What an ETONIEN Interim COO Does

Operational excellence drives modern private equity returns. Interim COOs enter portfolio companies to strengthen supply chain performance, optimize processes, and deliver measurable efficiency gains aligned to sponsor objectives.

Typical mandates include:

• Leading manufacturing, procurement, logistics, or service operations.
  
• Implementing process discipline, KPI dashboards, and value-stream mapping.
  
• Rationalizing footprint post-integration and optimizing working capital.
  
• Leading operational readiness for scale or exit.

Why It Matters to Private Equity

Operational improvement now accounts for nearly half of all PE value creation, eclipsing financial engineering.⁷ Sponsors increasingly deploy interim COOs to deliver near-term results within tight hold periods.

Industry insights:

• 47 % of PE value creation since 2010 has come from operational initiatives, compared to 18 % in the 1980s.⁷
  
• COOs in PE-backed companies are expected to be “relentlessly execution-driven,” not purely managerial.⁸
  
• When operations falter, investor confidence and valuation follow—making rapid, experienced intervention critical.

Common Scenarios for Interim CFO Engagements

Bolt-on integration — Consolidating multiple plants or logistics networks.

Margin compression — Reversing cost creep through productivity and procurement programs.

Scaling growth — Building process architecture to sustain triple-digit revenue growth.

Exit preparation — Demonstrating operational sustainability and scalability to buyers.

FAQs

Q: When should a portfolio company engage an interim COO?

A: When growth or integration is outpacing internal systems, or when operational underperformance threatens deal targets.

Q: What are the first priorities in these engagements?

A: Establishing operational dashboards, identifying quick wins, and stabilizing leadership accountability.

Q: How should a COO align with the CFO and CHRO?

A: The COO owns execution; the CFO ensures financial precision; the CHRO aligns workforce capability. Together they deliver enterprise-wide performance.

Q: What is a typical engagement length?

A: Six to eighteen months, depending on whether the assignment focuses on turnaround, integration, or scaling.

Footnotes

1. Odgers Interim, “Why So Many CFOs Fail in Private Equity in Their First 18 Months.”
2. ZRG Partners, “CFO Playbook for Portfolio Companies.”
3. PwC, Private Equity Operating Partner Trend Report.
4. The People Space, “CHROs Linked to Big Wins in Private Equity Exits.”
5. TCG Consulting Group, “The Rising Importance of Human Capital in Private Equity.”
6. Spencer Stuart, “Is Your Next Role CHRO for a Private Equity Portfolio Company?”
7. PwC, Private Equity Operating Partner Trend Report.
8. Human Capital Strategies, “Embracing the Private Equity Mindset After Public Company Leadership.”