For a Private Equity Board Seat, Start With the Deal

When Main Capital Partners outlined its proposed acquisition of Watermark Insights on September 16, it also described the work ahead: expansion in North America, entry into Europe and further acquisitions.

Watermark sells software that helps universities manage accreditation, faculty development and student outcomes. According to Main, it serves approximately 1,500 institutions and employs more than 300 people. Expansion would require experience with both the software and the universities buying it.

For an executive seeking a private equity board seat, that plan suggests where to look for a connection to their own record. Experience taking institutional software into another country or integrating acquired products could be relevant. A career spent in technology, on its own, says much less about the fit.

Niobrara Capital's acquisition of MSP Corp, announced the same day, presents a different set of operating questions. The Canadian managed IT services provider would deepen its presence at home while pursuing growth in the United States. Niobrara cited MSP's acquisition record and customer retention as strengths. Financial terms were not disclosed.

Expanding that service business means bringing acquired teams together while preserving the customer relationships that support recurring revenue. An executive who has managed those tradeoffs has something specific to discuss with an owner. Someone whose experience lies mainly in software product development would need to explain where it transfers.

Neither announcement advertises a board vacancy, and Main's Watermark acquisition remains a proposed transaction. The announcements give candidates a basis for research, with the composition of each board and the owner's need for outside advice still to establish.

What happened after closing

An executive who has led several acquisitions should be able to explain what happened after closing: which systems were combined, whether customers stayed and where expected savings failed to materialize. In a board biography or an introduction to an investor, those results give substance to a claim of deal experience.

The assignment needs equal scrutiny. An advisory engagement might address a market-entry decision or a particular acquisition; a board appointment requires an ongoing contribution to the company's wider decisions. Before pursuing either, a candidate needs to establish the authority, time commitment and expectations involved.

For a business built on customer retention, a director who has seen service deteriorate during an integration may spot a weakness in a savings forecast. That is the kind of experience a deal count leaves out.