Senior Operating Partner's Role at Private Equity Firm

02/13/20 • 25 min

We recently sat down with Harry Shimp, Senior Operating Partner at MCM Capital, to discuss his role at the firm and its portfolio companies and thought you might find it interesting. Among other things, Harry covers:

Types of issues a CEO of a portfolio company should discuss with a senior operating partner
Setting the communication and reporting cadence between the portfolio company and senior operating partner
What management teams should expect from weekly calls with a senior operating partner
Characteristics that make a potential portfolio company attractive to a senior operating partner
Maintaining a company's culture after a private equity acquisition
Advice for business owners considering selling to a private equity firm

Types of issues a CEO of a portfolio company should discuss with a senior operating partner
Setting the communication and reporting cadence between the portfolio company and senior operating partner
What management teams should expect from weekly calls with a senior operating partner
Characteristics that make a potential portfolio company attractive to a senior operating partner
Maintaining a company's culture after a private equity acquisition
Advice for business owners considering selling to a private equity firm

Previous Episode

Advantages and Disadvantages of Selling to a Private Equity Firm

We recently sat down with Mark Mansour, Founder and Senior Managing Partner at MCM Capital Partners, in an effort to shed some light on the fundamentals of private equity. In this interview, Mark discusses, among other things:

Options for business owners seeking liquidity or an exit strategy and the advantages and disadvantages of each
An overview of the private equity business model
How private equity firms analyze a company's value and which characteristics play the largest role in the assessment
What a business owner should look for in a private equity partner
Typical reporting requirements to private equity partners for management teams
Advice for business owners contemplating an exit

Next Episode

What Is Working Capital And Why Is It So Important?

What is working capital and why is it so heavily negotiated in M&A transactions? Justin Thomas from Cohen & Company joined us for a deep dive into working capital to discuss how it is calculated and how it impacts the sale of businesses.
1:03 - Working capital definition
2:57 - How does working capital affect purchase price?
6:12 - How does the market most commonly calculate working capital requirements?
7:40 - Is working capital affected by a business's seasonality?
9:19 - Example working capital calculation illustrating when it would positively or negatively impact purchase price
12:23 - What is a working capital collar?
13:46 - What items are most commonly miscategorized as working capital?
15:18 - What is the goal of a working capital adjustment?
17:18 - What is the most common reason for working capital adjustments?
18:56 - How is deferred revenue viewed from a working capital perspective?

Well Capitalized - Senior Operating Partner's Role at Private Equity Firm

Transcript

00:00:00.000

hello and welcome to well-capitalized I'm your host Bobby Kingsbury managing director at MCM Capital Partners today I have with me Harry Shemp senior operating partner at MCM and we're gonna discuss and define his role what it is or what it involves post transaction what are the reporting requirements the appropriate cadence after a transaction and when everything isn't up into the right how do private equity firms typically react would like to start with you providin