Kirk Harrell

Christian & Timbers recently completed an analysis of C-suite compensation trends ➡️ https://bit.ly/3NN8Dwo - at private-equity backed tech companies. ▪️ We examined data from over 100 companies and 400 leaders, covering compensation for CEOs, COOs, CFOs, and more for 2023-2024. ▪️ The data shows a 2.1% increase In total cash compensation over Q3 2023 with a 2.4% increase in equity compensation and a 1.8% increase in cash compensation. ▪️ The study provides additional insights into variations based on company size and investment stages, ranging from $10 million to $1 billion in revenue ▪️ Women occupy significantly fewer leadership roles, making up only 21.6% of C-suite positions, including 4.2% in CEO roles. Check out our latest newsletter ➡️ https://bit.ly/48uwkTJ - featuring industry trends, recent successes, and current open searches. If you or your portfolio companies have any executive searches or leadership needs coming up, I’d love to catch up and see how we can help. Let me know if you’d be open to a call! #leadership #executivesearch #csuite #compensation #pe #pebacked

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BluWave has a deep bench of 800+ interim CFOs that allow us to quickly and expertly connect private equity firms and their portfolio companies to the exact-fit interim CFOs they need.    In one case study example, a PE firm came to us in need of a stopgap interim CFO for their automotive operations portfolio company. Here's the details of how we helped:   The Situation - Needing to make a leadership change in their portfolio company, a PE firm came to us in urgent need of an interim CFO who could focus on the portco's cash flow and working capital optimization while the search for a permanent CFO was underway. Given the protfolio company's industry, the PE firm not only needed an interim CFO with financial acumen, but one with the ability to handle a complex operational landscape and turnaround skills.   How BluWave Helped - Thanks to BluWave's deep network of exact-fit interim CFOs, we quickly connected them with a select few interim CFOs with the exact experience they were looking for.    The Outcome - The client selected their preferred interim CFO from our presented options. Their leadership marked a significant turning point for the automotive manufacturer, helping them tighten cash flow, meet reporting requirements and guide them through a crucial transition period.   When you need an exact-fit, PE-grade interim CFO, contact BluWave and we'll be ready to support.   #interimCFO #interimchieffinancialofficer

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Unlock the potential of the Lower Middle Market! 📈 Discover how executives can tap into the LMM to drive value creation, increase cash flow, and secure lucrative roles in private equity. Our latest guide, "Unlocking Value in the Lower Middle Market: A Numbers-Based Playbook for Executives," offers actionable insights and strategies to excel in this dynamic space. Don’t miss the opportunity to monetize your expertise and create new streams of income! 💼 Discover more about Blackmore Partners: https://buff.ly/42iNmB3 📅 Have questions? Schedule a meeting with our Director Chris Melton: https://buff.ly/46DZD46 #PrivateEquity #ValueCreation #LowerMiddleMarket #ExecutiveRoles #BlackmorePartners

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PE insights - from the latest episode of "Behind the Deal" with Orlando Bravo & Carl Thoma at Thoma Bravo. Great lessons from Orlando Bravo who discusses losing money and making many mistakes early in his career, Carl Thoma (Orlando's mentor): On People: - "PE is a people business." - "Deal-making is such a people business. It's not like you can sell the stock if you don't like it, you're stuck with your partners. " (Good point - unlike public equities investors, you are in it for the long-term, with your team, partners, and your portfolio companies - it's a people business). ------ On Making Mistakes: - “Mistakes are meant to be stepping stones to success - not stepping stones to ultimate failure.” - "People learn from their mistakes." - "Mistakes early on make great investors but you have to make sure you don't make so many mistakes that you lose confidence... and just don't make the same mistakes again". - "When you make mistakes, you have to capitalize on that." ------ On losing money (Orlando asked whether Carl was going to fire him): - "I've sunk $50 million of experience into you, so you are a star now and you've got a lot of good, expensive training." - "I'm not sure you could have been as successful without stumbling a little bit early on." - "You had pride in your work and drive that it didn't put you in a stumper and didn't leave the industry. I think 1 + 1 = 10, drive and some failures are good experience." ------ On Teamwork: - "Just like in sports, today you just cannot have individual players that are brilliant but not working as a team. We got away with that for 25-30 years of private equity, but now it's become too competitive. We've got to function as a team." ------ On communication: - "You can resolve so many issues if you just communicate." ------ Sources: https://lnkd.in/eVk_Wxwq https://lnkd.in/eem_DquZ ------ #pe #privateequity #business #leadership

