Frustration, loss of time, and painful financial consequences often arise from choosing the wrong search partner. Its prevalence was a huge catalyst for us launching our business. We believed a boutique retained executive search firm that understood the nuances of PE, was persuasive enough to cut through the clutter of heavy competition for A Players, and would utilize a proven process for candidate evaluation could be indispensable – especially a firm focused on serving small and medium-sized PE-backed businesses, as they were woefully underserved. In the 15 years since Spectrum Search Partners identified this void in the marketplace, we have worked with 130 PE firms and have supported them in achieving their value-creation goals through the most important mechanism: Exceptional People.
We specialize in recruiting seasoned leadership talent to PE-backed businesses and have placed nearly 500 executives who excel in these demanding, hands-on environments. This unique skill cannot be executed by a recruiting generalist. It requires PE-specific search experience, crafted from thousands of hours of work and research to support high-stakes, complex solutions. In Private Equity, expectations are high and the pace moves swiftly – you must “run at private equity speed” and add value every step of your search process. Listed below are valuable suggestions for picking the right partner.
What Should I Know and How to Avoid Future Choosing the Wrong Recruiter?
- In selecting a search firm, it is always tempting (and on the surface “safe”) to choose a well-known brand or a well-meaning, but often uniformed, personal recommendation. To succeed with Private Equity-backed portfolio company searches, you must focus on who will be in charge of your assignment and evaluate the talent? How many high-performing executives have they successfully placed in these specific types of situations, and do they truly understand what success looks like in the PE world? It is critical you secure alignment from the very start.
- There are key search industry concepts (such as blockage) that can remain hidden if one is not in the know. It is critical to understand how restricted is the search firm you are considering: can they hunt freely, or are they contractually prohibited from recruiting the types of talent you desire? This can be an enormous advantage for selecting a boutique firm – they have far fewer restraints.
- Do I come first? Will I see your best candidates that are ideal for my search? Or do they go to their preferred (i.e., more lucrative or strategic) clients? Boutique firms will always put you first.
- Why is a retained search firm the way to go for recruiting a senior-level executive? It conveys to candidates you are conducting a serious process and are committed to preserving confidentiality.
How Do I Choose the Right Partner for a Retained Executive Search?
- Qualify: Before committing, speak with prospective partners and ask how they would approach your search. This provides a window into their sophistication and familiarity with these situations. Inquire how they persuade candidates who are not looking. Make sure they have the domain expertise you need. Ensure chemistry feels right.
- Depth: Do the answers to your questions contain critical insights? Are they sharing valuable things needed for a successful outcome, such as how the challenges and demands from other similar searches were solved? Do they know the right compensation and equity package; the proper title; and do they have the ability to passionately represent your brand? Have they discussed potential tradeoffs? Did they proactively address any negatives head-on?
The Benefit of Partnering with a Boutique Search Firm such as Spectrum Search Partners
- Aligned Interests: Private Equity invests in and nurtures entrepreneurs. By selecting Spectrum Search Partners for your retained executive search, led by its founders/owners (who run the senior-level searches), you’ll experience a far greater level of commitment. We all win with a fantastic outcome.
- Every Client Matters: Our livelihood depends on doing whatever it takes to satisfy you. Our goal is to make you a partner for life. If needed, we will call and qualify as many people as needed to ensure we find you the right candidates. With a 99% completion rate of our search assignments, our persistence and refusal to quit are ingrained in our company’s DNA.
- Your Time Is Money: We run an efficient, honed process that will guard and maximize your time. Spectrum uses Scorecards to evaluate executives against your Investment Thesis so you can attract the right leader for each unique portfolio company.
- Our Specialty is Private Equity: Partnering with a Subject Matter Expert has many advantages, as PE is its own industry with its own language. Beware of search firms who say they can do it all.
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Authored by Tom Shahnazarian, Kevin Hahn, and Jay Lane, Founders of Spectrum Search Partners, a Denver, CO-based retained executive firm that specializes in private equity. If you wish to reach out to us, please write to: tom@spectrumsearchpartners.com, khahn@spectrumsearchpartners.com, or jay@spectrumsearchpartners.com.
