REASON FOR THE SEARCH

The company had an underperforming CEO who lacked the ability to implement brand identity and a clear go to market strategy.

THE PRIVATE EQUITY FIRM

Blackford Capital is a family and founder-owned firm, headquartered in Michigan. The firm acquires, manages, and builds lower-middle-market manufacturing, industrial, and distribution companies. The Michigan-based firm boasts over $60 million in transaction value and has made 34 acquisitions, priding itself on its long history of value creation.

THE PORTFOLIO COMPANY

Boston Trade Interior Solutions was established in 1979 and completes more than 200 design and construction projects per annum. They are headquartered in Illinois and have three sites across the US. The company has recently purchased three bolt-on companies.

The company’s culture is fast-paced, and the business aims to build strong relationships with customers. They focus on delivering results in a timely manner and upholding their commitments.

THE SEARCH REQUIREMENTS

Raw Selection Executive Search was authorized with conducting a US headhunt for a Chief Executive Officer (CEO) for a business services organization that primarily operated within the hospitality industry. The client specialized in the interior refurbishment of upper middle market and luxury hotels. This search required that the talent be:

• An expert in add-on acquisition integration
• Seasoned with achieving not only a desired exit multiple, but having the resolve to execute on successful PE Sale (Finding potential buyers, due diligence experience, and post-acquisition plan outlay).
• An operational strategy

WHY RAW SELECTION

The client had previously investigated the market, however, they were unsuccessful in finding the calibre of talent needed for this role. Raw Selection Executive Search took into consideration the ambitions of the PE firm when finding someone. They needed to ensure they had the right operational experience to guide a design-led organization into the commercial realm of conducting ‘business’ within the hospitality sector.

It was a challenge to attract a PE profile who had intimate understanding of the hospitality industry down to the granular detail. They needed to understand how significant growth could be realized in a market that has been impacted by the pandemic and how the client can grow its customer base by opening up into new markets such as luxury hotels, residential, and senior assisted living. It was critical to find an individual who had a demonstrated history of leading organizations to exit.

These factors had to be considered in light of a challenging location, Chicago. The talent was acquired from out of state, but the challenge of propelling this client as the dominant force within the hospitality industry was what ultimately excited the talent to accept this position. We made sure the talent had PE exit experience; acquisition integration experience; acquisition foresight and successful execution; phenomenal operational ability that was reflected in EBITDA and Revenue growth.

However, Raw Selection is proven in completing difficult searches and we were able to fill this search with an excellent fit.

THE PROCESS

The market was analyzed and mapped for desired talent. Detailed conversations with potential candidates were used as a yardstick to determine their subject expertise but also operational capability.

Outside of direct competitors, talent was mapped to similar market verticals outside of traditional ‘hospitality’. This proved fruitful as the talent came from a furniture & fittings background who had extensive experience in dealing with luxury hotels.

Raw Selection commences every search by discussing and understanding the full search requirement and brief. Raw Selection’s Senior Associate, Sean Butt, led the search and worked with Managing Partner, Alex Rawlings, who, with the cooperation of Paul Doyle, the hiring manager, built out a full picture of the company, the employees, the culture, and exactly the type of profile that was needed to succeed in this position.

Raw Selection followed our extensive 15-step search process, identifying 100+ potential profiles which were fully evaluated and then cut down to a shortlist of 3-5 candidates, all of whom had been fully interviewed and measured for culture fit.

Raw Selection identified an exceptional individual, Jim Goergen, who was subsequently hired for the role.

Overall, this search for what was originally a CEO was an exceptional success.

THE RESULTS

As a direct result of our search, the client has acquired a CEO who has unparalleled operational capability, and is driven to achieve EBITDA and Revenue goals because they are a specialist with understanding the hospitality market.

Due to a demonstrated history of delivering for this client on multiple occasions, Raw Selection is exclusively retained by this client, allowing the PE firm to realize their vision for not only their own brand image but also their associated portfolio entities.

THOUGHTS ON THE SEARCH

To secure the candidate, the interview was conducted at a time to suit the candidate, as there was only a short window of 24 hours to interview the candidate before they were destined for a business trip to Vietnam, SE Asia. I pushed to expedite Raw Selection’s DD process and gained valuable insight into the talent's greatest achievements.

Accompanying a post-DD process, the Managing Partner of Raw Selection worked early hours to facilitate substantive conversations between the PE firm and the talent. Alex presented optics as to why this would be the ideal fit for all parties moving forward. This concentrated effort took place over 7 months.

Once again it has been demonstrated that where other executive search firms falter and ultimately fail, Raw Selection always delivers outstanding talent for a PE firm's portfolio company or firm itself. Raw Selection and its consultants are committed to completing all processes to the satisfaction of our clients.

The initial salary band was not in line with market value for what a top-tier talent would accept; this was readjusted after lengthy market research and discussions with the PE firm.

This search was a definitive success—the client now has the expertise of a battle-hardened and PE-savvy Chief Executive Officer. All parties are aligned on a strategic vision. Both the Firm and the CEO are excited about the journey that lies ahead.

As a direct result of our search, the client has acquired a CEO who has phenomenal operational capability, is driven to achieve EBITDA and Revenue goals because they are a specialist with understanding hospitality market trends and developments. They are invested in being ‘ahead of the curve’; as a result, they will position the portfolio company as the market player within the Chicago area.

Sean Butt, Senior Associate at Raw Selection.

GET IN TOUCH

Raw Selection favors a meticulous approach to talent research. Our process for selecting the right talent means we can boast a 100% success rate for all our retained and engaged C-Suite clients, with 100% of placed candidates still in their roles after 12 months.

If you are looking for new talent, please get in contact with Alex today, at alex.rawlings@raw-selection.com