This document provides an overview of the findings from a survey of over 100 private equity practitioners regarding human capital issues. Some key findings include:
- Respondents believe that poor company performance is often attributable to management issues. However, respondents were divided on whether management changes are made quickly and effectively post-deal.
- The main difficulties in assessing management teams pre-acquisition are limited time with management and the unreliability of references in gauging future performance.
- When evaluating potential portfolio companies, respondents focus on current/past performance and finding a collectively strong team, rather than individual star performers or professional networks.
- Post-deal, management is closely monitored through performance targets and incentives to ensure alignment,
Eversheds Report - Streamlining for success: M&A Divestment and Separation Tr...Rafal Wasyluk
Sieć Eversheds opublikowała globalny raport pt. „Streamlining for success: M&A Divestment and Separation Trends". Raport koncentruje się na trendach w zakresie wyjść z inwestycji. Za koordynację polskich prac nad raportem odpowiedzialna była Ewa Szlachetka, partner kierujący praktyką fuzji i przejęć w kancelarii Wierzbowski Eversheds.
Na potrzeby raportu przeprowadzone zostało globalne badanie, również wśród klientów Eversheds. Jego celem było uzyskanie odpowiedzi m.in. na poniższe pytania:
Jakie aspekty separacji lub dezinwestycji oraz ogólnego procesu planowania są największym wyzwaniem?
Jakie są przykłady najlepszych praktyk i rozwiązań w zakresie radzenia sobie z tymi wyzwaniami?
Gdzie poszukiwać obszarów, w których można uzyskać wzrost wartości oraz gdzie można najwięcej stracić w procesie separacji?
Które kwestie prawne są krytyczne dla sukcesu transakcji?
Kiedy prawnicy wewnętrzni będą najbardziej skuteczni w swojej roli?
Jakie są najważniejsze zagadnienia dotyczące różnych grup interesariuszy, w tym zarządu, dyrektorów, zespołu zajmującego się rozwojem korporacyjnym i doradców prawnych?
W jaki sposób w trakcie zbycia chronić wartości zarówno w spółce dominującej, jak i zależnej?
Więcej (ENG): http://www.eversheds.com/global/en/what/services/m-and-a/report-2015.page
Meeting the challenges of international expansionElric Legloire
The document discusses the challenges that companies face when expanding internationally, including regulatory compliance, tax structure, and finding and managing talent in foreign countries. It reports the results of a survey of CFOs where the majority identified legal/HR/tax issues as significant barriers. While companies are seeking to expand abroad, setting up foreign operations presents difficulties in staffing, compliance, and supporting growth. For these reasons, the document recommends that companies partner with a global Professional Employer Organization that can help navigate local laws and regulations to more smoothly establish international operations.
Businesses report that access to capital is highest in nearly two years. The Pepperdine Private Capital Access (PCA) and Private Capital Demand (PCD) Index measures the demand for, activity and health of the privately-held businesses on a quarterly basis. A value of less than fifty for an index represents a low level of access or demand, while a value greater than fifty can be interpreted as relatively high capital access or demand. The research was conducted under the auspices of the Pepperdine Private Capital Markets Project, in partnership with Dun & Bradstreet Credibility Corp. Visit: http://bschool.pepperdine.edu/accesscapital
Brown Advisory believes recent academic research validates their approach to active equity management. Studies show only managers with high active share (divergent portfolios from benchmarks) and moderate tracking error consistently outperformed. Brown Advisory portfolios have high active share and low tracking error, concentrating on 30-80 carefully selected stocks across sectors. Their research-driven process aims to add value through independent thinking rather than closely tracking indexes.
This document discusses the viability of using data analytics in human resources. It begins by providing background on how the role of human resources has evolved from a clerical, administrative function to a more strategic business partner. It then discusses some potential barriers to implementing effective HR analytics, including a lack of understanding of data and analytics, insufficient statistical skills within HR, and issues with data sourcing and quality. The document concludes by providing examples of how analytics have been successfully applied to recruitment and selection processes and employee retention efforts.
Third quarter survey results revealed that private capital access decreased for less than one percent (0.3%)
comparing to the access three months ago. Private capital demand decreased for six percent (6.2%) since Q2.
Fifty percent (50%) of respondents report the current business environment is restricting their growth opportunities
for business and forty-two percent (42%) of respondents report the current business environment is restricting
their ability to hire new employees. Twenty-nine percent (29%) of business owners said they transferred personal
assets to their business over the last three months. Forty-four percent (44%) of respondents have financing
coming from outside sources.
Ibm smarter workforce Unlock the people equation using workforce analytics to...Pauline Mura
Enabling the workforce to drive the business
IBM Talent and Change services and Smarter Workforce
solutions combine market-leading talent management
and social collaboration tools with the power of workforce
science and advanced analytics. They enable
organizations to attract, engage and grow topperforming
talent, create an engaging social and
collaborative culture, and connect the right people to get
work done. We help organizations build an impassioned
and engaged workforce and deeper client relationships
leading to measurable business outcomes.
Eversheds Report - Streamlining for success: M&A Divestment and Separation Tr...Rafal Wasyluk
Sieć Eversheds opublikowała globalny raport pt. „Streamlining for success: M&A Divestment and Separation Trends". Raport koncentruje się na trendach w zakresie wyjść z inwestycji. Za koordynację polskich prac nad raportem odpowiedzialna była Ewa Szlachetka, partner kierujący praktyką fuzji i przejęć w kancelarii Wierzbowski Eversheds.
Na potrzeby raportu przeprowadzone zostało globalne badanie, również wśród klientów Eversheds. Jego celem było uzyskanie odpowiedzi m.in. na poniższe pytania:
Jakie aspekty separacji lub dezinwestycji oraz ogólnego procesu planowania są największym wyzwaniem?
Jakie są przykłady najlepszych praktyk i rozwiązań w zakresie radzenia sobie z tymi wyzwaniami?
Gdzie poszukiwać obszarów, w których można uzyskać wzrost wartości oraz gdzie można najwięcej stracić w procesie separacji?
Które kwestie prawne są krytyczne dla sukcesu transakcji?
Kiedy prawnicy wewnętrzni będą najbardziej skuteczni w swojej roli?
