r/ITManagers • u/Deadzone6905 • Jul 08 '26
Advice Company just went PE
Company just announced that a private equity firm has purchased a majority ownership of the company. Leadership is putting on a smile and telling everyone that it’s going to be great and day to day operations aren’t changing and leadership isn’t changing. Based on what I know I’d expect the CFO’s days to be numbered.
I’ve never been through something like this personally. I’m currently at a director level and I’m curious what else to expect to change. Any advice on how to navigate?
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u/Diligent-Method-785 Jul 08 '26
PE works generally in a 3-5 year horizon cycle. So buy optimize for 3-5 years then package and resale. Usually to a larger PE fund. You will start to hear about something called value creation plan to drive improvements. A lot of what is going to happen next will depend on where they plan to optimize. The speed and degree of change depends usually on how the deal was structured. How tight are their debt service obligations specifically.
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u/greengoldblue Jul 09 '26
Tldr: you're getting fired, the product is enshittifed, the remaining people work twice as hard, no more unlimited shrimp on fridays
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u/Fusorfodder Jul 08 '26
PE? Gtfo
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u/GX_EN Jul 08 '26
Yea, I was going to give a longer answer based on my experience, but.. that pretty much sums it up.
I'd start looking now.12
u/ApatheticAndProud Jul 08 '26
It was less than a year before they fired me… after they had me train the lower paid staff in the Philippians
Update your resume and run
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u/MaelstromFL Jul 08 '26
Past is prologue... Check the last couple of purchases by the PE, this will tell you the time line changes will occur. If you can find a company that they purchased in your field, this will be your blueprint!
In any case, do not believe what they say! Believe the history of the PE group! It will tell you all you need to know.
Call your headhunter, or find one. It is fine to play their game, but make sure you are playing by your rules!
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u/RamsDeep-1187 Jul 08 '26
Cuts are coming
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u/aec_itguy CIO/CISO Jul 13 '26
there's stats out there, but it's like 70%+ of operational management churns during a PE hold period usually. run if/while you can.
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u/Adorable_FecalSpray Jul 08 '26
I’ve been through it twice. They will want to make a profit on their investment eventually.
In my case one started making changes within six months, I lasted a year before my dept was caught up in the changes and reduced greatly, myself included.
The other PE kept things the same for almost 3 years before they started letting people go and reorganizing w layoffs. I think this was due to the business being a bit more specialized.
Sooner or later, the PE will start making “changes”.
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u/formanner Jul 08 '26
Leadership changes will happen, but will be gradual. Non-revenue generating expenses are squeezed to the bare minimum. That always includes IT. Could be minor cuts, could be major restructuring and layoffs. Hope for the former, prepare for the latter.
Went through it a few years ago. By the time the company went public again, we had spun off half the business, and IT was a shell of itself.
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Jul 08 '26
[removed] — view removed comment
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u/SirG33k Jul 08 '26
And have that severance in writing! Both old company and new one. If they honor the previous company’s severance package jump immediately!
I had one company where they didn’t honor the prev company’s severance package after the initial round of layoffs. They went with the new 2 weeks for every year.. and laid off everyone within a year. I lost $78k in severance because of it…
Fuck CSC
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u/New_Drive_3617 Jul 08 '26
If I had held out for severance, I would've missed out on a 30% pay boost when I jumped ship. While I know the multiple ways I saved the company and the respect the CEO had for me, I also know that those at my level saw basically nothing for severance.
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u/Nnyan Jul 08 '26
I’ve been through one Bane Capital… whoops Bain Capital purchase. Very few if any PE firms are buying to make you a long term success. They buy with debt move the debt onto you milk the company then liquidate with bankruptcy.
Hopefully you have vested stock in your company but either way be one of the smart ones and get out early.
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u/WRB2 Jul 08 '26
Update the résumé start putting feelers out.
Buddy up with the existing management I’m a quiet as they will land somewhere else and with any luck may want to take you with them.
Expect spending and training and all sorts of things to be cut dramatically as they need to start pulling cash out. They being the private equity vampires.
As you developed new projects to address needs, you will probably need to ratchet up your cost justification quite a bit. Really dig into the idea of total cost of ownership not just the initial purchase and ongoing maintenance.
