United States

Private Company Governance - The Call for Sharper Focus

Feb 10, 2016
From the Global Enterprise Institute


The governance models of private companies are in constant need of fine-tuning. Is the organization obtaining sufficient insight regarding its full range of risks and opportunities? Are owners and management teams sharing the right information with the right set of advisors and board members? Is the governance in place today optimal for the vision and objectives of the company and its owners? 

In a recent KPMG / Forbes Insights survey of 154 private company directors, we explore the issues and challenges related to governance models of private companies. The resulting report highlights key findings:

  • The top three governance challenges cited by private company directors include improving risk management oversightassessing innovation and emerging competition, and confirming/establishing company strategy.

  • The most visible challenges to board effectiveness include budget/resource constraintsconflicts of interest (including the presence of related party transactions) and a compromised board due to an overrepresentation of controlling shareholders.

  • Private company directors are looking to their governance processes and controls to improve M&A outcomesenhance financial risk oversight and optimize the finance organization through performance evaluation and succession planning.

Get these insights and more from the full research report on Private Company Governance. 

Learn more about how KPMG partners with private companies

You know KPMG, but you might not know KPMG’s Private Markets Group (PMG). We’re dedicated to working with businesses like yours. Whether you’re an entrepreneur, family business, or a fast-growing company, we understand what is important to you. By providing industry perspectives and proactive guidance, our PMG professionals help private companies achieve their strategic objectives throughout each stage of the business life cycle. Through our global network of professionals, we offer integrated audit, tax and advisory services to meet the needs of growing private companies.

Contact our PMG professionals for more information:

Brian Hughes
National Private Markets Group Leader
T: 267-256-1820
E: bfhughes@kpmg.com

Sal Melilli
National Audit Industry Leader
Private Markets Group
T: 212-872-6030
E: smelilli@kpmg.com