Savvy PE and VC investors are discovering that the freelance economy is paying major benefits as a strategy for M&A.
The proliferating pool of freelance investment banking, strategy consulting and accounting talent is making it easier for investment firms with limited resources to perform due diligence on investment opportunities and support their portfolio companies at an affordable cost.
Freelancers
The advantages are twofold:
1. Evaluating investment opportunities
PE and VC executives can often recognize a great business opportunity and profit potential even if the business itself operates within an industry tangential to their core focus. Now, savvy investment firms are leveraging interim, on-demand executives with subject matter expertise to support the due diligence process.
2. Supporting portfolio companies post-close
Often, when a new company is first acquired, PE fund managers discover that financial controls are inadequate or missing, and an existing CFO or controller needs to be replaced. Traditionally, the fund partners have to rely on their own senior executives to keep the ship upright until the transformation is complete. Now, they’re finding it more difficult to hire interim executives with relevant prior experience for those roles.
More about this trend, and how to find interim talent to support M&A activity, can be seen here.
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