DUE DILIGENCE

People consider carefully before investing in or inviting investors into their businesses. For investors, the imperative is to deliver the desired financial return for the funds made available. For the business owner/entrepreneur seeking investment, the imperative is to secure the funds to enable the next stage of the dream and make it happen! Both the investor and the company seeking investment want to realise the potential that they both see! We have the privilege of working with some superb investors for whom values, as well as obvious value, is core.

Building mutual trust is key. We understand from the investors what they are seeking to achieve and understand their ambitions and any areas for exploration that they may have regarding the Senior Leadership Team in the business of interest. We then meet with the SLT who each undertake our proprietary psychometric assessment. This allows us to understand their successes, ambition, motivations, strengths, potential Achilles, concerns, and culture. Once the assessments are complete, we recommend the most effective way of moving forward, if the investment goes ahead. This includes communication between the two businesses and how the potential Achilles could be made into significant opportunities to complement the obvious strengths.

Recognising the cultural differences between investors and businesses seeking investment is crucial. We work hard with both parties to facilitate the earliest possible mutual understanding so they can both release the collective power of their own individual capability. Once this early work is done, we often (but not always) work alongside the ‘invested in’ business for the first 12-18 months. This helps them develop as a Board (often a new Board) and implement some of the changes that they need to make as part of the investment agreement and plan for exit.

PROCESS:

PHASE 1

Briefing from the investors
Meet the SLT and undertake the psychometric assessment
Debrief the CEO/MD of the private business
Debrief the investors

PHASE 2

Work with the newly ‘invested in’ business to support the evolution needed to meet the demands of the investors, the market, and their own exit plan, where appropriate