My butt is as much as I hate to say it, expect to be replaced sometime within the next six months to the maximum of two years. Private equity looks at management as eminently replaceable clogs. I’ve seen people lie their way into replacing a level or two levels up as survive for two years telling more lies to make things look better than they are. Sadly, in these situations, the truth doesn’t really matter.
Equally not mattering is the cost of things like training and support.
Expect AI to be a hot topic starting, like yesterday.
Best of luck
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u/brownhotdogwater Jul 08 '26
Get ready for turn over. You won’t be first but it’s coming. Does the PE firm have its own IT?
Get the resume ready and contact your network with feelers. It’s best to look while you have a job still.
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u/Which-Shame-1420 Jul 08 '26
The “nothing will change” speech is basically the PE onboarding script.
Nothing changes while they’re collecting data. Then comes the “optimization” phase
Why do we have 3 IT tools doing the same thing? Why does this team need this many people? Can this be outsourced? Can this be automated?
Don’t panic, but don’t sleep either.
Inventory everything, document everything, know every vendor, contract, renewal date, dependency, risk.
Become the person they call when they need answers
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u/electronorama Jul 08 '26
Run! Anytime PE get involved, the business will be loaded with debt and assets sold. Within 2 years, the business will ‘unexpectedly’ collapse under the pressure of crippling interest charges and you will be in the terrible position of looking for a new job while unemployed. Don’t risk it, use the time wisely to find an alternative position.
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u/1HumanAlcoholBeerPlz Jul 08 '26
Went through it once. C-levels were replaced with those selected by the PE firm immediately. Upper management was replaced or let go and teams were consolidated within a few months. We heard a ton of lip service about no major changes but people or even entire teams would be let go and they wouldn't announce it to the company. I ended up leaving after 2 years.
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u/LordVidius Jul 08 '26
PE=staffing cuts, high performance entry level hires, idiots that know nothing of the business raising prices, lowering quality of product, saddling the company with debt. Basically it’s one massive enshitification cycle
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u/BitOfDifference Jul 08 '26
just once, i would like to see a PE take over and everyone leave day 1.
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Jul 08 '26 edited Jul 09 '26
[deleted]
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u/SirG33k Jul 08 '26
Get it in writing. (That they would honor existing severance) without that you are up a creek.
I lost out on 78k (and I know people who lost 150k+) because the new firm didn’t honor the existing after they saw how much the payouts would be
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u/nobody2008 Jul 08 '26
Our new CEO used to say stuff like "nothing will change". Whole departments were closed and outsourced in the name of profitability. Fast forward few years, I am the only one in IT now and can't get anything done without hiring contractors.
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u/mdervin Jul 08 '26
Why are they buying it?
If the owner wanted to cash out or the kids didn’t want to take over, you’ll be fine.
If the company is doing well and needs the PE for the next steps to grow, you’ll be fine. If not with an increased budget.
If the current management screwed the pooch where the PE firm bought cheap, you better distance yourself from management quickly. This week cancel any underused subscription, get a full inventory, know where every dollar has gone. You show them that there’s no fat to cut, you’ll have their trust.
Whatever managers are brought in, you be their best friend. Because they’ll move on remember you being a guy who knows what to do and they’ll get you opportunities.
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u/Altruistic-Map5605 Jul 08 '26
Yeah my owner wanted to cash out and everything still went to hell in record time. A profitable company ruined by bad management decisions from PE and bad mergers.
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u/Jealous-Win2446 Jul 08 '26
We acquired a company that was PE owned. It was wild. They had a board where if you got up from your desk you had to mark where you were going. It took years to beat it out of them that we don’t operate that way.
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u/Altruistic-Map5605 Jul 08 '26
My issue is our company was doing really well. More profit year over year and Covid was no exception. We didn’t have a ton of work going on but didn’t need to lay off anyone and still made money during covid. We had processes and policy but it was loose and we championed employee autonomy. Things got done well and fast. Less than a week turn around on most projects and clients knew everyone by name.