Jakie są najważniejsze zagadnienia dotyczące różnych grup interesariuszy, w tym zarządu, dyrektorów, zespołu zajmującego się rozwojem korporacyjnym i doradców prawnych?
W jaki sposób w trakcie zbycia chronić wartości zarówno w spółce dominującej, jak i zależnej?
Więcej (ENG): http://www.eversheds.com/global/en/what/services/m-and-a/report-2015.page
Meeting the challenges of international expansionElric Legloire
The document discusses the challenges that companies face when expanding internationally, including regulatory compliance, tax structure, and finding and managing talent in foreign countries. It reports the results of a survey of CFOs where the majority identified legal/HR/tax issues as significant barriers. While companies are seeking to expand abroad, setting up foreign operations presents difficulties in staffing, compliance, and supporting growth. For these reasons, the document recommends that companies partner with a global Professional Employer Organization that can help navigate local laws and regulations to more smoothly establish international operations.
Businesses report that access to capital is highest in nearly two years. The Pepperdine Private Capital Access (PCA) and Private Capital Demand (PCD) Index measures the demand for, activity and health of the privately-held businesses on a quarterly basis. A value of less than fifty for an index represents a low level of access or demand, while a value greater than fifty can be interpreted as relatively high capital access or demand. The research was conducted under the auspices of the Pepperdine Private Capital Markets Project, in partnership with Dun & Bradstreet Credibility Corp. Visit: http://bschool.pepperdine.edu/accesscapital
Brown Advisory believes recent academic research validates their approach to active equity management. Studies show only managers with high active share (divergent portfolios from benchmarks) and moderate tracking error consistently outperformed. Brown Advisory portfolios have high active share and low tracking error, concentrating on 30-80 carefully selected stocks across sectors. Their research-driven process aims to add value through independent thinking rather than closely tracking indexes.
This document discusses the viability of using data analytics in human resources. It begins by providing background on how the role of human resources has evolved from a clerical, administrative function to a more strategic business partner. It then discusses some potential barriers to implementing effective HR analytics, including a lack of understanding of data and analytics, insufficient statistical skills within HR, and issues with data sourcing and quality. The document concludes by providing examples of how analytics have been successfully applied to recruitment and selection processes and employee retention efforts.
Third quarter survey results revealed that private capital access decreased for less than one percent (0.3%)
comparing to the access three months ago. Private capital demand decreased for six percent (6.2%) since Q2.
Fifty percent (50%) of respondents report the current business environment is restricting their growth opportunities
for business and forty-two percent (42%) of respondents report the current business environment is restricting
their ability to hire new employees. Twenty-nine percent (29%) of business owners said they transferred personal
assets to their business over the last three months. Forty-four percent (44%) of respondents have financing
coming from outside sources.
Ibm smarter workforce Unlock the people equation using workforce analytics to...Pauline Mura
Enabling the workforce to drive the business
IBM Talent and Change services and Smarter Workforce
solutions combine market-leading talent management
and social collaboration tools with the power of workforce
science and advanced analytics. They enable
organizations to attract, engage and grow topperforming
talent, create an engaging social and
collaborative culture, and connect the right people to get
work done. We help organizations build an impassioned
and engaged workforce and deeper client relationships
leading to measurable business outcomes.
The Importance of Total Cost of Ownership: How Midsized Companies Can Find Co...Adrian Boucek
One of the most important metrics that organizations need to think about is the total cost of their workforce. Referred to as Total Cost of Ownership (TCO), this measure enables an
organization to obtain a realistic picture of what they are actually spending on their employees and the management of them.
Portfolio Company Board Seat Survey Resultsmensa25
The National Venture Capital Association and Dow Jones VentureOne released the results of a study on differing practices and attitudes of venture capital-backed company boards. The study was based on surveys of over 700 venture capitalists and CEOs and revealed that while VCs and CEOs think about the same issues, their perspectives often differ. Some of the top issues of concern identified were exit strategies, financing rounds, management transitions, and conflicts between fiduciary responsibilities and financial obligations. The study provided insights into board activities, time spent, areas of agreement and disagreement between VCs and CEOs, and the perceived value that VCs provide to company boards.
This document provides an executive summary of a survey conducted by RMA and PwC on the transition from Libor discounting of derivatives to non-Libor discounting. The survey included responses from 43 financial institutions globally. Key findings include that most institutions report being partially through or still working on the transition, with collateralized transactions addressed before non-collateralized ones due to fewer standardized approaches. Challenges involved methodological issues, data/systems capabilities, and operational complexities. The transition has increased costs and resource demands for institutions.
Bus 475 capstone final examination part 2 new 2016alicalland
1) The document provides a summary of the BUS 475 CAPSTONE FINAL EXAMINATION PART 2 from 2016, including sample questions and multiple choice answers.
2) It discusses accounting topics like adjustments, financial statements, inventory, and internal controls.
3) The summary is intended to help students prepare for and study from past examples of the BUS 475 capstone exam.
Today's crowded and ever-growing private equity market means that buyout multiples continue to rise, making the deployment of capital a persistent challenge.
Read the study to find out how successful organisations are able to convert high-level Analytical strategies into actions that truly deliver business value.
Make the right choices to create a winning strategy by Kenneth MikkelsenKenneth Mikkelsen
What makes good corporate strategy? Kenneth Mikkelsen interviews Roger Martin, Dean of Rotman School of Management about his book Playing to Win: How Strategy Really Works.
The document discusses the future of workforce analytics, arguing that as companies rely more on contingent labor, they will need more sophisticated analytics to strategically manage their workforces. While most companies recognize the value of analytics, many only use basic transaction data that does not provide deep insights. The document advocates integrating internal transaction data with external market data to better understand workforce dynamics and make informed strategic decisions. It provides examples of how baseball analytics has evolved to optimize team performance and argues that a similar approach could benefit workforce management.
