Who are the OpCo CEOs in a HoldCo?

by a searcher

10 months ago

If you decide you want to build a HoldCo, who typically would run the business (i.e. act as CEO) of the Operating Companies?  You just keep the old CEOs in place?  You can't be the CEO of like 4-5 companies at once, right?

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searcher from Pace University

At Onfolio, we hire a separate operator/CEO for each acquisition under the holding company

10 months ago | like reply | 0 likes

searcher from INSEAD

Hold Cos have different models, and can be structured differently depending on how they were started. In many cases, CEOs are hired (i.e., can either be experienced CEOs hired externally who can run this sort of business, or can be more junior but ready to step into the CEO role but with lower compensation). In other cases, CEOs who sold may stay on for a certain period of time, potentially with an earn-out. Some holdcos will do a mix of both, depending on the need / interest in staying on from the seller. A few hold co models to review: Banyan, Tiny Capital, Constellation, Berkshire Hathaway, Enduring Ventures, Chenmark, and many others, but those give a starting point to see a variety of methods.

10 months ago | like reply | 0 likes

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