Key Takeaways

THE WRAP-UP //

When it comes to securing your company’s infrastructure from cyberthreats, the person in charge of the organization’s security function should report directly to the CEO or COO, not the CTO. The CTO’s job is to deliver technology in the best, most efficient way possible to support sales, whereas the security function should be tasked with protecting infrastructure and software and be able to provide unbiased feedback to the CEO. “Securing Your Merger: Managing Cyber Deal Risk,” p. 10.

Tech giants like Google and Microsoft are sending employees back to the office, but that doesn’t mean mid-sized companies should follow suit. In fact, offering a chance to work from home could give middle-market employers a once-in-a-lifetime chance to snatch up high-quality talent away from corporate behemoths as they seek a more flexible work option. “Remote, Office or Hybrid? How MidMarket Businesses Can Make the Right Choice,” p. 12.

Even if a company survived or thrived over the past few years, the business and its investment bankers have to show prospective buyers that there are continued opportunities for growth that are defensible. Right now, investors are willing to sign on for stories that include growth of the customer base, future acquisition potential or new product offerings, but the narrative has to be strong and likely include more than one of these growth paths. “Peeling Back the Curtain,” p. 40. CATCH UP QUICK: From hiring trends to strategies for positioning an exit, here are a few of the highlights from this edition of Middle Market Executive.

Having a stable of C-suite and board-level talent in the wings can benefit private equity firms in numerous ways, including earlier access to deals in niche industries. Now that targeted deal sourcing is the norm, partnering with an experienced executive in a particular sector can help firms see deals that intermediaries aren’t marketing widely. “Follow the Leader,” p. 34.

More than one-third of companies say they are willing to hire remote workers anywhere in the world, according to The Conference Board, which surveyed more than 300 HR executives primarily from large U.S. companies. That’s a significant increase from the 12% that were receptive to that approach before COVID. “Hiring Talent Gets Easier with a Larger Pool of Candidates,” p. 46.

Firms like TGC Impact are leaning into the opportunity to help businesses owned by women and minority founders reach th eir next stage of growth. Today, women-owned businesses account for 1 out of 5 businesses with revenues over $1 million. In 2020 minority-owned businesses generated more than $400 billion in economic output. TGC is focusing on the South, a region that’s home to 150 Fortune 500 companies, and one with a strong presence of women and minority entrepreneurs. “Bringing Transformational Capital to Lower Middle-Market Southern Businesses to Build Market Leaders,” p. 52.