CULTURAL DUE DILIGENCE AS COMPETITIVE ADVANTAGE IN CROSS-BORDER MERGERS AND A...Iulian Warter
This document discusses the importance of cultural due diligence in cross-border mergers and acquisitions. It notes that managing cultural differences is crucial for M&A success but is often overlooked. Cultural due diligence helps identify cultural factors that could impact integration and develop strategies to prevent conflicts. The document reviews how cultural clashes have undermined mergers and acquisitions in the past. It argues cultural due diligence is needed to understand risks and opportunities from differing national and corporate cultures during M&As.
This document discusses the importance of strategic thinking for leaders and organizations. It finds that only 23% of US executives are strong strategic thinkers, and that poor strategy was the #1 cause of bankruptcy in nearly 50% of cases studied. It then discusses three disciplines of strategic thinking: 1) generating insights, 2) focusing resources through tradeoffs, and 3) executing strategy to achieve goals. Only about 30% of managers exhibit high levels of strategic thinking. The document argues regular practice of these three disciplines can help develop strategic thinking skills.
The document discusses three trends influencing competitive intelligence (CI) abilities: organizational acculturation where all employees contribute to intelligence efforts, corporate governance with board-level priority on reliable earnings forecasts, and disruptive innovation in predicting competitive battles. It also discusses CI processes like collecting information from primary and secondary sources, analyzing data versus just collecting facts, and using tools like SWOT analysis, growth vector analysis, and disruptive innovation theory. The document advocates for an equilibrium approach to CI that can be both decisive in making recommendations and incisive in interpreting emerging trends.
Post-Merger Integration as an Instrument for Improving M&A EfficiencyPaulOstling
This document discusses post-merger integration as a way to improve the efficiency of mergers and acquisitions. It defines different types of mergers and acquisitions and notes that about 1/3 of M&A deals outright fail and another 1/3 miss economic goals. Critical factors for success include careful strategic analysis, planning for integration, managing stakeholders, and establishing metrics to measure success. Effective post-merger integration requires combining companies in reality, not just on paper, and is akin to change management. Key elements of a smart integration plan include addressing culture, people, customers, systems and communicating extensively. Common mistakes include not addressing resistance to change, lacking M&A expertise, and failing to reward integration teams.
Deloitte Global Business Driven Hrt Financial Servicestscarborough7
This Deloitte report outlines key human capital challenges facing today\'s HR executives in financial services, and how building a more strategic HR partnership with broader business strategies can help overcome these challenges.
Companies, mergers and investments don't fail because of lousy products - it's culture and behaviour that determine distinction! Make your company, merger or investment stand out sustainably by focussing on what really matters: the people and their behaviour!
State of Internal Audit Profession - 2015 - PWCErik Lundberg
The document summarizes the key findings of PwC's 2015 survey on the state of the internal audit profession. It finds that external factors like regulations, competition, and changing customer behaviors are driving significant and rapid transformation across many industries. Companies are undergoing major changes to their business models and operations to respond to these challenges and opportunities. This level of disruption and transformation is taking place in uncharted territory and significantly altering companies' risk landscapes. The survey suggests internal audit functions will need to evolve to maintain their relevance by focusing on emerging risks, developing new skills, and closely aligning with the business in this shifting environment.
This document provides a comparative assessment of the stock valuation of Intel Corporation and Texas Instruments. It uses both absolute and relative valuation models, including discounted dividend, free cash flow, residual income, and market multiples models. The analysis finds that while Intel derives around 50% of its valuation from PCs, even a large decline in its PC market share would likely have only a minor impact on its overall valuation. It also determines that Texas Instruments' shares are a reasonable investment given its annual dividend, dividend growth history, and discounted cash flow valuation of around $55.9 billion compared to its recent market price of $52.6 billion.
This document discusses the emerging role of talent advisory services in organizations. It argues that talent has become a key factor in organizational success and competitive advantage. Effective talent management is needed to guide decisions around attracting, developing and retaining talent, while linking talent capabilities to business outcomes. Three forces are driving the need for sophisticated talent advisory services: (1) a risk argument that outlines how poor talent management can destroy shareholder value; (2) a value-creation argument showing a correlation between effective talent management practices and improved financial performance; and (3) a regulatory argument around compliance requirements. The document advocates for talent advisory functions to assess and mitigate talent risks, in a similar way that internal audit assesses financial and compliance risks.
The 5 Most Dangerous Mistakes Law Firms MakeRuben Santiago
This document discusses the most dangerous mistakes law firms can make and their impacts. It identifies five major trends that must be addressed: escalating competition and accelerating change, the impact of stress, increasing dependence on human capital amid a shrinking talent pool, rising leadership demands, and strategic relationships. The document urges firms to take decisive action to secure future prosperity by mastering these challenges through better planning, policies, and managing internal and external relations. It emphasizes the importance of having a laser-focused strategy and flawless execution to stay competitive in today's environment of constant change.
What makes a successful venture capitalistPil Soo Son
The document summarizes findings from a study on what makes a successful venture capitalist. It involved surveying 145 venture capitalists and interviewing 10 industry leaders. Key findings include:
1. Most venture capitalists have an MBA, with many from top schools like Harvard and Stanford. They also often have technical degrees or experience.
2. Soft skills like listening, recruiting talent, and advising were seen as more important than financial skills. Experience as a CEO was also considered valuable.
3. Firms operate as flat partnerships, with mentoring playing a key role in development. Venture capitalists spend more time on management assessment than financial analysis with portfolio companies.
What makes a successful venture capitalistPil Soo Son
This document summarizes a study on what makes a successful venture capitalist. It conducted surveys of 145 venture capitalists and interviews with 10 industry leaders. The key findings were:
1. Soft skills like listening, recruiting talent, and advising portfolio companies were considered more important than financial or technical skills.
2. There are various educational backgrounds among venture capitalists, but most had technical degrees and MBAs, and many had operating experience.
3. During due diligence, venture capitalists spent most time on management assessment rather than financial analysis. They also spent significant time coaching and advising portfolio company management.
1) HR audits have evolved over the last 25 years from simple checklists to comprehensive processes that are integral to risk management and strategic management. They increasingly assess outcomes and the value added by human resources.
2) External forces like increased regulations and internal demands for assessing human capital risks have increased the scope and use of HR audits. HR audits now aim to be diagnostic, predictive and action-oriented to support business success.
