This book is a guide for private equity and strategic investors into the assessment of management teams in their portfolio businesses. Whilst senior management teams play a central role in creating, and potentially destroying value, investors are often ill-equipped to assess management capability with the same rigor and depth as other areas of the business. This book builds on the idea that rather than assess management, investors actually need to assess management risk. Readers are guided through a practical four stage framework for identifying, mapping and addressing the various leadership-related factors which influence business success. Drawing on a wealth of practical experience and recent research, the book enable investors to: Identify key management risks; Plan and conduct assessments of senior management teams, individually and as teams; Manage the process so as to strengthen the relationship between investor and investee; Integrate data on the senior team with other dimensions of the business to build a rich picture.
Book Details:
- Author: David Cooper
- ISBN: 9780470032640
- Year Published: 2009
- Pages: 252
- BISAC: BUS027000, BUSINESS & ECONOMICS/Finance
About the Book and Topic:
This book is a guide for private equity and strategic investors into the assessment of management teams in their portfolio businesses. Whilst senior management teams play a central role in creating, and potentially destroying value, investors are often ill-equipped to assess management capability with the same rigor and depth as other areas of the business. This book builds on the idea that rather than assess management, investors actually need to assess management risk. Readers are guided through a practical four stage framework for identifying, mapping and addressing the various leadership-related factors which influence business success. Drawing on a wealth of practical experience and recent research, the book enable investors to: Identify key management risks; Plan and conduct assessments of senior management teams, individually and as teams; Manage the process so as to strengthen the relationship between investor and investee; Integrate data on the senior team with other dimensions of the business to build a rich picture.
It is widely recognized that management is often the major contributor to value creation and destruction in private equity backed deals. It is management who ultimately delivers the business strategy and produces the financial performance which will lead to a successful exit. However, the effort and attention dedicated to assessing management during due diligence is often very low in proportion to the significant impact they can have on results. Despite growing interest in management due diligence over the last few years, many private equity investors still rely on gut feeling when it comes to evaluating the senior team, and it is widely acknowledged that management is not assessed with the same depth and rigor as the financial and commercial dimensions of a prospective investment. One problem here is that the skills required to assess people are very different from the skills needed to evaluate a business. Another problem is that it is hard to integrate the kind of qualitative analysis used to evaluate management teams with the kind of quantitative financial analysis which dominates as the basis for financial decision making.
· TOPICAL in the wake of a number of high profile blow-ups, assessing management capability in a company is now just as important in assessing other areas of the business. This will be the first book to show investors just how this can be achieved in a quantifiable manner. · PRACTICAL ADVICE equips readers with a range of tools to carry out management assessments, enabling them to make the right investment decision. · AUTHOR EXPERTISE the author has years of experience in due diligence and assessment, and works with some of the worlds largest private equity groups in management assessments.
About the Author
David Cooper (London, UK) is founding partner of EGC Partnership, creating the Cooper Limon management due diligence framework. David has extensive firsthand experience having held positions at the Cranfield School of Management, London Business School, University of Zurich and the University of St Gall. His particular areas of interest are board dynamics, complexity, uncertainty, and the less measurable aspects of governance that cannot be regulated but affect performance. He is a Fellow of the Institute of Chartered Accountants in England and Wales, an Associate Fellow of the British Psychological Society, and a Principal Founder Member of the Association of Business Psychologists.