’s time for business leaders to shift their thinking about cyber security threats and take a proactive approach. Read More >

Strategic-CEO

Strategy Focused CEOs See Growth and Opportunity Even in Crisis

While every executive wants their business to be healthy, only the Strategy Focused CEOs seemed to see the world through a lens of action, opportunity, and growth. Read More >

Inspire

Inspiring Ways Companies are Reacting to Coronavirus
If the cloud hovering over the economic system amid coronavirus has a silver lining, temporary changes to how companies define their mission statement could become permanent. Read More >

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The Leaders Response to COVID-19: Confidence in the Face of Fear
Anxiety and outright fear from COVID-19 are in full effect, so how should successful leaders react to the events around us, and how can we bring calm and stability to organizations and our teams? Read More >

Subscribe to the Crisis Times Newsletter

Join other owners, investors, and management teams in subscribing to the Crisis Times newsletter to get advice from InterimExecs RED Team top CEOs, CFOs, COOs, and CIOs on how you can keep your business afloat and come out stronger than before.

Coronavirus or some other crisis is not going to defeat you. We have seen leaders do what is necessary to save their company, protect it and their employees, and make it thrive. These are uncertain times, but we will band together and InterimExecs is committed to being a resource to owners, investors, and management teams trying to figure out how to move forward and come out stronger than before.

– Robert Jordan, CEO, InterimExecs

RED Team Executives: On Call to Help Now

RED Team Executives: On Call to Help Now

Uncertainty is growing in the US with coronavirus cases mounting. California, Illinois, Michigan, and other states have taken serious actions with shelter-in-place orders, leaving many people wondering how this will impact them personally as well as their companies and the economy as a whole.

At the same time, we’re reflecting on how much there is to be grateful for, including the strong relationships we’ve built over 10+ years with inspiring leaders. These are women and men who focus their careers on running into the burning building – the company in trouble – learning fast, listening, assembling resources, providing fresh and objective insights, developing new plans and actions for survival and ultimately blueprints for a brighter future.

We recently convened a call with some RED Team execs who shared how they are adapting to new ways to work. Many executives shared experiences on the front lines figuring out how to help combat the virus and also help people work smarter and safer:

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Good CEO, Bad CEO: Leadership Lessons from InterimExecs’ RED Roundtable

Good CEO, Bad CEO: Leadership Lessons from InterimExecs’ RED Roundtable

Leadership was a prominent topic at InterimExecs’ latest Rapid Executive Deployment (RED) Roundtable event in Chicago. Panel experts discussed leadership early and often as they reflected on change initiatives, the impact of automation on executives and workforces, and the values that make great executive leaders. 

A recurring theme that cut across speakers and topics was the importance of having the right team in place, starting at the top. Executives set the tone for the entire company. Their values trickle down and play an outsized role in the organization’s success or failure. 

“The message from our perspective is that if we have the right team and the right value set, I think any company can find a position and outmaneuver the competition,” said Greg Jones, Managing Partner at the Edgewater Fund, who spoke on day two of the Roundtable with Brian Boorstein of Granite Creek Capital Partners. “I’m looking for someone who puts the organization and the values of the business ahead of their own,” added Greg. “If you don’t have that, it’s a disaster in any scenario.”

Brian also singled out selfishness as one of the least desirable executive traits. “The worst people are those that are really only concerned with themselves,” he said. “If we don’t have the right management team to start, we’re in trouble. We generally go to InterimExecs to find people to help us out.”

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2019 Highlights, and Looking to a Bigger, Brighter 2020 Ahead

2019 Highlights, and Looking to a Bigger, Brighter 2020 Ahead

Friends, we are kicking off 2020 energized by all the big wins to come after completing an excellent 2019 adventure. Ok, ok, 2019 is seeming a bit passé now that we’re in a brand new shiny decade (still letting that set in), but before we get into upcoming plans, will still need a quick recap and note of appreciation for your hard work and support.

