Advice for CEOs

Few if any attributes of an emerging growth or middle market company are more important than the credentials and capabilities of its founder or CEO. For example, imagine an investment banker considering whether to take on an early stage company as a client he will try to raise capital for. Or a venture capital or private equity professional considering whether to invest in such a company. To be sure these transaction and investment professionals will look closely at the company’s positioning, its strategy to win market share, the attractiveness of its products and services, the skills of its organization. But it is their assessment of the CEO’s track record and abilities and the management team he or she has assembled that may lead them to take a chance on the company. As one partner in a private equity fund that was considering an investment put it: “If it’s a “B” plan but an “A” team, I’ll take that deal every time.”