Middle Market Executive: Key Takeaways

From PE’s interest in staffing businesses to emerging models for teams of operating partners, here are a few of the highlights from this edition of Middle Market Executive. Read these stories and more in the archive.

HELP WANTED

Companies’ demand for workers in industries like healthcare and IT went into overdrive during the pandemic, and analysts say staffing demand is likely to continue for the foreseeable future. Staffing companies that have the systems in place to screen and hire nurses or skilled knowledge workers are well-positioned to take advantage of this need. Meanwhile, private equity investment in staffing and recruiting companies is also on the rise.

CUT IT OUT

Dealogic reported that 9,155 corporate carve-out transactions worth $2.3 trillion were announced globally last year, thanks in part to an expanding economy, rising company valuations and eager private equity buyers looking to make up for lost time. But today’s slowing economy and volatile stock market have the potential to keep the carve-out party going, as corporations focus on their core businesses and look to shore up their balance sheets.

K-P-IS THIS WORKING?

Just because a company underdelivered against its key performance indicators doesn’t necessarily mean there’s a problem, according to panelists at ACG’s Operators’ Summit. Depending on the company’s growth stage, it may fall short of some KPIs while hitting the target for others and ultimately course-correct down the line. Either way, leaders can extract valuable insight, which could mean revising the plan for how to reach a company’s goals.

BETTING ON QUBIT

Former U.S. Secretary of Commerce and current investor Penny Pritzker points to quantum computing and its commercial applications in manufacturing and technology as among the innovations she’s most excited about for their disruptive potential. Also on the list: sustainability applications for technology, cloud migration and innovative software solutions.

PRACTICAL MAGIC

Asked how leaders should identify where outsourcing can make the biggest impact, a panelist at ACG’s Operators’ Summit pointed to the “magic number”—year-over-year revenue growth divided by the money spent on sales and marketing. Whether it can supplement business development or “top of funnel” work on the way to the sale, an outsourced service that advances that magic number is one to prioritize.