Governance model for self-funded deals - Board or no Board?

by a searcher from The University of North Carolina at Chapel Hill - Kenan-Flagler Business School

2 years ago

A question to successful self-funded searchers and investors in deals where the searcher owns the majority of the common equity of the acquired company and controls the entity.  Do self-funded deals usually establish a Board of Directors? if so, how is it designed?   What are the best practices for governance for these types of deals?  Thank you.

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searcher from Northwestern University - Kellogg School of Management

To reiterate the previous comments. Even if lenders don't require a Board and you have voting control of the entity. Then consider what do you personally and the organization need on this front. As Shlok mentioned, this can depend on the goals/intended outcomes for the business and where you are at on your professional development. Advisory Boards can take a lot of forms and be geared for different goals including decision making, informal coaching, referral/connections and generally bring some added expertise to your extended team. So think about what your situations needs.

Suspect different people will have differing points of view, but I ultimately appreciate the discipline of having a Board (however you define it) along with some of the basic operating rhythm it typically entails.

3 days ago | like reply | 0 likes

searcher from Pepperdine University - Graziadio School of Business and Management

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2 years ago | like reply | 0 likes

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