Journal of
Corporate
Renewal
July/Aug
2017
continued on page 18
deal is completed, the team should
have developed a timetable and be
setting up an execution management
office to drive delivery and reporting.
Although these overarching
frameworks are well-known to PE
portfolio teams, what is more relevant
is that the teams pinpoint those
actions that can drive momentum
and impact in the first 30 days of
ownership. One of the most important
of those actions is quickly establishing
alignment between the investment
thesis of the PE investors and the value
creation plan owned by the portfolio
company’s management team.
Rapid Alignment Is Crucial
For obvious reasons, a project that
gets put down is often not picked
up again. So it’s crucial for there to
be alignment between PE investors
and the portfolio company’s
management from the very start,
with management taking ownership
for the delivery of the VCP and the
investor supporting the process
and monitoring implementation.
The benefits of such alignment are
evident in the recent acquisition of
a business carved out from a global
conglomerate, followed by an add-on acquisition. Although external
t Solutions
WE ARE
ur Clients’ Needs
*Securities offered through Carl Marks
Securities LLC, member of FINRA and SIPC
www.carlmarksadvisors.com
Investment Banking
M&A Advisory Services
Financial Restructuring
Advisory / Valuation
Debt & Equity Placement*
Distressed Transactions
Recapitalizations
ing
ment
ting
ship
ring
ning
sors
CMA-Ad-JCR-06-06-2017.indd 1 6/6/17 3:24PM
advisors were not part of the due
diligence phase, they were engaged
to support the reorganization of the
business and improve cash flows
post-closure. Quick execution
of this process stabilized the
business, enabling the advisors and
management to focus on the small
bolt-on acquisition through the due
diligence and integration process.
