Former GE CEO Jack Welch is now, among other things, a special partner at private equity firm Clayton, Dubilier, & Rice. As you might imagine, however, news that the no-apologies, no-excuses Welch is going to be doing a look-see on an investee’s business sets hearts a-flutter — and not out of love:
Welch advises [Clayton Dubilier CEO] Gogel, helps screen potential investments, and runs the operating reviews of companies in which Clayton has invested. How do some of the young MBA types running these companies react when they learn that Jack Welch will be their reviewer?
“Sheer terror,” says Gogel.