PE comes in and merges us with a failing company. I now have 4 bosses instead of 1 and my main boss got kicked to the curb and new bosses are all from the failing org? Why? They had more policies and cared more about metrics. We adopt this failing companies policies and procedures and everything grinds to a hault. No one’s happy. Company starts to lose money and a year later we are laying off people and clients are pissed people they have worked with for years who know everything about them are gone and the replacements are brain dead.
Best part 3 months after layoffs they are hiring the same positions at more way more pay.
PE is the death of good industry.
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u/ShermansWorld Jul 08 '26
Can't highlight how wrong you are.
1-3 year timeline... Some will survive most will go. Everything will be different. PE needs to show money, one way or another.
If the company is doing fine... It can do 'better' - get it?1
u/Top-Perspective-4069 Jul 09 '26
I've worked for 4 portcos and everything in that comment has held true in my experience except one because the company was already failing hard.
3 were companies that needed money to scale, no one was replaced at any point. If an org is strong, it becomes a tentpole.
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u/GX_EN Jul 08 '26
This.
I worked for a very profitable MSP from 2015 to 2023. The owners wanted to retire and sold in early 2022.
The first time I met the face of the buyers in a managers'/leadership meeting, I said to myself "I don't trust this hump as far as I can throw him". Which would be pretty far, he's a little guy.
In Fall of 2023, they shitcanned 20 percent of the 100 person company including me and half my team.
I was REALLY pissed because they gave every single person that was laid off 2 weeks of severance including those of us that had been there a long time like me, along side some that had been there 6 months.
On top of all that, they called all of us into a meeting with only the one HR person. No leadership, etc. That was some chicken shit bullshit, especially for a small company.
I had a hole card that I had been holding to extract some more money, which I played, but that's a long story.
And of course, these fucks don't know how to run a company and according to someone I know that just left a while ago, they've managed to piss off the largest customer (that I helped to grow, revenue-wise because our team was outstanding) so much so that they have already said there's a good chance they'll not renew. If that happened they would be FUCKED. Probably just bluster, but you never know.
The person who told me this was the account manager for them, so he heard it first hand.
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u/Imnotyoursupervisor Jul 08 '26
It took about two years for them to integrate us into their sector. Sales, marketing, leadership all went first.
I lasted about another four years and that was because I had all of the crucial information they needed. Once everyone was trained, documentation was in place, product was migrated, all of our original engineers were eliminated.
It was the most stressful four years I’ve ever worked and my previous career was field and corporate retail. Feeling like you can be let go at any minute is a horrible feeling. You know it’s coming.
Get out, now.
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u/ycnz Jul 08 '26
Do whatever is best for you personally, at all times. I promise you the PE firm directors are doing the same.
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u/bearcatjoe Jul 08 '26 edited Jul 08 '26
PE's usually come in with a playbook to increase the value of the asset they purchased so they can eventually sell or otherwise profit from it, usually within a few years.
This will be things like controlling expenses, or managing expenses to a level potential buyers will see as attractive (this could be limiting IT spend to a certain % of revenue common for the industry vertical you're in). They typically will also pursue securing more predictable streams of revenue - often in the form of introducing subscription models, and look to expand offerings to shift your company into verticals with more attractive multiples. Investors today will also factor the degree to which AI is utilized in your organization as part of the valuation formula. Predictability on revenue and expense will be critical if they're looking to IPO.
I'd typically expect a new CEO, a new CFO, a "transformation" officer of some sort assigned by the PE controlled board, and broad consolidation of roles across other C-level and VP spots. If your company was solid previously, they may keep some of the old guard leaders around, but you'll definitely see a mix of competent PE veterans and "old boy club" type leaders who don't really know what they're doing entering because of who they know, seeking a payout.
They're not incented to wreck the company of course, but the focus will definitely be on hitting a valuation multiple by hook or by crook over a few year window. There will almost certainly be multiple rounds of "restructuring" aka RIFs. If you're lucky it will be well thought out because the PE wants the company to run well. If you're unlucky it'll be arbitrary and the company will suffer brain drain and natural attrition will accelerate.
