HOW MIDDLEGROUND CAPITAL SECURED A CEO AND CFO FOR THEIR PORTFOLIO COMPANY ROLL-UP
November 29, 2023
At A Glance
The new CEO and CFO will be aiding the portfolio company’s EBITDA & Revenue growth.
REASON FOR THE SEARCH
Middleground needed a CFO & CEO for a buy & build roll-up.
THE PRIVATE EQUITY FIRM
MiddleGround Capital is a Private Equity firm that invests in B2B companies in the industrial and specialty distribution sectors in the lower middle market in North America. They are differentiated as true operators who have experience working in and managing businesses that range from the lower middle market to Fortune 500 companies. They make control equity investments in businesses that can benefit from the hands-on operational expertise they bring to the table. The firm partner and align itself with management teams to execute a customized value-creation program that drives equity value back to their investors as well as management. Their hands-on approach, in-house operational expertise, and friendly and hard-working demeanor of their team differentiate us from competing firms. They currently have 15 portfolio companies which are soon to be 18 due to recent deal acquisitions.
THE PORTFOLIO COMPANY
There is currently a roll-up of 4 advanced manufacturing companies with a combined revenue of $25 MN and each business has a president. They have predicted a $100Mn growth to $200Mn in 3 however, believe they have the potential to reach $300MN.
The first company is Megatech, located in Quebec City, Ontario Canada. They are the leader in the machining industry, distinguishing itself from its competitors by its exceptional quality and precision.
The second company is based in the San Francisco area. They do custom fabrication, machining, powder coating, and assembly. They process a lot of high-margin / highly engineered products for many industries including medical and defense.
The third and fourth company has not been disclosed.
THE SEARCH REQUIREMENTS
- previous CEO and CFO experience
- Advanced manufacturing background
- Experience in Polyjet, Fused Deposition Modeling, Selective Laser Sintering, Multi-jet fusion, Stereolithography, Direct Metal, Laser Sinterin
- Traditional manufacturing, CNC Machining, Precision Sheet Metal, Injection Molding experience
- Buy & build experience
- Understand particular group of processes
- Integration experience
- Run multiple site switch multi- complexity
WHY RAW SELECTION
Raw Selection is proven in completing difficult searches and this search was no different. We currently have a strong working relationship with Middleground Capital and they came to us with the challenge of finding a CEO and a CFO.
Finding a CEO and CFO at the same time was tough as naturally, most candidates wanted to know who they would be working for before they got too deeply involved in the process however, we had only the first 2 companies of the roll-up available to disclose. This led to a lot of understandable hesitation, a longer search process, and a large search for the right candidates who were willing to be patient and open minded.
THE PROCESS
Raw Selections 15-step processes was used repeatedly by our Principal, Jack Burns, and our Senior Associate, Mo Vali. Mo’s efforts and commitment to this search have been commended across the entire team as he was the driving force to ensure the perfect match was found for the CEO and CFO position.
We were able to create an exceptional talent pool of over 1000 people collectively for both searches and identified 64 potential profiles for the CEO role and 67 for the CFO role which were then both fully evaluated and cut down to a shortlist of 20 and 28. All of whom had been fully interviewed and measured for culture fit.
Raw Selection identified an exceptional individual for the CEO role, Brian Marston, and Denis Mckeen for the CFO role. Both were subsequently hired.
THOUGHTS ON THE SEARCH
“Brian & Dennis are both great at what they do, I am sure they will work very well together. I am looking forward to seeing them knock it out of the park for this platform.”
Jack Burns- Principal of Raw Selection
This search has been a great success. Although it is still early days, Middleground Capital and its portfolio company roll-up will be able to start building out the rest of its senior management team. Currently, we are working on a head of sales search for them.
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 96% of placed candidates still in their roles after 12 months.
If you are looking for new talent, please get in contact with Jack today, at jack.burns@raw-selection.com
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 96% of placed candidates still in their roles after 12 months.
If you are looking for new talent, contact us now.
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