Berkshire Capital Case Review

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Berkshire is looking for winning business people with low egos. Berkshire had a very particular person in mind, and they pursued a specific type of person. Berkshire recruited heavily from the Harvard Business School, and from Bain and Company. Initially, Berkshire liked to promote people within their own ranks. But more recently Berkshire started to hire top managers and employees from outside sources. They did this to avoid become to “Berkshirized” and to gain outside perspective. Berkshire also asked its top investors to give their input on whom to hire. After all, the new employees would be handling the investor’s money. This is a unique process because few companies ask investors to help them hire personnel. Berkshire, unlike many of its competitors, assigned its investment staff to work with the portfolio company the entire time the money was invested. From the initial investment all the way to final sale, Berkshire kept the same team in charge of the investment. The idea was that this would reinforce sound investing decisions because the team in charge of the portfolio company would see how their investments through to the end. Other investment companies do not follow this model, and don’t allow their employees to follow their investments through each stage. Berkshire developed new departments that addressed activities that previously were handled by external sources such as Human Resources, general counsel, and portfolio support groups. Around the same time, a few other top level private equity firms were consolidating like Berkshire. As Berkshire grew, they began to hire people to become more specialized. They hired a Director of Talent Management so Brock-Wilson could focus on investing, they hired a General counsel to manage fund paperwork and legal documents, and they hired a director of capital markets and a portfolio support group. Of all the PESTL

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