Gary McGaghey is the group chief financial officer at William Lea Tag, Inc., a major U.S. pharmaceutical company. He is responsible for managing the company’s financial resources and ensuring that they are spent prudently and efficiently to achieve its goals. To do this, he analyzes the financial statements of William Lea Tag, Inc. and makes recommendations regarding how to improve performance. McGaghey has been with William Lea Tag for over 15 years, first as a financial analyst and then as a CFO. He started his career as an analyst with William Lea Tag’s predecessor organization, William Lea Tag. During his time at William Lea Tag, McGaghey has played an essential role in helping to develop the company’s strategic plans and taking advantage of opportunities to maximize shareholder value. Here we discuss some of the strategies for thriving in private equity companies.
1. Building a Reliable Base of Facts
Every private equity firm is different, and the strategies that work at one firm may not work at another. But the core strategies of private equity firms are similar enough that the process can be applied to any firm. To understand how private equity firms operate, knowing how they make their investment decisions is essential. Private equity firms typically look for companies with a solid financial position and a clear strategy for growth. They also want to invest in companies with good management and a healthy balance sheet.
2. Building Effective Teams
Private equity firms typically have a team of investment professionals who work together to decide which companies to buy and sell. The private equity firm’s advisors can generally draw on their experience and knowledge of the industry, as well as their relationships with other private equity firms, to make recommendations about which companies to buy and sell.
Private equity firms are, by definition, personal. They are not public companies and do not report their financial performance to anyone outside of themselves. As a result, there is no standard way of measuring their performance. Nonetheless, the strategies that private equity firms follow are similar enough that they can be applied to any firm.