The First 100 Days: Operational Priorities After Acquisition

The closing of a private equity investment marks a pivotal milestone and the beginning of a critical window. According to a study by PitchBook, almost 90 percent of PE firms formulate 100-day plans when they acquire a business. The first 100 days set the tone for the entire holding period, establishing relationships with new investors, demonstrating operational capability, and building momentum toward value creation goals. Management teams that execute effectively during this period position their companies for success; those that stumble often spend years recovering lost ground.

Portfolio companies face a fundamentally different operating environment after acquisition. New stakeholder expectations, enhanced reporting requirements, and performance targets tied to investment thesis assumptions all demand immediate attention. The first order of business is ensuring the company can report financial information at the level and frequency the sponsor requires. This means aligning reporting frameworks, establishing key performance indicators that match strategic objectives, and addressing any data quality issues that would undermine visibility into performance.

Operational assessment represents another early priority. Pre-close due diligence identifies areas for improvement, but the first 100 days provide opportunity to validate findings and prioritize initiatives. Management teams should perform thorough evaluations of people, processes, and technology to identify gaps in existing capabilities. The best 100-day plans are specific, measurable, and limited to four or five priority initiatives that can feasibly be completed in a three to four month period. Talent assessment surfaces as a recurring theme, with sponsors looking for gaps where leadership needs to be added or upgraded.

Quick wins matter during this period, both for building sponsor confidence and for establishing momentum within the organization. Making immediate changes to poor business processes identified during due diligence allows management teams and PE firms to collaborate toward tangible results. These early successes demonstrate capability, build trust, and create energy for the larger transformation work ahead. However, quick wins must be selected carefully: initiatives that deliver visible results without disrupting core operations or distracting from strategic priorities.

The most effective 100-day plans recognize that success requires alignment across multiple stakeholders. Everyone from board members to line employees should understand the plan and their role within it. Clear communication, defined accountability, and regular progress reviews keep execution on track. For management teams navigating their first PE-backed environment, structured support during the first 100 days can make a meaningful difference in outcomes.