CIO retention under private equity ownership

There's often a discrepancy between a Chief Information Officer’s (CIO) vision for IT transformation and the private equity (PE) firm's investment strategy and time horizon. In the PE world, where returns are paramount, the clock can tick faster and there can be significant pressure to drive quick and tangible results. Sometimes, existing CIOs might lack the necessary experience or vision needed to meet the company's new direction and timelines, leading to a misalignment with the newly formed company’s goals. Additionally, incumbent CIOs can find themselves unfairly shouldering the blame for pre-existing IT issues.

Addressing this turnover isn’t just about keeping the CIO with the company, it’s about aligning their vision and direction with the PE firm’s goals, providing adequate resources for digital initiatives, and ensuring transparent communication.

The whitepaper below is part of a series focused on how IT can increase deal value and minimize business risks during a transaction. The series highlights principles that KPMG in Canada’s Technology M&A team leverage to help maximize value and minimize risks for clients across industries. In this article, we will discuss the impact of CIO turnover in deals, benefits of retaining technology leadership, and strategies to mitigate against turnover