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What do you do when growth isn’t an option? This is the reality PE Sponsors and #middlemarket CEOs are navigating in today's challenging exit market. - Operational Improvements: Get leaner, cut the fat. Tighten supply chains, cut costs, and improve team productivity to drive internal value. - Digital Transformation: Data is key, use it to drive better decisions. Using business intelligence and AI today will position the business for future growth. - Adapting to Market Realities: Short-term wins are necessary, but they need to be balanced with scalable, sustainable growth. At Strategic Ops Partners, this is what we do—execute our proprietary operational playbook to unlock EBITDA. #PrivateEquity #ValueCreation #OperationalExcellence #ExitStrategy

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Thanks, Axial, for your findings. I'd rank the Management Team high in the business description. As investors, we are buying their core competencies, track record, market position, and strategic fit. #privateequity #buyout #independentsponsor #growthequity #food #beverage #CPG #healthwellness

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Last week, we shared the first part (1/2) of our perspectives on vertical SaaS (vSaaS), more specifically on which metrics define the performance of vSaaS businesses and outlining the benchmarks for each of these metrics. If you have not yet read the piece, give it a read here - https://lnkd.in/d94n2bgN This week we published the second part (2/2) where we call out certain strategies deployed by successful vSaaS companies like Procore Technologies Toast ServiceNow Zenoti and others that can be used to improve the metrics that matter. Read on to layer the numbers with the strats- https://lnkd.in/dPkmWFax Do reach out if you are building in the space or want to exchange notes / feedback on the perspectives. #fintech #verticaSaaS #embeddedfinance #investments

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Series A or B wondering when to bring in a VP of Finance or CFO? It’s a crucial decision that can shape the future of your company. At this stage, financial leadership is not just about managing numbers but also scaling processes, securing funding, and driving strategic growth. My colleague Paul breaks down key signs that it’s time to hire and indicators for choosing between VP of Finance and a CFO #FinanceLeadership #CFO #StartupGrowth #SeriesA #SeriesB #NextGenLeadership

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PE - Insights from "Constellation Software" Shareholder Letters Some of the key investment takeaways Constellation Software (CNSWF - https://buff.ly/3Coo3V8 ) These highlight a strategic focus on long-term growth, disciplined investment practices, and the importance of governance and engagement, all good insights for tech PE: - Disciplined Investment Approach: strict adherence to specific acquisition hurdle rates, reducing risk and underscoring the importance of rigorous investment criteria - Acquisition-Focused Growth: they target 100 acquisitions annually, underscoring an aggressive portfolio expansion strategy attractive for growth-oriented investors - Flexible Capital Structure: exploring various financing options for acquisitions, especially in downturns highlighting proactive financial health management - Long-Term Horizon: emphasis on indefinite investment holds to maximize returns, favoring long-term strategies over short-term gains - Post-Acquisition Reviews: they conduct detailed after action reviews (AARs) post-acquisition to refine investment strategy, a best practice for continuous improvement - Decentralized Decision-Making: Constellation operates with small, autonomous business units (just like portfolio CEOs & execs) to foster agile leadership and decisions (i.e. the PE firm doesn't tell the CEO what to do but works alongside collaboratively) - Behavioral Economics: Constellation incorporates insights from behavioral economics to mitigate cognitive biases, enhancing decision-making rigor Constellation Shareholder Letters: https://buff.ly/4fu29Pc ------------------ #pe #privateequity #tech #ceo #cro #saas #gtm #growth #middlemarket #boardofdirectors #board #revenue #revenuegrowth #investing #investment #finance #business

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Great analysis by the AGC team on SaaS public company comps. It's worth a look as we recalibrate mid-way through earnings season. The analysis aligns with the broader Nasdaq equity performance, where the Mag 7 (or fab 4 now :-)) have shown more resilience than the rest of the market. #AGC #SaaS #EarningsSeason #Nasdaq #EquityPerformance