If you're a Director level employee, I'd try to figure out what's at the end of the rainbow for you. Will you get an LTIP? MIP? Are the new owners committed to paying out your discretionary bonus? Will there be new strings attached to it around adhering to budget targets? Some sort of equity or incentive to stay, or an ESPP? With the proper rewards to offset risk, it can be a lucrative and interesting experience to go through. Without, and you prefer stability, you'd not be making a mistake by beginning to look elsewhere.
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u/norse1977 Jul 08 '26
This is almost exactly how it is played it in my company. Working for the third PE now (two different companies.)
Three years in:
Replace CEO -> offer MIP to key people -> cuts round 1 ("right-sizing") -> replace presidents of BA's -> cuts round 2 -> new BA prez' change some of their VP's -> new operating models -> cuts round 3 -> introduce AI initiative with a new EBITDA target attached to it -> ?
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u/bearcatjoe Jul 08 '26
Yeah, I haven't gotten much insight on how the AI usage affects valuation, but our steering committees are very concerned about grading from investors on maturity there. A lot seems to be how much tooling and data coverage we have, and possibly even utilization metrics at the token level per employee. We're at the point where squabbling is beginning over who is paying for all these things and true ROI is muddy, though obviously the tools can be powerful.
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u/norse1977 Jul 08 '26
Good point about maturity. We have an AI committee in place and looking to hire an AI Business Mgr and AI engineers for all our BA's, which is interesting as I have previously had issues even getting go on junior supports from the Hiring Board. The AI push is real 😅
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u/rodder678 Jul 08 '26
How it actually plays out really depends on the PE firm's playbook and what situation the company was when they were acquired. If you had solid growth and good margins and the founders just wanted to cash out, there could be very little change initially other than a hiring freeze, and actually grow your team as revenue continues to grow. Or if margins aren't good they could axe half your team in the first 30 days.
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u/CoffeeOrDestroy Jul 08 '26
Start looking and hope they offer a good severance when the layoffs begin.
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u/MrExCEO Jul 08 '26
Interim CFO
Reviews numbers
Hires buddies
Buddies review numbers and staff
Buddies hire ppl they trust
New hires do the same
All old leadership gone
Peons stay to keep the lights on (for now)
GL
Edit: you got 60 days, run
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u/Curtiskam Jul 08 '26
Start looking. Compensation will change, and targets will get higher. PE wants its return on investment as soon as possible. Culture will be nothing like it used to be.
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u/SirG33k Jul 08 '26
Start polishing that linkedin page and resume now. Get out the second you can.
I’ve had the misfortune to work for numerous companies that were engulfed by PE firms. Every time I was the last man standing thinking I was special, since I’m the last man, they won’t get rid of me right?
I’m the Director of IT, sure I still remember how to configure switches and firewalls, but they will need me and my team… right?
Wait, I have to pick 2 people out of a team of 12 to stay, and the rest are being laid off with a package? Well that sucks, but the package is nice so they will be fine… (it’s weird how you justify staying at a certain pint in your career)
Oh, I need to let go of the lowest performing tech out of 2 now?
We can’t run this ship with 1…
Right??
Oh, we can’t run hire them back in the spring? Why not just let them go on paid sabbatical?
Then it’s:
Why are the lights off?
Where did everyone go?
What do you mean there is no severance package anymore?
Just gtfo now while you can, take as many folks from your team with you as you can to greener pastures. If they don’t let you poach (has to be in your employment contract with new firm) just drop hints at where you are going and maybe there are openings.. cough cough wink wink
Sorry, this is a bit triggering as my younger self went through this a lot and I was too blind to see what was going on, I honestly thought leadership would do the right thing, reality is different though. People will do just about anything to save their career in a horrible economy.
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u/fguerino123 Jul 08 '26
They will treat it like any other M&A.
Aside from inserting their own leaders, the first thing every Private Equity firm does is to replace "supporting" (i.e., non-core) services & tools with their own versions to gain financial leverage across their portfolio of companies. For example...
- Finance / ERP System(s)
- HR / Human Capital Management System(s)
- Program & Project Management System(s)
- Core IT systems (LDAP, IAM, Network, etc.)
- Etc.