First, a big thanks to our team of elite executives we call RED Team Ready, who performed in amazing engagements throughout 2019 in the US and Europe. We are nothing without your trust, your encouragement, and your daily support. Truly.

With a go-to team of brilliant leaders eager to jump in at a moment’s notice, we have an unmatched capability that makes up the essence of RED, Rapid Executive Deployment. While you hail from around the world and your skills and abilities are each unique, we can sum up your excellence with a common and shared passion and unstoppable energy to give your best in everything you do. We know you love the people and organizations you lead, and cannot say thank you enough for teaming up with us.

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Outsourced CMO

How an Outsourced CMO Can Give You F500 Experience at a Fraction of the Cost

Interim chief marketing execs face a consumer public that is far savvier and well-informed than ever before. With instant access to an unlimited trove of both objective and biased information and messaging there is a lot competing for the scarcest of all assets in the modern world: attention. Walking into an interim marketing engagement requires a broad and deep skill set.

Have You Built a Strong Brand?

Whether product or service-based, B2B or B2C, local or global-focused, all businesses need to understand why they do what they do and how best to communicate that and tell a compelling story to customers and the marketplace. Yet along the way so many organizations lose a sense of values, direction, and purpose. A good Chief Marketing Officer (CMO) is the lifeline to these companies, crystalizing brand, positioning, and growth strategy.

For fast-growing organizations, however, a full-time CMO may seem like too much firepower. But there is a solution: enter your on-call CMO. A specialized group of CMOs have started splitting their brain power between multiple organizations, serving as an Outsourced or Fractional CMO.

This model allows companies to tap into top brand experience while getting a hands-on resource to not only create a clear marketing strategy, but execute on it.

What makes your organization work the way it does? What is your unique culture, and how does that fit with an opportunity to build a strong brand? Where should your company go? Why should people care? These are all questions a CMO will answer.

FRACTIONAL CMO SPECIALTIES:
• Brand Positioning
• Community Engagement
• Digital Strategy
• B2B and B2C
• Product Development
• Global Distribution
• Pricing
• Market Research
• Advertising and PR
• Social Media
• New Product Launch
• Search Engine Marketing (SEO and SEM)
• Data and Analytics
• Company Spinoff
• Team Building
• Merger or Acquisition
• Company Spinoff

The Interim CMO Approach

An interim CMO jumps in to prioritize their strategic and tactical list. Hands-on learning about the marketing team, about the consumer mindset toward the product, and about competition rank high on any list. The CMO must immediately supplement in real-world terms the advance research they’ve already conducted before showing up at the door.

Marketing execs say understanding the existing team is a key priority. Questions like “who do I have, what are they working on, what are their priorities, and where are the gaps,” are among the essential early questions. The target: to get a functioning team in place straightaway.

Understanding the brands follows closely. Who’s buying the product? What insights do they have?

Companies that ignore the need for top-notch marketing strategies put themselves at risk: for example, it’s great to see an early-stage company packed tight with engineers and coders, but second-rate marketing can rob the product of its full market potential.

So many businesses still think simply in terms of ‘I produce a product’ and ‘I’m going to sell my product’ and that’s all there is to it, yet they wonder why they don’t have a bigger brand, more sales, and more impact on the world. Well, it’s because you don’t have enough of a marketing presence.

-Robert Jordan, CEO, InterimExecs

A Fractional CMO Solves Big Marketing Challenges

Strategic Marketing Plan

Where are you, and where are you going? An interim or outsourced CMO develops a strategic marketing plan that sets an organization on a clear path to achieve measurable marketing goals. In creating a comprehensive marketing plan, the CMO will also assess internal capabilities and fill any gaps to ensure solid execution across content strategy, advertising, public relations, social media management, SEO, and performance metrics.

Digital Marketing Strategy & Marketing Technology

Today companies have access to a massive potential customer base, however most do not utilize technology at hand. A Fractional CMO can create a strong digital marketing strategy and implement marketing technology and tools that enable marketing automation, scale marketing programs, and help businesses increase revenue and reach marketing goals faster.