3) Effective HR audits address five components - activities, behaviors, risks, internal controls, and outcomes. Leading tools like the ELLA audit incorporate these to help organizations enhance human capital value and reduce employment liabilities.
The Importance of Total Cost of Ownership: How Midsized Companies Can Find Co...Adrian Boucek
One of the most important metrics that organizations need to think about is the total cost of their workforce. Referred to as Total Cost of Ownership (TCO), this measure enables an
organization to obtain a realistic picture of what they are actually spending on their employees and the management of them.
Portfolio Company Board Seat Survey Resultsmensa25
The National Venture Capital Association and Dow Jones VentureOne released the results of a study on differing practices and attitudes of venture capital-backed company boards. The study was based on surveys of over 700 venture capitalists and CEOs and revealed that while VCs and CEOs think about the same issues, their perspectives often differ. Some of the top issues of concern identified were exit strategies, financing rounds, management transitions, and conflicts between fiduciary responsibilities and financial obligations. The study provided insights into board activities, time spent, areas of agreement and disagreement between VCs and CEOs, and the perceived value that VCs provide to company boards.
This document provides an executive summary of a survey conducted by RMA and PwC on the transition from Libor discounting of derivatives to non-Libor discounting. The survey included responses from 43 financial institutions globally. Key findings include that most institutions report being partially through or still working on the transition, with collateralized transactions addressed before non-collateralized ones due to fewer standardized approaches. Challenges involved methodological issues, data/systems capabilities, and operational complexities. The transition has increased costs and resource demands for institutions.
Bus 475 capstone final examination part 2 new 2016alicalland
1) The document provides a summary of the BUS 475 CAPSTONE FINAL EXAMINATION PART 2 from 2016, including sample questions and multiple choice answers.
2) It discusses accounting topics like adjustments, financial statements, inventory, and internal controls.
3) The summary is intended to help students prepare for and study from past examples of the BUS 475 capstone exam.
Today's crowded and ever-growing private equity market means that buyout multiples continue to rise, making the deployment of capital a persistent challenge.
Read the study to find out how successful organisations are able to convert high-level Analytical strategies into actions that truly deliver business value.
Make the right choices to create a winning strategy by Kenneth MikkelsenKenneth Mikkelsen
What makes good corporate strategy? Kenneth Mikkelsen interviews Roger Martin, Dean of Rotman School of Management about his book Playing to Win: How Strategy Really Works.
The document discusses the future of workforce analytics, arguing that as companies rely more on contingent labor, they will need more sophisticated analytics to strategically manage their workforces. While most companies recognize the value of analytics, many only use basic transaction data that does not provide deep insights. The document advocates integrating internal transaction data with external market data to better understand workforce dynamics and make informed strategic decisions. It provides examples of how baseball analytics has evolved to optimize team performance and argues that a similar approach could benefit workforce management.
CULTURAL DUE DILIGENCE AS COMPETITIVE ADVANTAGE IN CROSS-BORDER MERGERS AND A...Iulian Warter
This document discusses the importance of cultural due diligence in cross-border mergers and acquisitions. It notes that managing cultural differences is crucial for M&A success but is often overlooked. Cultural due diligence helps identify cultural factors that could impact integration and develop strategies to prevent conflicts. The document reviews how cultural clashes have undermined mergers and acquisitions in the past. It argues cultural due diligence is needed to understand risks and opportunities from differing national and corporate cultures during M&As.
This document discusses the importance of strategic thinking for leaders and organizations. It finds that only 23% of US executives are strong strategic thinkers, and that poor strategy was the #1 cause of bankruptcy in nearly 50% of cases studied. It then discusses three disciplines of strategic thinking: 1) generating insights, 2) focusing resources through tradeoffs, and 3) executing strategy to achieve goals. Only about 30% of managers exhibit high levels of strategic thinking. The document argues regular practice of these three disciplines can help develop strategic thinking skills.
The document discusses three trends influencing competitive intelligence (CI) abilities: organizational acculturation where all employees contribute to intelligence efforts, corporate governance with board-level priority on reliable earnings forecasts, and disruptive innovation in predicting competitive battles. It also discusses CI processes like collecting information from primary and secondary sources, analyzing data versus just collecting facts, and using tools like SWOT analysis, growth vector analysis, and disruptive innovation theory. The document advocates for an equilibrium approach to CI that can be both decisive in making recommendations and incisive in interpreting emerging trends.
Post-Merger Integration as an Instrument for Improving M&A EfficiencyPaulOstling
This document discusses post-merger integration as a way to improve the efficiency of mergers and acquisitions. It defines different types of mergers and acquisitions and notes that about 1/3 of M&A deals outright fail and another 1/3 miss economic goals. Critical factors for success include careful strategic analysis, planning for integration, managing stakeholders, and establishing metrics to measure success. Effective post-merger integration requires combining companies in reality, not just on paper, and is akin to change management. Key elements of a smart integration plan include addressing culture, people, customers, systems and communicating extensively. Common mistakes include not addressing resistance to change, lacking M&A expertise, and failing to reward integration teams.
Deloitte Global Business Driven Hrt Financial Servicestscarborough7
This Deloitte report outlines key human capital challenges facing today\'s HR executives in financial services, and how building a more strategic HR partnership with broader business strategies can help overcome these challenges.
Companies, mergers and investments don't fail because of lousy products - it's culture and behaviour that determine distinction! Make your company, merger or investment stand out sustainably by focussing on what really matters: the people and their behaviour!
State of Internal Audit Profession - 2015 - PWCErik Lundberg
The document summarizes the key findings of PwC's 2015 survey on the state of the internal audit profession. It finds that external factors like regulations, competition, and changing customer behaviors are driving significant and rapid transformation across many industries. Companies are undergoing major changes to their business models and operations to respond to these challenges and opportunities. This level of disruption and transformation is taking place in uncharted territory and significantly altering companies' risk landscapes. The survey suggests internal audit functions will need to evolve to maintain their relevance by focusing on emerging risks, developing new skills, and closely aligning with the business in this shifting environment.