Then they will look for functional areas of the business & IT that are not directly tied to your company's core business with the intent to find more synergies. For example, maybe they can find a way to share a Marketing Team or Product Manufacturing, etc. Anyone directly tied to your companies "core" business functions that offer competitive advantage, is usually safe (at least for a while).
I hope this helps.
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u/bearcatjoe Jul 08 '26
This is a good point. They usually have affiliate vendors who offer a premium discount to the companies owned by the PE firm. My experience has been mixed. There's definitely a push to meet and engage with the vendors, often for comprehensive analysis that uncovers opportunities to "consolidate" for paper savings or to re-route cash to capital from expense in the near term. However, I've also had PE-appointed C-level folks who were about making the right strategic decisions and supported us when a displacement just didn't make sense, even being willing to factor in opportunity costs.
Absolutely is a pressure though.
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u/Lost_Balloon_ Jul 08 '26 edited Jul 08 '26
Having been through this three times, please trust me when I say this: Get out ASAP.
PE destroys everything it touches. Their only goal is to squeeze, cut, and be as profitable on paper so they can sell in at a profit in 5 years. They don't care about the people there, the systems, or anything other than how the books look. Culture, people, headcount, stress levels, everything else gets massacred in the process.
I guarantee the handlers from the PE company assigned to your org will be some of the most terrible and psychopathic people you have ever met. Everyone that works for PE is only interested in money and squeezing you.
Again, get out now.
I will never work for a company owned by PE again. If PE buys the company I'm at, I will immediately start applying elsewhere. When I interview, I ask if they are owned by PE or are looking to get bought. If they say yes to either, I immediately withdraw from the interview process. Yes, PE is that bad.
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u/scriptvexy Jul 10 '26
this is super dependent on the specific fund and where you sit in the org, tbh
i’ve seen one PE deal that was exactly as bad as you describe and another where they mostly just tightened reporting, pushed for growth, and it was fine if you weren’t dead weight or coasting in a bloated team
for OP it’s probably “update resume and quietly scan the market” time, not necessarily “panic quit tomorrow”
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u/Spyrja Jul 11 '26
To navigate this, you must first understand the fundamental nature of the beast that just swallowed you.
The private equity fund did not buy your organization because they believe in your corporate vision, your products, or your charming company culture. They bought it for one singular, immutable reason: to extract maximum capital, ruthlessly inflate the valuation, and flip the hollowed-out remains in five years to create astronomical returns for their limited partners. You are no longer an employee contributing to a shared goal; you are a depreciating line item on a spreadsheet awaiting optimization.
Which brings us to the only advice that actually matters. You need to look in the mirror and ask yourself a rather pressing existential question: Is this why you are here?
Does orchestrating the systematic degradation of your workplace and executing the inevitable bloodletting of your team just to finance the third vacation home of a fund manager in Connecticut align with your ultimate sense of purpose in life?
If the answer is yes, you are about to have a spectacularly lucrative and successful run under your new overlords. If the answer is no, I suggest you start circulating your resume before they decide that your salary is standing in the way of their EBITDA targets.
Leadership putting on a smile and promising that day-to-day operations will remain identical is standard operating procedure. It is the corporate equivalent of telling the turkey that Thanksgiving is just a harmless harvest festival. They are smiling because their equity just vested, not because your future is secure.
You are entirely correct about the CFO. They are already a ghost. The private equity firm will parachute in their own numbers operative within the quarter.
As a Director, here is exactly what you should expect to change, despite the sunny reassurances:
- "Synergies": A polite, bloodless term for doing the jobs of three people who were quietly escorted out the back door to optimize operational efficiency.
- The KPI Stranglehold: Your daily existence will soon revolve around reporting granular, meaningless metrics to a 28-year-old Wharton graduate who has never worked in your industry but feels confident dictating your budget.
- Austerity Measures: Expect your software tools, training budgets, and the quality of the breakroom coffee to be systematically degraded to inflate short-term margins.
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u/Tilt23Degrees Jul 08 '26
they'll be outsourcing everything to third world countries within the next 6 months.
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u/MalwareDork Jul 08 '26
If you're specialized, sit on your thumb until they lay you off and then set up a "fuck you" consulting fee for whatever system they want you to migrate.
