Investment Appraisal Advisory: Evaluating a leadership team’s capacity to execute the investment strategy
The Trusted Advisors Partnership is an advisory firm focused on improving the organisational performance and value in private equity portfolio companies. We support investors to identify and mitigate the capability risks that might constrain the delivery of ambitious investment strategies. Understanding the priorities and also the corrective or developmental actions that underpin capability and delivery is what we do best.
Working closely with investors pre-acquisition, we build a thorough understanding of their investment strategy, appetite for risk, and ambitions, but also their experience and how they might deploy it post-deal. We critically review the target / investee company’s leadership and management team through a similar lens and apply a suite of bespoke tests and benchmarks where applicable, and leverage our own extensive experience to deliver a comprehensive report with clear actions that do not solely mitigate risk, but actively build on the team’s potential. We know that alignment of expectations and aspirations, and mutual trust are key elements that underpin a successful deal.
The TAP Approach:
Build a thorough understanding of the investment case
Identify key areas of organisational capability to be tested against the value creation plan
Undertake organisational review of management team utilising bespoke tools and comprehensive interviews
Deliver detailed analysis of organisational capability and recommendations for actions and ongoing support to deliver to the investment plan
Follow through with development interventions for teams and individuals as required.
In our experience, despite occasional reticence from management who fear they are being interviewed for their roles pre-acquisition, the most successful investment outcomes have arisen from management teams who have embraced this process and leveraged the outcomes of our research to address gaps and areas of potential weakness in organisational capability. Establishing this level of trust instils organisational and investor confidence.
THE TEAM
Ben Williams
Toby Lapage-Norris