Getting Equity Partners Aligned

What We Can Do

CEO to CEO helps equity partners in midsized companies become and stay aligned with each other and business goals. At times, we get involved early, helping partners agree on strategy and tactics for the business, operational responsibilities, and peer performance review processes. When we get involved later, we frequently act as mediators, helping to reduce friction.

For large partnerships, we often help with communication, engagement, and leadership. We typically work with three types of partnerships: professional services firms (e.g., law, engineering, accounting), family businesses, and ownership groups (business partners).

We start by examining why the business exists, confirming that it matches owners’ current perception. These discussions often surface conflicts about growth – e.g., that not all businesses should try to grow fast. Some partners want to run their companies to suit their lifestyles. In every case, a business must be run in a manner that can keep it competitive – sustainable for both the business (in its market) and its owners.

How We Do It

Our services here depend on the type of firm:

For Professional Services Firms:
Many of these firms reward partners who generate and lead client work, but not management of the firm itself. The result: no clear career path for partners who want to grow (beyond growing technically). Without a leadership track, the firm may find itself pulling from a small pool of reluctant candidates to fill a CEO slot or similar role. Additionally, a new CEO may struggle to rally a close circle of leaders-in-training.

We help such firms create structure around business leadership, including growth plans, job descriptions, compensation for leadership roles, communication, and committees that connect business/administrative work with partners. We recognize that these firms prefer to change slowly, and we work hard to ensure partner support.

For Family Businesses:
In these businesses, family members often confuse the roles of owner, board member, executive, and family member. First, we help management create clarity of purpose: For example, is this business more about maximizing profits or employing the family? Second, we clarify each role, from owner to family member, including rights, responsibilities, and expectations. This helps prevent the business from damaging family relationships.

Our consultants often are asked to help guide a transition in management from one generation to the next, or when the next generation chooses not to run the business. We consider the objectives and needs of family members alongside the business objectives. We frequently help set up a board of directors before ownership transitions, to steady the course as new leaders settle into their roles.

For Ownership Groups:
When multiple owners form a business, they agree on a common vision and purpose. But over time, equity partners’ goals may change, for several reasons. Personal lives may change; the business may deliver different rewards than planned; and the business may require more attention than expected.

We help these partners communicate and re-establish consensus on business goals, who is willing to do what, and how to reap maximum results.

Sometimes, a partner needs to exit at this juncture. At other times, an additional partner can reinvigorate the business with external energy. We help partners decide on such next steps.

For long-running partners, progress and communication can hit a wall. We act as a neutral sounding board to help examine business issues and solve relationship challenges.