This document provides a comparative assessment of the stock valuation of Intel Corporation and Texas Instruments. It uses both absolute and relative valuation models, including discounted dividend, free cash flow, residual income, and market multiples models. The analysis finds that while Intel derives around 50% of its valuation from PCs, even a large decline in its PC market share would likely have only a minor impact on its overall valuation. It also determines that Texas Instruments' shares are a reasonable investment given its annual dividend, dividend growth history, and discounted cash flow valuation of around $55.9 billion compared to its recent market price of $52.6 billion.
This document discusses the emerging role of talent advisory services in organizations. It argues that talent has become a key factor in organizational success and competitive advantage. Effective talent management is needed to guide decisions around attracting, developing and retaining talent, while linking talent capabilities to business outcomes. Three forces are driving the need for sophisticated talent advisory services: (1) a risk argument that outlines how poor talent management can destroy shareholder value; (2) a value-creation argument showing a correlation between effective talent management practices and improved financial performance; and (3) a regulatory argument around compliance requirements. The document advocates for talent advisory functions to assess and mitigate talent risks, in a similar way that internal audit assesses financial and compliance risks.
The 5 Most Dangerous Mistakes Law Firms MakeRuben Santiago
This document discusses the most dangerous mistakes law firms can make and their impacts. It identifies five major trends that must be addressed: escalating competition and accelerating change, the impact of stress, increasing dependence on human capital amid a shrinking talent pool, rising leadership demands, and strategic relationships. The document urges firms to take decisive action to secure future prosperity by mastering these challenges through better planning, policies, and managing internal and external relations. It emphasizes the importance of having a laser-focused strategy and flawless execution to stay competitive in today's environment of constant change.
What makes a successful venture capitalistPil Soo Son
The document summarizes findings from a study on what makes a successful venture capitalist. It involved surveying 145 venture capitalists and interviewing 10 industry leaders. Key findings include:
1. Most venture capitalists have an MBA, with many from top schools like Harvard and Stanford. They also often have technical degrees or experience.
2. Soft skills like listening, recruiting talent, and advising were seen as more important than financial skills. Experience as a CEO was also considered valuable.
3. Firms operate as flat partnerships, with mentoring playing a key role in development. Venture capitalists spend more time on management assessment than financial analysis with portfolio companies.
What makes a successful venture capitalistPil Soo Son
This document summarizes a study on what makes a successful venture capitalist. It conducted surveys of 145 venture capitalists and interviews with 10 industry leaders. The key findings were:
1. Soft skills like listening, recruiting talent, and advising portfolio companies were considered more important than financial or technical skills.
2. There are various educational backgrounds among venture capitalists, but most had technical degrees and MBAs, and many had operating experience.
3. During due diligence, venture capitalists spent most time on management assessment rather than financial analysis. They also spent significant time coaching and advising portfolio company management.
1) HR audits have evolved over the last 25 years from simple checklists to comprehensive processes that are integral to risk management and strategic management. They increasingly assess outcomes and the value added by human resources.
2) External forces like increased regulations and internal demands for assessing human capital risks have increased the scope and use of HR audits. HR audits now aim to be diagnostic, predictive and action-oriented to support business success.
3) Effective HR audits address five components - activities, behaviors, risks, internal controls, and outcomes. Leading tools like the ELLA audit incorporate these to help organizations enhance human capital value and reduce employment liabilities.
Portfolio Management for New Product Development: Results of an Industry Practices Study
By Dr. Robert G. Cooper, Dr. Scott J. Edgett and Dr. Elko J. Kleinschmidt
A FINANCIAL STATEMENT ANALYSIS OF COMPANIES WITH DIFFERENT OWNERSHIP CONCENTR...Fiona Phillips
This document provides a literature review on research related to the relationship between ownership concentration and firm performance. It discusses several theories on how ownership structure can impact firm value and reviews studies that have examined the effects of incentives and managerial ownership levels. The literature review finds mixed results from prior research and conflicting theories on the relationship between ownership concentration and performance. It aims to contribute to the body of research on this topic.
This document discusses the importance of employee engagement for organizations. It defines employee engagement as employees exerting discretionary effort and remaining loyal to the organization. Research shows engaged employees are more productive, innovative, and loyal with lower turnover. The document notes that while many organizations implement engagement initiatives, true payoffs are not always realized. It explores drivers of increased focus on engagement including people becoming the primary competitive advantage and retention challenges in the "war for talent". The researcher aims to study engagement levels in the apparel retail sector and relationships between engagement and factors like satisfaction and retention through surveys.
In this paper, I explore how the accelerator model could generate adequate returns by providing a hedge against risks present in the niche private equity model known as the Search Fund.
Best Practice Corporate Board Governancephil_farrell
The document discusses key elements of effective corporate governance for boards of directors, including establishing clear roles and responsibilities, ensuring independence and objectivity of board members, providing proper induction and training, and defining relationships with third parties. It also covers important board processes like strategy development, risk management, succession planning, and performance evaluation. The overall message is that corporate governance involves putting the right structures, policies, and oversight practices in place to guide a board in fulfilling its duties.
The article summarizes the results of a study that ranked the top 40 companies for leadership development. Procter & Gamble ranked first due to its CEO's commitment to leadership development and focus on growing talent internally. Other top companies included IBM, General Electric, 3M, and Southwest Airlines. The study evaluated companies based on factors like formal leadership programs, CEO involvement, internal hiring, and financial performance. It found some differences between public and private companies in priorities and challenges for leadership development. A separate list highlighted the top 10 private companies for developing leaders.
A Hands-on Future of Endowments and FoundationsState Street
The endowment and foundation sector is increasingly investing in alternatives like infrastructure, private equity, and emerging markets to drive performance and diversification in a low interest rate environment. Many funds plan to increase their risk appetite and shift more assets into alternatives. However, most lack the operational infrastructure to effectively manage increasingly sophisticated portfolios. There is a need for improved manager selection, transparency into alternative investments, and governance structures to oversee complex strategies.
The document discusses the findings of a survey on capital budgeting and capital structure decisions conducted by finance experts. Some key findings:
1) Most companies use discounted cash flow and net present value techniques for capital budgeting decisions, consistent with academic theory.
2) However, for capital structure decisions, companies rely more on informal rules of thumb rather than trying to minimize the weighted average cost of capital.