Data and Analytics

What gets measured gets improved. Organizations that want to stay competitive and capture new markets must know how to analyze market data and use that intelligence to develop data-driven strategies. An outsourced CMO helps businesses understand and use market intelligence to reach their target audiences, improve customer experience, and increase conversion. A good CMO synthesizes market research data, market forecast trends, and competitor data into a marketing plan that works.    

Brand Identity & Brand Development

How do customers see you and is there a strong brand awareness in the marketplace? Positioning can make or break a company. An interim CMO helps companies build a strong brand and develops a content strategy, brand positioning, and increased brand awareness online while ensuring there is a consistent brand messaging across all marketing channels.

Lead Generation

An interim or fractional CMO collaborates with sales leadership to capture leads, identify prospects, and create sales enablement materials. From content development to marketing automation and CRM management, an Interim CMO can help develop lead generation strategies for all stages of the customer journey.

New Market Entry

An interim or outsourced CMO helps B2B and B2C companies expand their market presence locally and in the global market. Based on careful market research, audience segmentation studies, and competitor analysis, an interim CMO can get a company on track to grow quickly by penetrating new markets and outpacing industry competitors .

Products & Services Launch

Launching a new product or service takes careful planning, and a fractional CMO can be engaged on a project basis to lead the charge in bringing something new to market. Companies can get guidance and leadership throughout all stages of product marketing beginning with product development where a focus is on analyzing competitor products and identifying target audiences. In preparing to launch the product for global distribution, a CMO can ensure success through good product pricing, branding of the product, and a strong roll-out strategy.

Sale, Mergers, and Company Spinoffs

For companies expanding quickly, a project-based or outsourced CMO can guide an organization that has recently acquired a business or merged with another company. A clear integration plan and marketing strategy is essential to creating a cohesive brand that will accelerate growth for a company.

An Interim CMO Creates Marketing Strategies that Scale

  • Hospital, Healthcare, & Medical Device
  • Manufacturing
  • Distribution & Logistics
  • Retail & Ecommerce
  • Consumer Packaged Goods (CPG)
  • Technology & Software
  • Media & Entertainment
  • Business Services

We match management teams and owners with Chief Marketing Officers from InterimExecs’ RED Team, an elite on-call team of leaders around the globe. Engaging the Rapid Executive Deployment Program means you get access to the marketing brainpower you need fast.

National Radio Show Marketplace Features InterimExecs: Temps at the Top

National Radio Show Marketplace Features InterimExecs: Temps at the Top

In an interview with Marketplace reporter, Nancy Marshall-Genzer, InterimExecs’ CEO Robert Jordan, shared his insights on the increasing use of interim executives in public companies, privately held companies, and nonprofit organizations.


The piece discussed how in many cases interim executives are brought in during critical transitions – both in times of crisis and rapid growth. A good Interim CEO or other C-suite executive builds trust within the organization, and often serves as a mentor to set up the team for future success.
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Family Offices Use Interim CFOs to Improve Operations and Make Sound Investments

Family Offices Use Interim CFOs to Improve Operations and Make Sound Investments

There’s no question that the number of family offices is on the rise. A recent study by Campden Research revealed that there are over 5,300 family offices worldwide. About 2,200 of the family offices are in North America. About 67% of family offices that exist today were established after 2000.

There aren’t hard and fast rules on what a modern-day family office looks like. A single family office typically has over $150 million in private wealth and is one family. In recent years, multi-family offices have increased. In multi-family offices, families — related or not —  have shared interests, investment goals, infrastructure needs, or operational requirements. By coming together, they save resources. This way family offices can focus more energy on portfolio growth and increasing net profit margins.

Over the past decade, the way family offices invest has evolved. In the past, family offices stayed in their comfort zone, by acquiring operating businesses in their business sector.

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Interim Executives Help Grow Private Equity Portfolio Companies

It’s not uncommon for private equity portfolio companies to double or even triple growth thanks to merger or acquisition. Albeit positive, rapid growth brings new operational challenges that can stop the upward momentum in its tracks. Interim executives bring the expertise needed to enable growth on a massive scale.

