Services of Interest to Private Equity Firms, Part 3

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February 14, 2013

Services of Interest to Private Equity Firms, Pt. 3: Strategy

Evaluation of Competitive Position – Strategic Position and Action Evaluation

  • Financial strength
  • Industry strength
  • Environmental stability
  • Competitive advantage
  • Strategic alternatives based on evaluation (e.g., conservative, aggressive, defensive, competitive as well as the strategies available to each alternative)

Affirming Strategic Direction, Strategies, Tactics (Operational)

  • Mission/Purpose revisit/confirmation
  • Review of strategic position and suggested actions
  • Discussion of future positioning/visioning
  • Development of key strategic drivers of action/fundamental strategies
  • Development of goals and tasks to support strategies
  • Financial modeling including post-sale Year 1-5 operations, income, expense, cash flow, capital requirements, replacement reserves, etc.
  • Development of critical business targets
  • Post-sale performance reviews

Divestiture and Exit Strategies

We work closely with owners, accounting, and legal counsel to create effective plans for unwinding a relationship with emphasis on being part of the team that creates strategy at purchase.

  • Financial modeling for the exit
  • Compensation and pay-out issues and valuation
  • Business planning issues
  • Leadership succession planning

 New Organization Assimilation

Bringing in new owners into an existing business can be a great blessing, or it can be challenging, frustrating, and disenabling to the company. In some cases, a private equity firm as a new majority owner can end up in opposition with the company through poorly orchestrated transition or communications, or for any other reason that just arises between humans.

We can assist in these delicate, but vital conversations by being the third party facilitator to get the issues on the table so that all parties can focus on productive work. Call us to discuss how we can help bring parties to understanding and greater clarity, and visit our section on facilitation for more information.