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PE - PE Acceleration Toolkit (i.e. not Playbook) What commercial, GTM and growth areas do you cover in your "PE Portfolio Company Toolkit" (i.e. some funds like Vista Equity Partners call it a Playbook but I refer to it as toolkit with the aim of it being a participatory, not a prescriptive playbook)? Some ideas* come to mind - what else? (* i.e. Commercial/GTM/Revenue Growth - not including Product, Engineering, R&D and other functions) 1. Sales Optimization   - Sales Org Structure   - Sales Management Process   - Sales Prospecting & Outbound   - Sales Process Engineering - Pipeline Management - Forecasting & Commit Process - Forecasting Rollups - CEO & Board   - Sales performance metrics and KPIs   - Channel Sales, Partner and alliance programs   - Rev Ops & Sales Enablement   - Sales Quota, Compensation & Incentives   - Sales Tech & Automation 2. Marketing Optimization   - B2B Demand Generation strategy   - Marketing Management - Marketing Process Engineering - Defining Lead Nomenclature - Campaign Management - Strategic Messaging Architecture   - PLG - Product Led Growth   - Digital & Inbound marketing    - Account-based marketing (ABM) - Customer Marketing - Product Marketing - Marketing/Sales Alignment & SLAs   - Marketing Metrics / KPIs   - Marketing Tech & Automation 3. Customer Management, Success and Retention   - Customer onboarding processes   - VOC - collecting and analyzing customer feedback   - Customer Segmentation   - Customer Management Processes   - Proactive customer Engagement   - AM & Expansion Sales   - Renewal strategies   - Customer loyalty strategies   - Customer support optimization   - Customer metrics and KPIs 4. Pricing and Packaging   - Pricing strategies   - Value-based pricing   - Discounting strategies & pricing transparency   - Subscription and usage-based models   - Pricing experimentation and A/B testing   - Competitive pricing analysis 5. Operational Efficiency   - SaaS metrics (CAC, LTV, churn rate, etc.)   - Process automation and workflow optimization 6. Talent & Culture   - Leadership & Management    - Attracting and retaining top talent   - Building a high-performance culture   - Performance Management   - Remote work best practices   - Continuous learning and development 7. Community Building   - Community creation & engagement   - Building an ecosystem around the product   - Customer Advocacy Programs 8. Data and Analytics   - Data-driven decision-making   - Business intelligence (BI) tools and dashboards   - Data governance, security and privacy   - AI applications Other: 9. Product (& GTM Alignment) 10. M&A (Commercial/GTM integration) 11. Finance (Supporting the GTM org) 12. GTM Board Updates & KPIs 13. Etc. ------------------ #pe #privateequity #business

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Unlock the secrets to CFO compensation in the tech sector with our groundbreaking analysis. Discover how private equity tailors lucrative compensation packages to attract and retain the industry’s finest financial leaders. ▪ Lower-Middle Market: Base salaries are competitive, complemented by meaningful bonus opportunities and equity stakes that reward financial acumen and successful outcomes. ▪ Mid Market: Compensation packages are designed to reflect the financial management complexities of a growing tech firm, with substantial bonuses and equity options that align CFOs with the company’s financial health and success. ▪ Upper Mid Market: Offers top-tier salaries, significant bonus percentages, and equity stakes that scale with the CFO’s impact on strategic financial growth and company performance. Swipe through our carousel for a visual exploration of how CFO compensation evolves with company growth in the tech industry, brought to you by Christian and Timbers. For more detailed findings and to understand the implications for your business Read More ➡️ https://bit.ly/4hgCs5P #leadership #executivesearch #Csuite #CFO #compensation #tech

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Don't call it a comeback - growth equity deals on the rise again per PitchBook. From the attached article: "According to PitchBook’s latest US PE Breakdown, PE growth investments were on the rise in the first half of 2024, accounting for about 23% of all PE deals and surpassing leveraged buyouts, which made up 19%. That reverses a long-time trend. Growth investments in the first half of 2024 are already exceeding those from the whole of 2023, when they accounted for 20% of all PE deals." The heightened cost of capital is obviously driving a lot of this dynamic. However... it is interesting to note that PE funds are seemingly more willing to take minority stakes - a dynamic that is historically more from the VC playbook. The hard truth is that, even in a challenging funding and valuation environment, growth stage companies - both PE-backed and VC-backed - still offer large institutional investors a compelling return profile. A growth-potential profile not often available in the public markets. This dynamic alone will push PE and VC private market investment through and beyond the current challenges... Endeavor Colorado Zeb King Tegan Stanbach Kathryn Dickson #privateequity #venturecapital #entrepreneurship #innovation #founders #startups #investing https://lnkd.in/gKZKwXct