“Sometimes a business will start with $40 million in sales, and through acquisition will be two or three times that size. Often that creates an environment where you need to add to the management team, whether that be the CFO or the CEO,” said Forest Wester, a Partner at Trivest Partners that leverages interim executives to enable growth.

Private equity funds use interim executives in a variety of scenarios. However, these scenarios are typically problems that need to be solved such as the abrupt departure of a CEO.

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Find Executives

Accomplish More in Less Time with the Right Executive Talent

Our executive placement division provides interim and fractional executive talent to owners, management teams, and investors who need help tackling big challenges or untapped opportunities.

We Match You With Executives Who Specialize in Transformation

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QUICKLY GROWING?

What got you to this point will not get you to the next stage of growth.

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IN TROUBLE?

Revenues are declining or you aren’t clear what direction to go.

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LEADERSHIP VACANCY?

Your current executive has left or is not performing as needed.

Let’s Talk About Where Your Business
is Now and Where You Want to Go

Vision without execution is hallucination

-Thomas Edison

HAPPY EXECUTIVES, HAPPY CLIENTS. THERE IS NO OTHER WAY.

Companies don’t call us because everything is going peachy. They call because there is frustration with something or change is needed. We focus on bringing in leaders who approach your business as if it’s their own, getting their hands dirty and inspiring and coaching others to ultimately take your organization to a better state. See a sample of how the RED Team is making a difference:

$50M Family Owned Manufacturer

After two years of decline and $6M in losses, the owners of this California-based food packager had ceased manufacturing. An Interim CEO jumped in, restarted operations, and returned the company to profitability within 12 weeks.

"We were without a CEO, with a very demoralized staff, and were spending more than we brought in. No one in the board room knew what an interim was, but it was the perfect solution."

Randi Zemsky

Tourette Association of America
Randi Zemsky

Portfolio Company of $3B Private Equity Fund

With an outlook to exit one of their portfolio companies in the next year, Arsenal Capital brought in an Executive Chairman to maximize the value of the company, coach the CEO, and ultimately lead the company to point of sale.

"The investment in an interim has proved to be paid back and then some. The company has been profitable and the potential for new markets are close-at-hand."

Chris Caratan

Owner, Family-Owned Manufacturer
Chris Caratan

Economic Subdivision of Native American Tribe

The enterprise arm of the Miami Tribe of Oklahoma saw that a few businesses within their 20 company portfolio were struggling. We deployed an Interim CEO to lead the restructuring effort, expand the executive team and put controls in place.

"Imagine asking your auditor to file on time when 14 days before the filing deadline the Board fires the CFO for malfeasance. The level of trust was enormous, but the Interim CFO pulled it off.”"

Board Member

Public Software Company

Health and Fitness Training

As a fast growing company, Freeletics needed help putting process and systems in place. We brought in an Interim CTO to lead the technology team, instill agile methodologies, and help the company continue to scale at a rapid rate.

"You did everything you promised. You identified a couple of candidates very quickly. You arranged for the interviews immediately and followed through. I would certainly use your services again."

Founder

$2.4B Petrochemical Company

Non-Profit Health Association

When the CEO left Tourette Association of America, staff was demoralized and the office was in chaos. An Interim CEO stepped into develop a long-term plan, stabilize departments and finances while hiring a permanent replacement.

"I knew there was a type of executive that is really good at turmoil. Someone who could come into a broken organization. And that led me to InterimExecs."

Tony Bavuso

Board of Directors, Vision Share
Tony Bavuso

Non-Profit Eye Bank Consortium

The CEO exited, and the board brought in our veteran Interim CEO to develop a long-term plan, stabilize departments and finances while hiring a permanent replacement.

"You did a lot of the work for us so that we know we’re getting a quality candidate. From the minute he showed up it has been nothing but a steady move toward a really bright future."

