New report identifies how private equity and portfolio companies can ensure board meetings add value

Alantra has supported a new report from Board Intelligence, a specialist consultancy which works with businesses to achieve effective board reporting, which analyses the role and importance of board meetings in private equity portfolio companies. Using data gathered from over 100 investment professionals, portfolio company management teams and experienced non-executives, Board Intelligence discovered there is a significant disconnect between what is expected from board meetings and what they achieve. The research also revealed widespread concerns about the quality of reporting for private equity-backed board. 

Commenting on the research, Andy Currie, Managing Partner, Alantra, said “This is a hugely important area for companies and investors. In our experience as advisors, the single most important aspect to a well-functioning board is the relationship between the CEO and the non-executive chairman – if this is not strong then you will face an uphill battle to obtaining a cohesive board. Private equity’s key value add is to keep the management team focused on the end prize, how are we making this business more valuable, which is not necessarily the same as more profitable. Too many board meetings focus on past performance; that is gone, and the agenda should be at least 75% focused on the future, having learnt the lessons of the past. Further, we would like to see more boards with more than one non-executive, and a recognition that the right chairman on day one might not be the right chairman towards the end of the investment period.”

A copy of the report, “The role and value of board meetings in private equity-backed businesses”, can be downloaded from Board Intelligence’s website here.