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Join us tomorrow for a panel discussion on the complex relationship many FirstGens have to money and how that affects founders, investors, operators and others. See you tomorrow! https://lu.ma/9rixyzgs

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PE Portfolio Companies - Cost of Revenue is Up (& Driving Profitable Growth in 2025) During the PE Conference in New York, a lot of my peers in PE confirmed a common trend: - Rising costs and market challenges require PE portfolio companies to focus on GTM/commercial efficiency - Many companies are experiencing declining returns on GTM investments, with growth yield per dollar spent on sales and marketing is dropping nearly 50%+ in the past 5 years - Cost of Revenue has risen by nearly 70% in the past 5 years thus significantly impacting commercial efficiency (I noticed a few metrics related to this during one of the GTM/Growth panels in a research study provided by SBI, The Growth Advisory) - For PE firms to have successful exits, generate high ROI, and to get DPI for LPs, it is key to drive profitable growth effectively while reducing cost of revenue (i.e. efficiency + effectiveness are key) --------- With 2025 around the corner, what key value maximization strategies in PE will set the stage for profitable growth? Here are 8 takeaways - key PE value maximization strategies to consider for improving Revenue Growth profitably include: - Pipeline Creation: build a Lead Generation Machine that fuels the sales pipeline - More effective ICP targeting - Process engineering and optimization - Focus on existing customers with more effective expansion sales and retention - Effective team onboarding and development - RevOps - using GTM analytics for early detection of leading indicators to be able to see around corners - Effective GTM Enablement - Help the team focus on "Revenue Generating Priorities" (RGPs) - the simplest path to enable this is with GTM automation of perfunctory tasks (i.e. a solid and modern GTM tech stack) including GTM focused AI #pe #privateequity

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The new quarterly review is live! Each quarter, I dive into the latest trends and shifts in the venture capital market, covering both the broader macro perspective and the unique insights we’re seeing at Florida Funders. Check out my latest article to stay informed on what’s shaping the VC landscape and how we're navigating it at FF. Always eager to hear your thoughts – let’s keep the conversation going! #VentureCapital #FloridaFunders #MarketInsights

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I often feel like "Future of Work" means everything and nothing all at the same time. But what does it mean when we say we are investing in the future of work at Reach Capital? In general, I like to think that we are investing in products and tools that help to elevate workers and create pathways for economic mobility, wherever they are in their careers - exploring careers, landing the job, up killing / Reskilling, supporting and augmenting them throughout their work, providing the benefits/enablers they need to thrive in the workplace, and more. We've invested in companies, including WorkWhile (a worker-first on demand labor marketplace for hourly workers), Replit (collaborative IDE for developers), Stepful (training for the allied healthcare workforce), Take2 AI (simulation-based talent acquisition), Hopps (on-demand expert help marketplace), and so much more. As the concept of work, continues to change rapidly we've surrounded ourselves with an amazing advisory board that supports us and our portfolio companies (Maisha Gray-Diggs (MGD), Dermot O'Brien, Gordon Trujillo, Ekpedeme "Pamay" M. Bassey, Guillermo Miranda, David Landman, Ph.D., Q Hamirani) and have committed to continuously learn (check out our latest ReImagineWork report linked in the comments).  If you're building a company that is focused on improving the future of work, please reach out! You can find me at [email protected]. Some areas I'm personally interested in right now: 👩‍⚕️ Tools to augment clinicians and reduce burnout (e.g. workflow automation tools, business-in-a-box for self employment, health system focused retention and engagement tools) 👩‍🏭 Products that help to increase supply / liquidity or improve the productivity of existing supply, through learning in the flow of work, in supply constrained markets (e.g. manufacturing) 💻 Skills inference tools that surface skills insights from the work people actually *do* and help large enterprises with workforce planning

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