In the early stages following an acquisition or during periods of accelerated growth, leadership decisions can significantly influence the trajectory of an organization. Whether the very first 90 days or across the first 18 months, companies often face operational changes, integration efforts, evolving performance expectations, and the need to scale quickly. During these periods, the sequencing of key leadership hires becomes critically important.
At Kaizen HR, we don’t just focus on filling positions. We partner with PE-backed manufacturers, acquisition-stage businesses, and growth-oriented industrial organizations to align leadership hiring with operational goals, investment priorities, and long-term value creation. While every company has unique needs, several leadership functions consistently have an outsized impact during periods of transformation and growth.
1. Chief Executive Officer
It’s the obvious answer, but it’s obvious for a reason. According to a working paper from the National Bureau of Economic Research, 71% of companies acquired by private equity hired new CEOs after the acquisition. Significantly, over 75% of those new CEOs were external hires – the reverse of CEO hires at publicly-traded S&P 500 companies, where 72% of new CEOs were internal promotions.
The first order of business in identifying a new CEO is determining whether this will be an interim hire to steer through change or a permanent hire with a long-term perspective. An interim CEO should be experienced with change management, operational transformation, and stabilization. Their goal should be to address the immediate needs of focus and value creation while the new ownership takes time to vet a permanent replacement. Remember, though: interim leadership is a real, specialized skillset, not an unimportant waystation.
When hiring a permanent CEO, however, the checklist becomes a little more nebulous. Each portfolio company’s needs will vary, but in general, PE ownership is looking for:
- Operating discipline
- Alignment on investment thesis and value creation priorities
- Problem-solving and innovative thinking
- Embrace of new ideas and technologies
2. Operations Leadership (VP of Operations, Operations Excellence Leadership)
While leadership teams often focus first on executive alignment and financial visibility following an acquisition, operational performance is usually where value creation is either realized or lost. In manufacturing, specialty chemicals, plastics, industrial processing, and other operationally intensive environments, the right operations leader can have an immediate impact on EBITDA, throughput, customer performance, labor efficiency, and overall organizational stability.
Strong operational leaders bring the ability to identify bottlenecks quickly, improve accountability, and create scalable systems that support growth. Beyond technical capability, successful operational leaders know how to lead through change. This shift (from founder-led environments to more structured, metrics-driven ones) requires leaders who can build trust with frontline teams while also implementing the accountability, reporting cadence, and operational rigor expected by investors and executive leadership.
The strongest candidates often combine hands-on operational experience with strategic leadership capabilities:
- Leading manufacturing transformations across growth or turnaround environments
- Building KPI-driven cultures with measurable accountability
- Developing frontline and mid-level leadership teams
- Driving cross-functional alignment
- Translating operational improvements into measurable financial outcomes
3. Commercial Leadership (VP Sales, Commercial Director, Business Development Leadership)
While operational improvements are often a major driver of value creation, growth-focused PE firms also recognize the importance of commercial leadership early in the investment lifecycle.
The right commercial leader helps bridge that gap by driving revenue growth while aligning commercial strategy with operational capabilities and long-term business objectives.
In manufacturing and industrial environments, commercial leadership should be prepared to be responsible for:
- Strategic account growth and customer retention
- Market expansion and diversification
- Pricing strategy and margin improvement
- New business development and pipeline creation
- Strengthening forecasting and sales accountability
- Aligning commercial commitments with operational capabilities
- Building scalable sales processes and KPIs
Successful commercial leaders in PE-backed environments tend to combine relationship-building skills with operational and financial acumen. Beyond driving top-line growth, they understand how customer mix, pricing discipline, and market strategy directly influence profitability and enterprise value.
4. Human Resources Leadership (CHRO, VP of HR or similar HR leadership)
PE-backed transformations often require upgrading large parts of the organization. A strategic HR leader helps recruit key talent, redesign incentives (often tied to equity), and manage cultural change, especially when moving from a founder-led to a PE-held portfolio company.
It’s easy to overlook the people function as a second-tier priority in the world of value creation and rapid change, but it can truly be a make-or-break area. Research from Deloitte found that 30% of failed M&A deals traced the root cause(s) of failure to cultural integration issues. Effective, thoughtful, and sensitive HR leadership can mitigate these issues – if it’s prioritized early on, rather than shifted to a later date.
Hiring effective post-acquisition HR leadership can go a long way towards building goodwill and ensuring a smoother transition. Look for leaders with experience in:
- Talent assessment
- Managing compensation and compliance
- Leading a culture of transparency
- Change management and problem-solving
Whether you’re seeking C-suite leadership to steer the ship or focusing on more detail-driven roles with specialized expertise, Kaizen HR partners with PE-backed manufacturers and growth-stage industrial organizations to build leadership teams that accelerate operational performance, scalability, and long-term value creation. Contact us to learn more about our turnkey recruiting solutions and how our personalized approach can identify the leaders you need to drive value creation – at any stage.