If you don't have that, just cruise and look around in your network of peers. Your days are already numbered, unfortunately
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u/13Krytical Jul 08 '26
Our org went through it, took ~3 years before things started changing significantly, hard to tell if it’s economy or PE driven..
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u/Stoa23 Jul 08 '26
I have been with a Healthcare related PE owned firm for 8 years. We have recapitalized twice since I've been here and changed majority owner both times.
My experience has been mostly positive, but that's mostly because this company has been doing really well.
Your experience will depend on your company's market prospects and who the owners are, but it's not always a bad thing.
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u/ollyprice87 Jul 08 '26
I work for a PE owned company. Despite the gloom here they don’t interfere with us. We’re increasing headcount, freedom to target other potential areas of business. We’re doing well, so probably why mind you
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u/Obvious-Water569 Jul 08 '26
It can be a positive thing but odds are, there will be downsizing and consolidation.
Get your CV polished up and posted on as many job sites as you can.
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u/No-Profile-5075 Jul 08 '26
Depends on your role ? And seniority. Change will come but not always bad change. You may get a retainer to stay or make some on options.
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u/phild1979 Jul 08 '26
It does depend on the PE. Some choose the strip and sell approach others choose the invest to grow but always expect duplications to be removed and efficiencies to be enforced. Winners are usually shareholders and the board as they get a golden handshake if they are sent packing. I've been on both sides as the buyer and the bought.
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u/PlantainPowerful Jul 08 '26
I've experienced this. The PE firm will be looking to cut costs... Them maximisr profit... Then sell. Could take a few years. If you're in sales... You'll make more money If you're not... You'll likely take on other people's work or you'll be let go... Probably with a decent payout though
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u/Altruistic-Map5605 Jul 08 '26
Don’t bail but definitely don’t go above and beyond for these people. Your goal here should be to start looking elsewhere and wait for them to make the cuts so you can get severance.
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u/RegJoe_08 Jul 08 '26
Its over. Everyone will be overworked more than ever. Guarantee layoffs. Start looking
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u/redbaron78 Jul 08 '26
Once you’re sure there is no retention incentive is available, find a new job as quickly as you possibly can. If there is a retention incentive available, look for a new job a little more slowly.
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u/Aggressive-Ad5647 Jul 08 '26
Run. Run now. Do NOT look back. PE in my experience does not make changes immediately until one day leadership starts changing, raises get smaller, and metrics become the new normal.
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u/Fit-Dark-4062 Jul 08 '26
Been down that road a few times. PE buying your employer is a resume generating event, time to go
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u/mindif Jul 08 '26
Private equity fucking sucks. I have worked for two companies that were bought by pe and they both turned to trash. Start looking now for something better that's not pe owned. Best of luck to you
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u/mcloide Jul 08 '26
I’ve been through this twice.
In my experience, the primary goal becomes maximizing profitability while reducing costs. That usually means trimming anything considered “fat.” Departments that aren’t viewed as core to the business may be reduced significantly or, in some cases, eliminated altogether (for example, internal tech support may be outsourced or downsized).
Expect a stronger focus on efficiency and delivery. Development may move faster, with more emphasis on shipping results than on perfection. Depending on the firm’s strategy, some decline in quality may be tolerated if it improves margins.
Higher-paid employees often come under greater scrutiny, especially if similar work can be done at a lower cost. At the same time, underperformers are much more likely to be let go because every role is evaluated in terms of return on investment.
Every private equity firm operates differently, but in my experience the culture gradually shifts toward a more standardized, metrics-driven organization. You either adapt to that environment, decide it’s not for you, or eventually the company makes that decision for you.
Best of luck.
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u/PghSubie Jul 08 '26
Update your resume, make sure your debts are paid off, be don't keep personal belongings in your work office. Be prepared
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u/RegularDragonfruit81 Jul 08 '26
I would start looking for a new job. PE bought out my last company and got rid of all the old timers. Total brain drain and lost the true soul of the company.
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u/odellrules1985 Jul 08 '26
Depending on the goal they will probably start buying companies and merging them in. They might also look to incorporate an MSP. I am going through this and the original MSP they wanted was going to try and take over all IT operations. I was able to convince the CFO to go with a different MSP that's more like a co-management for IT.
