A private equity firm was considering acquiring a heating oil distributor but was uncertain if its management team could handle expansion plans. An evaluation assessed the team and found they had untapped potential. Consultants advised changes needed to effectively manage growth. Individual development recommendations were also provided. Armed with this, the private equity firm completed the acquisition, and the company has since successfully integrated its first acquisition and pursues a second.

1. Outcome
Intervention
Situation
Can This Team Grow The Business?
Situation
A major Canadian Private Equity firm was considering the purchase of a large residential and commer-
cial heating oil distributor. The plan was to enlarge operations through a number of acquisitions. The PE
firm knew the management team was doing a good job of running the company at its current size, but
didn’t know if it could handle the expansion. The PE firm asked RHR International to evaluate the capa-
bilities of the target management leadership, make recommendations on how they could improve as indi-
viduals and a team, and identify organizational issues which might affect future profitability.
Intervention
• After a through study of the target company, RHR interviewed PE firm members to determine their
goals for the property.
• A comprehensive picture of each executive’s leadership style was developed through interviews
and tests.
• The RHR consultants also evaluated team dynamics and determined the organization’s culture.
Outcome
• The RHR consultants’ report confirmed the team was strong and held untapped potential that
would allow it to successfully handle the additional responsibility of the acquisitions.
• The consultants advised the team how they would have to change their working style to deal with
the growth and geographic distances of the expanded company.
• RHR advised each individual on the team about their own professional development.
• Based on the recommendations of the RHR consultant team, the PE firm went through with their
investment. To date, the portfolio company has successfully worked through its first major acquisi-
tion and is currently working on a second that will see its business double again in size and extend
its range into Alberta and B.C.
LEADERSHIP FOR PERFORMANCE