3) Firm size significantly impacts practices, with large firms more likely to use net present value and small firms relying more on simple payback period.
How Opinion About Job Performance Becomes FactMiqui Mel
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2. Contents
Methodology ii
Foreword 1
Executive Summary 2
Survey Findings
i. The Acquisition Process 3
ii. Post-Deal 5
iii. Your Own Company 7
iv. Future Issues 9
About RHR International 10
Notes & Contacts 11
Methodology
In November 2006, RHR International commissioned
Remark, the market research division of Mergermarket, to
carry out a global research project concerning the human
capital and management issues encountered by private
equity firms throughout their fund cycle.
The aim of the research is to provide an insight into what
investors look for in prospective management teams, how
they assess talent within their portfolio companies and their
own funds, and how they expect human capital issues to
develop for private equity in the future.
Remark interviewed over 100 senior private equity
practitioners in the US and Europe by telephone in December
2006 and January 2007, with all respondents guaranteed
anonymity.
3. Human Capital in Private Equity –
Foreword
The past year saw an unprecedented amount of private equity coverage in the global business press.
Barely a day has gone by without yet another deal being
struck between a private equity firm – or increasingly
consortiums of firms – securing the ownership of attractive
companies. Many of these target companies are no longer
the fledgling or flailing type; indeed, ever-growing private
equity firms are increasingly using consortium vehicles
to target some of the world’s biggest and most famous
companies and brands.
Private-equity firms already own a growing stable of the
worlds most famous companies – Hertz, Neiman Marcus
and Toys “R” Us, among others. Last year saw nine of the
ten largest buyouts in US history. Furthermore in recent
months there has been a flurry of private equity firms
pitching for some of the UK’s biggest household brands.
In both the US and UK, private equity has moved beyond
mid caps and into the big league of listed companies. In
short, almost nothing appears out of reach of the private
equity backed buyout.
What is becoming increasingly apparent is the stakes are
high and appear to be getting higher. But what is often
not appreciated is that in the midst of all this frenzy, there
are some interesting dynamics and differences that are
inherent within and around the private equity firm and
the deals it strikes.
For some years, RHR International has been watching this
with ever-growing interest, both from inside and outside our
private equity clients. What we have been observing are
fundamental differences in the way private equity firms are
resourced and run, and equally in the way they approach
and assess their next targets. But this is mainly anecdotal
evidence. As psychologists, we wanted to delve further
into some of these hypotheses and test them through more
formalised research. Armed with more conclusive evidence
of what is actually backing and driving these burgeoning
deals, we hope to better understand the types of people,
dynamics and associated practices of private equity firms for
our clients. Our intentions for this are three-fold: to better
inform the industry, serve our clients and ultimately, help to
make them even more effective in the management of their
companies – both within their portfolios and their own.
We are very excited to bring you the findings of our research,
Human Capital in Private Equity.
RHR International Company
4. Executive Summary
• Over two thirds of respondents (69%) believe that poor
company performance is either very often or always
attributable to management issues.
• Respondents were divided over whether management
changes are implemented quickly and effectively enough.
37% believe they make such changes quickly, however,
factors such as incumbent management and ‘egos’
were noted by respondents as impediments to quick and
effective change.
• Respondents identified two primary difficulties to
conducting a management assessment. 43% of
respondents cited the limited time private equity
practitioners get with the management of a prospective
portfolio company while 22% acknowledged the
unreliability and unsuitability of the reference/track record
assessment method for gauging future performance.
• Respondents were keen to demonstrate that private
equity firms are moving beyond a more instinctive
approach when it comes to picking talent.
• Respondents use a combination of methods when
assessing the management and leadership qualities
in a company pre acquisition. Carrying out tests and
assessments whether they be internal (70%) or external
(26%) were cited by the majority of respondents as well
as taking references (59%).
• When assessing the management teams of a potential
portfolio company, respondents noted that current
and past performance is taken into account in addition
to finding a team that collectively performs well. This
implies less attention is given to scalability and future
performance.
• The vast majority of respondents (85%) are at a
company which regularly assesses the performance
and development of management teams. This mostly
(59%) takes the form of annual or quarterly assessments
and (360 degree) reviews. However, many of these
respondents noted that reviews do not take place at
Partner level or above.
• Given the increased competition in private equity, over a
third of respondents see reorganisation and management
assessment occurring very often post deal.
• With private equity continuing to develop in both
size and scope, 54% of respondents believe that the
management of the private equity firm will become more
institutional in culture, which will bring a need for greater
professionalism, structure, specialism and operational
excellence.
– Human Capital in Private Equity
5. Human Capital in Private Equity –
Survey Findings
1.How do you look at management and
leadership qualities in potential acquisition
companies?
• Respondents appear to use a combination of methods
when assessing management and leadership qualities pre
acquisition. This mostly involves extensive interviewing
and carrying out internal (70%) and external tests (26%)
and assessments, as well as taking references (59%).
• On the one hand respondents continually underline the
role of the reference system and the importance of
‘personal opinion’ in light of interviews conducted with
management:
“[We get to know them] through feeling and human
appreciation. Of course we look at their achievement,
how people who have worked with them speak of them.
We build a picture like that, and if all the impressions we
get are convergent and build a coherent picture then it is
generally the right picture.”
• Furthermore, with some respondents, opinions on
management are built up during the course of the due
diligence, and then backed up later.
• On the other hand, respondents were keen to
demonstrate that private equity firms are moving
beyond this more instinctive approach when it comes to
picking talent. Variously mentioned are benchmarking,
psychometric tests (individual and team), character
assessments, and skills, emotion and intelligence tests.
• A subset of these respondents (26% overall) use external
people to aid this assessment, including headhunters and
HR consultants.
The Acquisition Process
2.What difficulties do you encounter
in assessing/judging the management
team?
• There appear to be two primary difficulties faced in
management assessment: the limited time private equity
practitioners get with prospective portfolio company
management (43%); and the unreliability and unsuitability
of the reference/track record assessment method for
gauging future performance (22%).
• The former is a symptom of an ever increasingly
competitive auction process, while the latter demonstrates
a flaw in the human capital strategy of many investors.
