How governance evolves across the private company journey

EY brought together an esteemed panel with experience on a variety of private company boards to hear the latest perspectives on how boards can help create a foundation for sustainable growth in private companies and evolve to meet changing needs and expectations of owners and stakeholders at each step of the journey.

This webcast provided entrepreneurs, executives and board members with insights on topics including:

• The private company governance journey
• Hot topics for private company boards
• A framework for board effectiveness

Key takeaways

• Advisory boards and mentors can be helpful for founders who don’t need or want a formal board yet. It’s important to clearly set out what is expected of advisory board members and not create a formal board until not having one would hinder operations, raising capital, or navigating exit.
• Eventually, bringing independent directors with diverse perspectives and who have experience from founding to IPO can be a great asset.
• As companies mature, board members need to shift from mentorship to stewardship with related shifts in duties, decision-making orientation, and how time is spent.
• In the current inflationary environment and with the slow-down in capital markets, boards must focus on liquidity, margin, cash flow/preservation and talent. While founders have their heads down dealing with day-to-day operations, private company boards must help them take a step back and process issues that are going to matter down the line.
• Boards should also consider various scenarios related to financing and capital markets and if looking toward future listing, starting preparing and acting like a public company now.

The discussion was moderated by Kris Pederson, EY Americas Center for Board Matters Leader.

Panelists included:

• Beth Brooke, Board Director, The New York Times Company, eHealth Inc., Tricolor Group (private) and Beta Bionics (private)
• Rachel R. Gerring, EY Americas IPO Leader, Partner, Ernst & Young LLP
• Aaron Miller, Partner, Private Equity, Apollo Global Management, Inc.

What we heard from the audience