Interim executive

What this seat actually does

Interim executives run a function, or the whole acquired company, for a defined period. The most common use is filling the hole left when a selling owner departs and it becomes apparent how much of the business ran through that one person: the customer relationships, the pricing judgment, the supplier goodwill, the knowledge that was never written down.

A seller’s three month transition period rarely transfers twenty years of tacit knowledge, and an experienced interim can buy you the time to hire properly rather than hiring in a panic.

When you need one

Where diligence has shown heavy owner dependence, or where a key executive is expected to leave at or shortly after closing.

How they charge

Day rate or fixed monthly fee for a defined term. Cheaper than a bad permanent hire, and considerably cheaper than a leadership vacuum in a business you have just paid for.

What to ask before you hire

• Have you done this in a business this size, immediately post acquisition?
• What will you have handed over, and to whom, by the end of the term?
• How do you build credibility with a team that has just lost its owner?

How to compare candidates

• Ask for the handover plan up front. An interim without an exit plan becomes an expensive permanent hire by default.
• Steadiness matters more than brilliance in this seat.

The mistake owners make

Waiting until the gap is visibly hurting the business. By then the customers have noticed too.

What this is not

Not the permanent hire, and not an integration lead, though one person occasionally does both.

The Institute accepts no payment from any advisor, takes no fee tied to any transaction, and does not place or refer professionals for compensation. This entry describes a role, not a recommendation of any firm.