Indeed, with the limited access to management a
clearly foreseeable obstacle, it is perhaps surprising that
many respondents rely so heavily on the subjectivity
of a reference system that “does not distinguish good
managers from bad”, and of a track record analysis that
does not necessarily indicate future performance.
• In fact for 13% of our respondents, there is an acceptance
or frustration that the process is not a science:
“Standard procedures in assessment don’t exist [for
private equity]; the validity of findings is subject to
question; and you never know how those assessments
will change afterwards: it’s like a forecast.”
• As well as the limited time factor in auctions, a handful
of respondents also highlight the danger of putting off
management teams with too much human capital due
diligence. As one European investor noted: “If you go in
too forcefully it can sometime influence your likelihood of
winning the deal.”
The issue for private equity is whether the intuitive and instinctive
approach to selection it seems to prefer will guarantee success as deals
get bigger and the stakes higher. We are finding more and more private
equity investors are concluding it is not.
Dr. Robert Irving, London office
It is a sellers market and winning the auction is the clear
priority. Yet there is a need to mitigate investment risk on the
management team. The main requirement is to enhance the
quality of referencing and assessment. Some firms get it on the
table early that they will formally assess the management team
at the point of the deal being struck and that this is a core value
in the way they do business.
Dr. Paul Ofman, New York office
6. – Human Capital in Private Equity
3.What improvements could be made to
the way you currently assess/judge your
management teams?
• Over a fifth of respondents felt not much in the way of
improvements can be made to their existing processes,
in spite of current flaws. These well intentioned but rather
laissez faire attitudes are perhaps best summed up by the
following respondents;
“Nothing specific is needed; just general improvements
to existing methods.”
“You just have to trust your gut feelings; you can only
learn from things after they happen.”
• For a further fifth, the solution lies in dealing - or rather
coping - with the time and references issues. In other
words, most respondents focus on making the best of
a less than optimal structure:
“Getting to know them [management] before the deal
actually is a deal. We are spending increasing amounts
of time meeting good managers.”
“I should have more access to truly independent
references. It’s not easy to find the right people to talk
about someone, and this is the key.”
• However, for almost 25% of respondents, the greatest
improvements should be made by engaging external
assessment people and techniques, and performing more
in-depth or systematic tests.
“The industry needs to professionalise itself: more
external; more structured; more templates.”
• For some respondents, however, the skill of good private
equity investment lies in the ability to judge management
attributes. Some are also sceptical of blanket management
due diligence: “it’s horses for courses”, summed up one
respondent.
4.When you look at the “management assets”
of a potential portfolio company, what are the
most important things you focus on/look for?
• The current and past performance of management teams
is the most important factor identified by our respondents
when assessing management teams of a potential
portfolio company. Finding a team that will collectively
perform well is also ranked highly, as is the ability to make
hard decisions.
• Ideal management teams are not necessarily those that
come with strong professional relationships or networks,
nor need they individually be particularly star performers.
0 20 40 60 80 100
Strength of professionally
relationships/network
A team of star
performers
Resilience
Ability to manage ROI
Reputation
Ability to make
'hard' decisions
A team that collectively
creates star performance
Current/past
performance
Most important
Very important
Important
Less than important
Not important at all
Percentage of respondents
If external providers are to be used to assess management teams
it is essential they really understand what drives success in the
private equity business scenario and can add real value in their
judgments about people. The profile of success in private equity is
not the same as in corporate life.
Dr. Ed Ryterband, New York office
Private equity should be less about the past performance of a
management team and more about whether it is scaleable.
That is, can its members adapt to meet the demands of the
investor for higher performance in relatively short time scales?
Dr. David Astorino, Philadelphia office
Survey Findings
7. Human Capital in Private Equity –
5.In what ways do you ensure and assess
that senior management deliver on strategy/
trajectory post-deal?
• For the majority of respondents (64%) management is
closely monitored, given defined performance indicators,
targets, objectives, budgets, incentive schemes or
business plans. This is deemed the best way to ensure
management are on the same trajectory as investors, and
to assess the qualities of those teams.
• A further 15% use regular reviews and assessments to
gauge performance, some of whom noted the role of the
chairman to mediate.
• Finally, 20% simply highlight the benefit for spending more
time with investee companies:
“Spending a lot of time with them; form a close
relationship with them; and use a combination of formal
and informal tools.”
6.Are there any common characteristics that
you believe inherently exist in management
teams that fail post-deal?
• Although no clear attribute is mentioned by respondents
overall, what was talked about mostly was an inability
to execute. Respondents variously highlighted lack of
leadership, differing objectives, bad communication, poor
delegating skills, no flexibility, and over-optimism.
• But no single ingredient of failure is identified, and indeed
nearly a fifth of respondents agree that “each deal and
each group is different.”
Post-Deal
7.How often is lack of performance due to
management issues?
• For over two thirds (69%) of respondents management
issues are either very often or almost always the reason
behind poor performance.
“Poor management is always the problem, as the very
best management can even turn rotten businesses into
good ones.”
• Only a fifth of respondents cite other sources of poor
performance, with a large proportion of these pointing to
market forces as the primary contributor.
• Whether this is accurate or not, the fact remains that
given the importance of management to the success
of an investee company’s performance, the majority of
respondents appear less inclined to invest in or explore
significant alternative management assessment methods.
8.Given the increased competition in
private equity, how often do you find that
management assessment and reorganisation
is occurring post-deal?
• Over a third of respondents see reorganisation and
management assessment occurring very often (more
than 50% of cases) post deal.
• This appears to be a hallmark of a private equity market
which requires success within a limited timescale (“we
are not patient: if someone needs to be replaced, we do it
quickly”) and one which necessarily requires tweaks to be
made to investments:
“Reorganisation is an ongoing process in every deal: there
is constant assessment. It’s absolutely critical.”
“It [reorganisation] happens more often than we would
like; the current climate means there is often not enough
time to assess management beforehand, with a greater
focus on the actual business and money.”Our clients emphasise that time needs to be devoted to establishing
a solid platform off which growth initiatives can be launched. This
requires a range of initiatives including assessing the management team,
determining the organisation structure, improving financial reporting
and other systems and reviewing performance and evaluation systems.
