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Private Equity firms typically purchase two types of companies: 

1) Promising Companies Poised for Growth and Expansion
2) Fixer Uppers Badly in Need of Repair



To successfully grow either type of company three components are required

1) The Right strategy 
2) Capital
3) Experienced Managers

Lets face it; Private Equity is a risky business...rewarding, but risky!  To increase the possibility of the rewards; the risk must be mitigated to the lowest level humanly possible. 

According to a recent study by RHR International; 70% of Private Equity failures are attributed to MANAGEMENT!

As a senior executive with 15+ years of experience; I agree with the findings of RHR International 100%.  My former career as a healthcare executive would have qualified for working in the Fixer Uppers Badly in Need of Repair category Private Equity firms invest in.  I recall many days our senior executive team being frustrated with our corporate leadership performance, but the true opportunity was for us to allow our leaders the opportunity to work in a capacity that allows them to utilize their natural behavioral style.  

During this weekly Private Equity Human Capital Series, I will explore the process Private Equity firms can augment the typical company wallet biopsy with Human Capital tools that identify the natural behavioral style of current and potential leaders that increases the likelihood of investment rewards.

Next Weeks Topic:
The Benefits of Hiring for Natural Behavioral Style
 





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