Hiring a Head of Tax for your private equity-backed business 

Private equity (PE) backed businesses require a robust tax strategy for maximising returns and managing risks. As your PE-backed business grows, you’ll need a dedicated Head of Tax. 

Here’s a guide on the importance of this role, the qualifications to look for and our recruitment process that helps you find the right candidate – first time. 

• The importance of a Head of Tax
• Qualifications to look for 
• The recruitment process 

The importance of a Head of Tax 

In a PE-backed business, Heads of Tax are responsible for developing and implementing tax strategies that align with the company’s financial goals and regulatory requirements.

Here’s why the role is important: 

1. Complex tax environment: the tax landscape is continually evolving, with new regulations and compliance requirements. A Head of Tax ensures your business stays ahead of these changes – minimising risks and avoiding costly penalties 

2. Strategic tax planning: effective tax planning can lead to significant savings and improved cash flow. A Head of Tax can identify opportunities for tax efficiencies, such as optimising transfer pricing and managing tax liabilities across different jurisdictions, and manage a sustainable ETR across the organisation 

3. Risk management: with PE-backed companies often taking on higher levels of debt, managing tax risks becomes even more critical. A Head of Tax can help mitigate these risks through robust governance and compliance frameworks 

4. Investor confidence: a well-managed tax strategy can enhance investor confidence. Investors in PE-backed businesses look for assurance that tax risks are being effectively managed and that the company is compliant with all relevant regulations 

5. Value creation: PE-backed businesses often pursue aggressive growth strategies, including mergers and acquisitions. A Head of Tax can provide valuable insights during due diligence, ensuring that tax implications are thoroughly considered and optimised 

6. Enhanced governance: as PE-backed companies grow, they need robust governance structures. A Head of Tax can establish and maintain strong tax governance frameworks, ensuring that all tax-related activities are conducted transparently and ethically 

7. Tax structuring: effective tax structuring is essential for PE-backed businesses to optimise their tax positions. A Head of Tax can design and implement tax structures that align with the company’s strategic goals, ensuring tax efficiency and compliance 

8. Professional services: engaging with professional services firms for tax advisory can provide additional expertise and support. A Head of Tax can manage these relationships to ensure the business receives the best possible advice and services 

9. Real estate and restructuring: PE-backed businesses often have significant investments in real estate and may undergo restructuring. A Head of Tax can navigate the complex tax implications of these activities, ensuring compliance and optimising tax outcomes 

10. Tax leaders: a Head of Tax is a key tax leader within the organisation, driving initiatives and setting the strategic direction for the tax function. Their leadership ensures that the tax team is aligned with the company’s broader business goals and is equipped to handle complex tax issues 

11. Venture capital: as your Head of Tax, experience in venture capital can be beneficial for business as it provides insights into the tax implications of early-stage investments and growth strategies. This knowledge can be particularly valuable for PE-backed businesses looking to invest in or acquire start-ups 

12. Private equity firms: a Head of Tax must understand the unique dynamics of private equity firms, including their investment strategies and exit plans. This knowledge helps develop tax strategies that align with the firm’s objectives and maximise returns 

13. Technological proficiency: your business will need to leverage technology to enhance tax compliance and efficiency. A Head of Tax can implement advanced software solutions for tax reporting, compliance and data analysis 

14. Mixed tax knowledge: your Head of Tax should have strong knowledge of global indirect tax regulations and sustainability practices. This includes VAT, GST and environmental tax regulations across different jurisdictions 

15. Treasury: sometimes your Head of Tax may need to oversee the organisation’s financial assets, liquidity and risk. This involves managing cash flow, ensuring financial stability, and optimising the use of financial resources 

Qualifications to look for 

When hiring a Head of Tax, it’s essential to look for candidates with the right mix of technical expertise, strategic thinking and leadership skills. Here are some qualifications to consider: 

1. Technical expertise: a deep understanding of corporate tax, international tax, and transfer pricing. Look for candidates with relevant qualifications such as ACA, ACCA or CTA. Familiarity with the latest tax software and tools can also be beneficial 

2. Experience in PE-backed companies: experience working in or with PE-backed businesses is highly valuable. These candidates will understand the unique challenges and opportunities in this environment. They should have a proven track record of managing tax issues specific to PE-backed companies, such as carried interest and acquisition structuring 

3. Strategic mindset: the ability to align tax strategies with broader business goals is essential. Candidates should demonstrate a track record of strategic tax planning and execution. They should be able to identify tax-saving opportunities and implement strategies that support the company’s growth objectives 

4. Leadership and communication skills: a Head of Tax must effectively communicate complex tax issues to non-tax professionals, including the CFO and other senior executives. Strong leadership skills are also necessary to manage and develop the tax team. Look for candidates who can lead cross-functional teams and collaborate effectively with other departments 

5. Experience with tax services: candidates with experience in providing tax services, either in-house or through professional services firms, can bring valuable insights and expertise to the role. This experience can help them navigate complex tax issues and provide strategic advice to the business 

6. Senior tax and advisory roles: candidates who have held senior tax positions or advisory roles in PE-backed companies or professional services firms can offer a wealth of experience and strategic insight. Their background in senior management can be particularly valuable in leading the tax function and driving initiatives 

7. Tax advisor experience: candidates who have worked as tax advisors can bring a unique perspective to the role. Their experience in advising clients on complex tax matters can be invaluable in developing and implementing effective tax strategies for your PE-backed business 

8. Senior manager experience: candidates who have served as senior managers in tax departments or advisory firms can provide strong leadership and strategic direction. Their experience in managing teams and projects will be crucial for the Head of Tax role 

The recruitment process 

Finding the right Head of Tax requires a thorough and strategic recruitment process. Our specialist tax recruitment consultants can help you:  

1. Define the role: we’ll help you clearly outline the responsibilities, qualifications, and expectations for the Head of Tax role. This will help attract the right candidates and set the stage for a successful recruitment process. You can include specific goals and metrics that the Head of Tax will be expected to achieve 

2. Leverage our services: partnering with a recruitment firm that specialises in tax and treasury roles can provide access to a broader pool of qualified candidates even if they’re not actively job seeking. We have the expertise to identify and attract top talent and can provide valuable insights into market trends and salary expectations 

3. Conduct comprehensive interviews: we’ll help you use a mix of technical and behavioural interview questions to assess candidates’ expertise and cultural fit. This includes involving key stakeholders in the interview process to ensure alignment with the company’s values and goals. You can include case studies or practical exercises to evaluate candidates’ problem-solving abilities and strategic thinking 

4. Evaluate cultural fit: beyond technical skills, it’s important to find a candidate who aligns with your company’s culture and values. This will ensure a smoother integration and long-term success. We’ll help you assess candidates’ adaptability, teamwork and leadership style to ensure they will thrive in your organisation 

5. Offer competitive compensation: to attract top talent, you’ll need offer a competitive compensation package that includes salary, bonuses and benefits. We can provide accurate salary benchmarking and relevant candidate insights  

Hiring a Head of Tax for your PE-backed business is a strategic move that can drive significant value. By understanding the importance of this role, identifying the right qualifications and following a structured recruitment process, you can find a candidate who will help navigate the complexities of the tax landscape and contribute to your company’s success. 

A well-chosen Head of Tax will manage compliance, mitigate risks and identify opportunities for tax savings while supporting the company’s growth objectives. Investing in the right talent for this critical role will pay dividends in the long run, ensuring your PE-backed business remains competitive and successful. 

Get in touch with us today to discuss your tax hiring needs.