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06/25/07
New Face of Employment. Private Equity Firms
Filed under: Interviewing, Position Searching, Job Offer (Situations), Mature professionals
Posted by: site admin @ 11:06 am

The experience of working in a private equity
firm is not like working for a larger, more formally
staffed firm.  In a sense it is like a start-up,
with much of the equipment and some of the
people in place. 

Having worked for a very large firm, a medium
sized firm and now a down-sized private firm
has given me perspective.  While Carole
Hymowitz may be right that managers have
fewer layers of bureaucracy, more operating
flexibility and need to be responsive to a
different drummer, people in the middle levels
often
 - don’t know the stability of the firm,
 - where it is going (limited long-term perspective)
and
 - what time they will be getting home that
night.
[”Fast-pace, High Stakes Lure Executives to
Private Equity,”

Rapid change is more the buzz word than stable
operations.  One is often responsible for more elements
with tighter constraints on spending and execution.

So, as you look for places of employment consider
the possibility of being taken over in a private equity deal.
After an offer has been made, fully explore the one to
three year horizon the company sees for itself.

It does have some positive returns but it will have
a different feel than most other employment arrangements.
 

2 Responses to “New Face of Employment. Private Equity Firms”

  1. BlogMaster Says:

    Alan Sklover
    (Sklover & Associates, LLC, a
    law firm dedicated to the counsel and
    representation of executives in matters of
    their employment, compensation and severance. 
    Sklover & Associates, LLC, 10 Rockefeller
    Plaza, New York, New York 10020 (212)
    757-5000 © 2006, Alan L. Sklover)
    has written in his newsletter several
    differences when a firm goes private equity— 

        significantly lower (salary) and reduced
    (benefits) compensation and heightened
    urgency

        change of culture, business practices
    and expectations.

    My experience has been the same.

  2. BlogMaster Says:
    In an interesting conversation, R and I
    were comparing notes on what it was
    like wokring for and leaving a company
    owned by a private equity entity.

    He had three experiences. I had one, very
    recently.

    We noticed that the people who were not
    severed were the higher ups. They seemed
    to get new titles and greater compensation,
    despite business realignments and cutbacks.

    We noticed that if you did not apply AND
    RECEIVE your REIMBURSEMENTS for travel,
    vacation, sick and compensation time before
    the event, you were not likely to get the full
    amount. A word to the wise is keep up to date
    with all of these matters if you are involved in
    such firms. (See Sklover working wisdom
    newsletter- July 2007)

    We were ‘at will’ employees and had very little
    flexibility over the rules and any changes in
    the rules that were implemented as the company
    changed hands. There are some things you can
    be proactive about. (Sklover’s Negotiating at
    Work Newsletter - 2008 See #9 and #16)

    We also noticed that not all releases are
    amicable. There are winners and losers,
    as a result there is good practices in leaving
    a company. (Sklover lists 21 in 2006 - #2.)

    We also were told that we may be asked to
    come back to work if things change. Should
    we consider going back to work for them?
    We indicated that we should be asking for
    considerably more– salary, benefits,
    professional opportunities to grow and
    learn, and other things that are important
    to us.

    I have noticed dozens of people invited back
    at lower pay and benefits and no security.

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