Founder & CEO Diligence  ·  For investors, family offices and boards

Is your CEO the right one for what comes next?

Before you appoint, extend or back a leader, get an answer from someone with nothing riding on it. Six weeks. One fixed fee, agreed in writing before work begins.

Two ways in

Already invested, or about to be.

The method is the same either way. What changes is the clock.

Most engagements

You’re already invested, and the company is at a turning point.

A founder who may not be the one to take it further. A CEO whose results have stalled. A sale ahead that changes the job. A board split on who should lead. A new CEO building the team around them.

Before you commit

You’re about to back a founder or CEO.

An investment that rests on one person, or a team that arrives with the asset. The same method on your deal calendar, with findings sent as they land.

The problem

Most people around the decision have a reason to get to yes.

Nobody here is acting in bad faith. Each party is doing its job. None of those jobs is to tell you whether this is the right leader for what comes next.

Search firmsPaid when the seat is filled
ReferencesOften chosen by the candidate
BankersPaid when the deal closes
ManagementWants to keep its seats
DirectorsOften backed the leader to begin with
0

Five voices in the room, and none of them is paid to tell you whether this is the right leader. Consensus is not confirmation.

What’s at stake

The wrong leader is expensive, and it shows up late.

Fortune 500 boards can hire a major consulting firm to pressure-test a decision like this. Many mid-market investors, family offices and boards rely on people with a stake in it.

65%

of PE firms report replacing a portfolio company CEO during the hold

83%

of PE executives say unplanned CEO turnover lengthens the hold

~33%

of first-year pay: a commonly used fee for a retained CEO search

One fixed fee, agreed in writing before work begins.

Often a fraction of what a search costs, and it can start before one.

Sources: AlixPartners PE Leadership Survey, 2026 (n=427); search fee norms.

How it works

Six weeks, three steps, one answer.

The criteria are set with you before anyone is scored, so the answer cannot be reverse-engineered.

Week 1
Week 2
Week 3
Week 4
Week 5
Week 6
Read the business, agree the criteriaTest the peopleRecommendation
01

Read the business

Board decks, management reports and the data room. Where does the company need to be in 12 to 18 months?

02

Define the seat

Weighted criteria for what the job requires, agreed with the board before anyone is scored.

03

Test the people

Structured interviews, references we source, and company records, with the candidate’s notice and consent. Only decisions a candidate owned count as evidence.

Not a search, a personality test or a background check. Weekly check-ins with the board chair. The incumbent can be a candidate.

Count the roots, not the voices  ·  A sample engagement

Eleven references can boil down to five sources.

A voice is who told you. A root is where their view came from. Four voices growing off one root are one source, not four confirmations.

Here is what that looks like in a sample engagement: a board weighing an internal candidate who arrived with eleven glowing references. When we traced each reference back to where it came from, this is what we found.

Sample
Sample: internal candidate  ·  11 references

One reference that came through the candidate’s side

One reference we found ourselves

The founder, plus five people he introduced1 source
Current direct reports, who share one view1 source
References we found ourselves, each independent3 sources

11 references → 5 separate sources

Six of the eleven glowing accounts traced back to one person: the founder sponsoring this candidate.

Counted honestly, the candidate who sounded strongest had the thinnest evidence. That changed the recommendation.

A representative sample. The company and candidates are fictional.

What you receive  ·  From the same sample

A recommendation, and the evidence behind it.

If the answer is yes, you back your leader with evidence, not hope. The recommendation is ours. The decision is yours.

The dark panel is the summary from the sample engagement above. The other boxes show everything else the board receives.

Sample
Sample recommendation

Candidate B

Why. Leads the two most heavily weighted criteria, on decisions the candidate owned.

Risk to manage. Culture transition: a 90-day founder handoff and a plan to retain the internal candidate.

Scores against the agreed criteria, with how firm each one is
The case for and against every candidate
What the chosen leader needs around them
A counsel file, written on the expectation that counsel, or a court, may read it

Where privilege matters, we can be engaged through your counsel. We don’t give legal advice. Public companies are scoped separately and run eight to ten weeks.

Independence, in writing

You direct the framing. You don’t direct the findings.

Independence is only worth something if it costs something. These are terms in every engagement letter.

01

No equity, debt or economic interest in any company we evaluate, and none taken afterward.

02

No further work discussed with anyone until findings are delivered.

03

Framing and emphasis are yours to direct. What the evidence says is not.

The full set of commitments, including our standing exclusion list, is provided in writing before scope. We turn down search, requests to confirm a decision already made, and diligence that cannot change the decision.

How to start

Call before the decision is made, not after.

Six weeks fits inside a typical close or board cycle. Wait longer, and the decision gets made by default.

01A thirty-minute call, in confidence
02A one-page scope and fixed fee within a week
03Six weeks to a recommendation

Start a conversation →

Want to try the first step yourself? The free Source Map counts the separate sources behind your view of a leader, and the one-page tests are free with our newsletter.