Mergers and Acquisitions: Rami Cassis on why GPs need to adopt radical strategies to survive the current deal drought

Rami Cassis wrote an article for Mergers and Acquisitions on themiddlemarket.com, advising on how GPs can drive value in their portfolio companies in the current private equity market.

In the article, Rami advised that GPs can no longer rely on speculative strategies like secondaries or injecting their own capital and instead need to adopt radical strategies. This includes making fundamental operational changes in their portfolio companies, starting with changes at the management level.

He proposed the following three options:

• Diversify management: GPs can bring in professionals from non-financial backgrounds, such as marketing or HR, to the C-suite to introduce fresh perspectives and creative problem-solving approaches. This diversification can help companies better understand markets and adapt to shifting dynamics.
• Synthesize roles: GPs should break down departmental silos and consider merging C-suite roles to foster innovation and streamline operations. This can make organizations more agile and better positioned for growth.
• Take direct control: GPs with operational experience should consider stepping into CEO roles within their portfolio companies. By doing so, they can ensure that the vision and strategy are executed effectively throughout the organization.

In summary, Rami argued that GPs need to be bold and hands-on, making significant operational changes at the top levels of management to drive long-term growth and value in their investments.

Read the full article here.