Management Teams 101

The science behind hiring the best leaders for your portfolio companies

Happy Friday, founders and friends!

June has arrived and the roaring ’20s are here to stay 🚀.

In this week’s edition of The Weekly Bloom, we’re kicking off with a frequently discussed topic in private equity…..getting talent decisions right.

We all know that a company's management team can make or break a deal. No questions asked. But, hiring the right management team continues to be one of the toughest challenges that firms face during the acquisition process. 

In a recent Bain article “A Left-Brained Approach to Portfolio Company Talent Decisions” a deep dive is taken into the errors that plague firms when it comes to hiring management teams and the scientific approaches to properly hire the right leaders. 

“A rigorous, analytical approach makes talent decisions easier because it eliminates ambiguity about what’s required to win.”

You’re going to want to pour another cup of coffee for this unique outlook on leadership and hiring when it comes to your portfolio companies.👇👇 (14 min read)

💡 A Left-Brained Approach to Portfolio Company Talent Decisions 💡

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What We’re Reading and Listening To…

🎧 The Full Bloom Podcast, Episode 11 - Pulling the curtain back on Blooms playbook

📚 What M&A Will Look Like in a Post-Pandemic World

🎧 The Digital Collision Coming for Private Equity and Venture Capital Firms

📚 How to Acquire Your First Small(er) Company

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Favorites from the Ecosystem

Investors👇…..

Alex Mears @LeveredKnowledg

1/ Earnouts can be one of the most powerful tools you use as a Buyer to bridge value & align incentives But Sellers typically loathe them and poorly designed earnouts can destroy the Buyer-Seller relationship How do you effectively use earnouts in SMB acquisitions?

Founders👇……

Matt Shumer @mattshumer_

Validating a startup idea doesn’t have to take a ton of effort. Here are 10 tools you can use to build MVPs in days. /thread

Operators👇…..

Michael Girdley @girdley

Growth is SEXY! BUT... Reducing expenses is often the easier path to more profits. You can do this by choosing vendors well. I've run 500+ vendor selection processes over 20 years. I've learned a ton. Here are all of my tricks and techniques!

Marc Thomas @iammarcthomas

Most B2B SaaS companies want to create a demand generation flywheel. Here are the 20% strategies that will yield 80% of the results:

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Calling fellow investors!

If you’re an accredited investor and want to invest with Bloom, please apply here to be added to our investor list.

If you know someone that might be interested in selling their SaaS business, we have a scout program where you can earn a cash commission!

Specifically, we get excited about companies that check these boxes:
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 • saas generating $1mm to $10mm in annual recurring revenue
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 • low churn with large + loyal community or dominant brand
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 • a mature and proven product

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End Note

Thanks for joining us for another edition of the weekly bloom. At BloomVP we buy, build + invest in SaaS.

We’re excited to continue backing remarkable teams on their quest of changing the way we work, live + create.

As always, if you enjoyed this week’s newsletter we'd love it if you shared it with a friend, co-founder or anyone that would find value.