Chief Doug Lankford

Chief, Miami Tribe of Oklahoma

“For company owners looking to achieve fast growth, the first thing is to look internally and be honest with yourself about where the company is at, what is the strategy, and where is it falling short.”

-Damon Neth, Interim CIO

RAPID EXECUTIVE DEPLOYMENT PROGRAM

Without great leadership companies stagnate. We've designed the RED program for transformational executives going into transformational companies in transformational times.

  • 270 Evaluation
  • Executive Match
  • Statement of Work
  • Operational Roadmap
  • Implementation

CREATE YOUR DREAM TEAM

Time is money without the right executive talent, so we've done the upfront work for you, selecting the top 2% of executives to be deployed individually or as a team.

  • CEO – Chief Executive Officer
  • CFO – Chief Financial Officer
  • COO – Chief Operating Officer
  • CMO – Chief Marketing Officer
  • CSO – Chief Sales Officer
  • CTO – Chief Technology Officer
  • CIO – Chief Information Officer
  • Manufacturing
  • Retail, Services
  • Consumer Goods, Ecommerce
  • Technology, Software, Applications
  • Healthcare, Hospital, Med Device
  • Nonprofit
  • …and more

We generate fears while we sit. We overcome them by action. Fear is nature’s way of warning us to get busy.

-Dr. Henry Link, American Psychologist

EXECUTIVE DEPLOYMENT SERVICES

> INTERIM MANAGEMENT

Executives jump in when change, transition or transformation is needed. Assignments range from 3 months to 2 years, and the interim often trains an internal candidate, helps recruit the permanent replacement, or grows the company to point of exit.

> FRACTIONAL EXECUTIVES

Executive takes a leadership role as needs demand, providing services to companies on a part-time basis. This especially gives organizations that do not yet need or have the resources for a full-time executives, access to top talent for a fraction of the cost.

> PROJECT-BASED LEADERSHIP

When permanent management lacks bandwidth or capability to complete initiatives, executives provide support in projects from global expansion, to technology transformation, process improvement, mergers and acquisitions, and product launch.

> PRIVATE EQUITY EXECUTIVES

PE funds bring in executives to professionalize operations in a portfolio company, put reporting and process in place, grow revenues, prep for sale, or integrate acquisitions. Assignments may be longer (multiple years) to align with the fund’s plan for exit.

Contact Us to Talk About the Type of Talent that Will Achieve Your Goals

NOT SURE WHAT YOU NEED?

You know you have an issue or challenge, but aren’t sure how to best solve it.

In many cases companies begin with an operational roadmap, where an executive provides a clear assessment of the business, prioritizing areas of improvement and defining a path forward to reach your goals.

RAPID EXECUTIVE DEPLOYMENT IN ACTION

InterimExecs has deployed leaders into big challenges and opportunities such as:

  • * Interim CEO, Software Spinoff of $2.8B Parent Org
  • * Interim CFO, Family Owned Security Company
  • * Interim CEO, $30M Healthcare Non-Profit
  • * Interim CIO, $500M CPG and Direct Selling Company
  • * Interim CEO, $50M Food Company
  • * Interim CFO, $80M Software Company
  • * Interim CMO, Data and Analytics Company
  • * Interim CEO, Portfolio Company in $1B Private Equity Fund
  • * Interim CTO, Health and Fitness Company
  • * Interim CEO, $50M Manufacturing Company
  • * Interim CSO, $30M B2B Services Company
  • * Interim CEO, $30M Non-Profit Association
  • * Interim CIO, Software SaaS Startup
  • * Interim Corp Dev, Plumbing Company
  • * Interim CEO, Education Company
  • * Interim COO, CPG Food Processor
  • * Interim CEO, $2.4B Petrochemical Company
  • * Interim CEO, Native American Tribe Corporation

“For companies who are ready to become the game changer in their space, there is huge benefit in calling on leadership that provides a fresh outside perspective and significant experience across industries, company sizes, and stages.”

-Robert Jordan, CEO, InterimExecs