Experiences | Technology

Although the incumbent CEO led this software enabled services company from approximately $100 million to more than $500 million in revenue during his tenure, growth had slowed significantly in recent years – especially in comparison to most of the competition in this rapidly consolidating industry.

Our client had difficulty growing effectively through acquisition, and was faced with the choice of narrowing their service lines to maintain profitability, potentially becoming an acquisition target (a possibly unpalatable choice for the shareholders of the parent company) or putting more money behind this subsidiary and aggressively growing it via acquisition. They chose the latter option.

Our client was drawn to Lantern Partners’ understanding of the sector, and proven ability to consistently recruit executives who succeed under the pressures of rapid growth, turnaround, or leverage. To identify the most qualified candidates, we spoke with Directors and CEOs for companies in “sister” sectors, private equity investors and investment bankers active in the space, and senior executives at competitors. We focused our efforts on those prospects that had the proven competencies to aggressively build a similar business through acquisition balanced with solid organic growth

We presented five qualified candidates, three of whom participated in more in-depth interviews before an extensive selection committee during the four-month search process. The successful candidate had worked in our client’s industry as a divisional general manager at two competitor companies, but had never served as a CEO. Further, this candidate had not served in this industry for a few years since taking a detour to serve as COO for a private-equity backed roll-up in a completely different sector.

Although we had presented candidates from direct competitors, they lacked the mergers and acquisitions expertise of the successful candidate. We convinced our client that competencies, rather than functional experience, were more valid predictors of future performance, and even though the successful candidate had taken a hiatus from their industry, his skills made him the best choice.
Our placement has more than doubled the revenues and profits of this company, positioning them as one of the top players in its industry.