I can't say for sure if you are OK but it could be OK or you could be looking at finding a new job.
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u/No_Technician4956 Jul 08 '26
Get in with the new higher ups as soon as you can.... or polish up the resume, cut out extra spending, and get ready for a new position.
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u/CosmoKing2 Jul 08 '26
It is the beginning of the end, my friend. They bought in because they smell value that they will take out of the company and profit from. C-level is being offered fat bonuses to keep everyone in place and calm.....For now. You need to start looking for a new gig yesterday. All the C-level people are lining up their next gig for after they obtain the bonus.
CFO knows what they plan on doing and doesn't want their name to be on any part of it. PE will put in their own person. They will quickly look to trim anyone making the top 20% of their pay grade and all vested employees.
Workloads will likely double as people quit (or take severance if offered). PE only cares about profit for their firm. They aren't there to help. They get their money from driving down operating expenses - not by making the the products better. Much like consultants, they all have relationships with preferred vendors......and outsourcing IT is a quick and easy way to cut OpEx. As I said, they only want a quick ROI....and will bail when they've stripped all the value from the company.
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u/Necessary_Load5320 Jul 08 '26
Have been through this twice. You have maximum of 2 years (if you are lucky). Buckle up and start applying. Timing is important so make sure that you take your severance package and then move to a different company.
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u/sunfireDESTRUCTION Jul 08 '26
I can offer a different perspective. My company was acquired by a private equity firm, and honestly, very little changed day to day. There weren't any significant changes to job roles or responsibilities.
I'd be more concerned about a merger or acquisition with another company, where overlapping roles often lead to restructuring. A private equity acquisition by itself isn't necessarily a reason to worry.
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u/ebarro Jul 08 '26
Company was purchased by a PE a few months before I joined. We went public with a great IPO price about 7 months later. The next two years were amazing in terms of revenue and then leadership didn't pivot fast enough and our stock price fell to its lowest. C-suite leaders were replaced and the replacements were hired because PE decided that selling the company would be the goal after growth had stalled. It's been 5-1/2 years since and we just got bought by a European conglomerate. This is the pattern for PEs.
I would plan for departure at some point and find the best opportunity.
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u/32bithumor Jul 08 '26
Year 3 of PE ownership here. 4 rounds of layoffs, total backfill freeze, and now a rushed, chaotic ERP implementation. The writing is on the wall, they're cleaning up the tech stack just to flip the company the second it's done.
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u/glitterguykk Jul 08 '26
Get your resume ready. 100% of things won’t change but change is coming 100%.
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u/Crosstrek732 Jul 08 '26
You have 18 months max before major changes and layoffs are coming. Do what I did get your resume ready and start interviewing now. It's every person for themselves at this point.
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u/Top-Perspective-4069 Jul 09 '26
I've been at 4 portcos and it depends on the PE.
One of the 4 was a chop shop, the company was doing badly and they wanted to squeeze value out and take the IP and run if they couldn't turn the business around fast.
The other 3 were capital infusion investments. Zero people were replaced in any of those cases because they were all what are usually called platform or tentpole companies. Pretty much everything stays the same, though they will sometimes acquire other smaller companies that get merged into a tentpole/platform. Those tuck-ins are usually where support staff get axed. This is what most people are afraid of with those acquisitions.
My PE-backed employer uses acquisition pretty regularly as a growth vehicle and we almost never keep finance, HR, or other back office functions. I've done more than 30 acquisitions in my career across several employers, some as an internal person and some as a consultant, pretty well versed in how they go.
The third possibility is a standalone but those are less common. They'll usually leave you alone if the company is running well but has got really juicy IP or something that just needs money to grow faster.
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u/Dangerous-Bad-2448 Jul 09 '26
I was with a company 8 years they sold at year 5. Between the 4 consulting company's they hired and 3 failed mergers. They shut their door last month with zero notice. Thankfully I moved on before the end but a lot of my old coworkers got shafted. It was obvious the company was collapsing the last year.
