A mid-market PE house were targeting the acquisition of a technology based business. As part of the pre-deal due diligence, they required an in-depth assessment of the team who would be leading the business after the founders exited as part of the deal. Our review was planned to test both the current and future capability of the leadership team against the proposed investment thesis.
This review started with a market assessment using drxDATA to create insights around similar companies and their leadership team make-up. The competitive peer group of the targeted company was not immediately obvious and we worked hard to identify a pool of private equity backed organisations that were adjacent in terms of size and market domain but also at a similar stage of their growth journey. Having done so, we analysed the results of the peer group and considered them in relation to their respective organisational structures to identify what patterns in organisational design drove the highest performance. In particular we looked at those companies performing in the upper quartile and considered the functions, reporting lines and calibre of their teams.
Having done so, we were able to consider the organisational structure of the target company, provide critical analysis of their capability (in relation to the overall market place) and create roadmaps for development and succession planning to drive the company forward.