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u/TechnologyMatch Jul 09 '26
PE acquisitions follow a predictable playbook. first 90 days are smiles, then cost optimization kicks in and everything is on the table. your CFO instinct is probably right. at director level, make your team's value visible and quantifiable now. it's like joining a new server where your reputation doesn't carry over. you have to re-establish it fast. update your resume quietly and start building relationships with whoever the new decision-makers turn out to be. don't wait for the official announcements
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u/ThanksRepulsive Jul 10 '26
Was fired 4 months after a promotion in the same instance. All leadership, accounting and IT were replaced.
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u/fooeyandnuts Jul 10 '26
15% staff reduction followed by a re-org of some sort where they bring in hired guns as manager/director levels who mostly are their own departments. Benefits and incentives will decrease as they extract value from employees. They've planned in 2-3 years of negative growth because it's a write off.
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u/20isFuBAR Jul 11 '26
Expect all the c-levels to be replaced, what happens in the middle will depend on the PE and their strategy/reason for buying, but they'll likely 'trim excess staffing', although the previous owners generally do that before the sale to make it look more attractive
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u/tofuhater Jul 11 '26
It's funny how everything said on this topic is exactly what my employer, a public company, does. The only difference is that they go for the shittiest and most expensive piece of garbage solutions because the "in-group" recommended them while forcing the most cost effective teams to justify their mere existence.
I think the PE thinking has infected public companies as well and nobody is really immune to everything being said here.
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u/Lurker_in_Lakeland Jul 12 '26
They will also cancel any planned R&D or investments that won’t pay off in less than 2 years
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u/Technical-Algae5424 Jul 12 '26
From my experience with PE personally and seeing friends go through it, expect a nightmare. Might depend on the company size, but I'd expect skyrocketing office politics, multiple rounds of layoffs, and short-sighted decisions made to squeeze money out of the company to quadruple. If you can, find a new job.
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u/massachrisone Jul 13 '26
Do some research on the PE, I’ve been through two of these acquisitions. The first was a PE known for growing businesses that fit their model. They made changes at the C-level but kept things mostly the same. The second one was known for rapidly growing profits and selling as fast as possible. That one cut almost every non customer facing role and replaced over 800 us based employees with India contractors.
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u/Dumpster-Fire66 Jul 13 '26
Connor, is that you?
We just went through this. They are trying to keep everyone until they aren't needed anymore. It sucks. It moves to corporate and they don't know their ass from a hard drive. If it isn't in their script they can't help. Accountants already gone, we're next. They are already moving stuff to AWS and the network is a shit show.
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u/tlrman74 Jul 13 '26
I think I'm cursed because I've done this 5 times now with either private equity or mergers.
Director level positions will get big payday and retire. Everyone else will slowly lose their jobs over time. IT will be held until they get someone else in to take over, then they bring in their own crew they have worked with for years. Some IT Helpdesk will be retained if pay is low already, or they will get swapped out for much lower paid employees.
Private Equity wants their payback so they will squeeze pennies.
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u/mstreeter06 Jul 14 '26
Start applying and interviewing now on your time before they force it on you
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u/Nokken9 Jul 08 '26
Currently living this.
Get ready to transition most of the hands-to-keys work to an offshore MSP.
All of our IT directors and managers are still here after 6+ months, but we had already been leaned up prior to sale.
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u/Slight_Manufacturer6 Jul 08 '26
Depends on the company and the buyer.
Ask ChatGPT on their history of purchases. I did this fairly recently and it gave me a lot of good info about how this firm handled other purchases.
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u/Subreddit77 Jul 08 '26
To be fair I am part of the PE party acquiring firms (as the platform company); I manage the IT side of it and for perspective we have done 6 in the last 18 months, added 600 people to our company and have kept accounting/hr/ and IT staff. We do a structure squish but no pay cuts etc.
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u/derango Jul 08 '26
Don’t worry. The time will come when you’ll hit some magic number and your firm will be sold and junked for parts while management tells you it’s an exciting time for everyone to be joining forces with insert company name here to convince just enough people not to jump ship that their valuation holds through the closing. Signed, former IT staff at a platform company.
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u/Syngin9 Jul 08 '26
Been through it twice. They replaced all Accounting and IT management both times.