Only then can attention be turned towards strategic initiatives.
Dr. John Del Monaco, Boston office
Our research echoes the findings of SJ Berwin’s research
in 20031
that poor management quality was the principal
cause of deal failure across European private equity.
Dr. Robert Irving, London office
1
The Human Capital Equation – 2003, published by mergermarket
8. Survey Findings
• However, a third note that change rarely occurs or
confidently assert that they only chose companies with a
proven management.
• Some further interesting observations from respondents
are that management changes are much more prevalent
now than two or three years ago: “it’s happening more
often than in the past, and much sooner within the cycle”.
• In addition, some respondents noted that an increase
in secondary buyouts mean funds are taking less of a
gamble on management ability, but need to focus more
on maintaining these management teams’ interest and
incentivisation.
9.Do you feel that you make management
changes quickly and effectively enough?
What, if any thing gets in the way?
• Respondents are almost evenly divided over whether
change is implemented quickly enough. On the one hand,
37% assert that they make management changes quickly.
Reluctant incumbent management and ‘egos’ are noted
as getting in the way of implementing these changes.
There also appears to be caution determining these major
changes:
“There is a tendency to hesitate. We always need to
ensure it’s the right decision as it’s a large upheaval.
We also need to be humane in the treatment of the
outgoing team.”
• Rather candidly 40% admit that changes are not made
quickly or effectively enough. Respondents are reluctant
to disrupt the business (“We tend to give people the
benefit of the doubt for a little too long.”), to highlight
their initial mistakes, and to enter possibly lengthy legal
battles. Finally one US respondent highlighted an issue
that becomes more important in light of the increased
competition amongst funds to perform well:
“We’re not as quick as we should. Clearly poor
performance makes changing management easy.
It is the average performers where we are slow to act.”
10.In anticipating a liquidity event (merger, IPO;
secondary buyout), what, if any, management
preparation do you perform pre-exit?
• A quarter of respondents prepare their management
teams for exit through training, coaching and assessment.
This might involve preparing them for communicating
with the press or investors, for presentations to potential
buyers, and exposing them to investment bankers and
non-executive directors. As one US respondent noted:
“We aim for open and honest communication, and
integrate them into the process. We all want no surprises,
and also its practical as buyers ultimately need to do their
due diligence.”
• Just under a fifth of respondents highlighted their
openness to change management pre-exit, in order to
bring in the skill sets necessary to achieve the best price.
Often this appears to involve bringing in a ‘City-friendly’
Chairman, beefing up with non-executives with public
company experience, possibly de-risk the business by
making the company less dependent on key directors and
leaders.
• But equally a fifth of respondents highlighted the
need to do nothing that disrupts the business, and
“let management get on with running the company
successfully”.
– Human Capital in Private Equity
If the assessment of the people and the organisation is wrong or late,
the investor will run the risk of funding growth initiatives with an
organisation and people that are basically unfit for purpose, which
ultimately leads to confusion and failure.
Dr. Grant Levitan, Chicago office
Good practice increasingly requires an independent assessment of
management pre-exit in order to factor management capability
into the balance sheet when exiting an investment.
Dr. Guy Beaudin, Toronto office
9. Human Capital in Private Equity –
12.What different characteristics do you
believe are required by a successful leader
of a successful PE firm?
• For over half of our respondents, a successful leader
within a private equity firm specifically needs to have a
good combination of the key business skills. These include
decision making, strategic thinking, vision, market and
business insight; analytical and financial skills, negotiation
skills, and the ability to act quickly and take risks.
• For nearly three quarters of respondents, however,
private equity leadership is about personality and people
management skills. They highlight the need to be flexible,
creative, honest and confident, and the need to have
integrity, empathy and charisma to motivate people with
first class business skills.
“It is quite difficult; a good investor is not automatically
a good leader. We have to be able to judge personalities
for what they are. And also be able to stimulate intelligent
people there is a need to be charismatic, and people in our
teams are our equals in terms of capacity and sometimes
better, but we need to be seen as leaders.”
11.Do you regularly assess the performance
and development of your own (management)
teams? How?
• Most respondents (85%) are at firms where some form
of assessment takes place for internal teams. This mostly
(59%) takes the form of annual or quarterly assessments
and (360 degree) reviews. However, many of these
respondents noted that reviews do not take place at
Partner level or above.
• For 20% of respondents, performance assessment
is almost purely financial: “Financial performance is
unfortunately the only method to assess performance
in our industry”.
• Only 3% mention using training or mentoring
methodologies as part of the internal development,
and a further 3% use external assessors:
“We have a consultancy firm that also comes in to assess
the team each year. Our goals are set, and we know what
stage everyone is at by having everyone on the same
page.”
Your Own Company
As private equity firms grow in size and sophistication, people
leadership skills will become increasingly critical to their success.
However, this hits on the paradox that good investors don’t
necessarily make good leaders. Indeed, this may command two
parallel career ladders to success within the private equity firm – one
based on technical and another on leadership excellence.
Anna Bond-Gunning, London office
10. Survey Findings
13.How do you make sure you get and keep
the best talent for your firm?
• Perhaps unsurprisingly for an industry so focused on
financial performance, 62% of respondents notes that
monetary incentivisation is the best way to retain talent
in their firm.
• In addition, however, the industry as a whole is seen as
being dynamic, diverse and different to the rest of financial
services, and hence a good place to work and keep staff
motivated:
“It’s about providing an all encompassing experience:
interesting deal flow; larger deals; a good environment
and quality financial packages.”
• This does, of course, still mean that companies
are required to differentiate themselves from their
competitors, and so 43% of respondents highlight the
need to motivate staff with more responsibility, with
interesting deal work, and with good working culture.
“People are involved in every part of the business, and
aware of all transactions. It creates awareness and
ownership for the entire team. By doing this, everyone
is involved in everything: junior and seniors work together
and learn from each other. It is the best kind
of apprenticeship and knowledge transfer.”
• Although 18% mentioned having some formal form of
mentoring and/or development programmes, respondents
maintained that internal instruction is key to retention of
the best staff:
“It’s about having a management that challenges and
grows. Offering training internally and externally, and
recognising people when they do a good job.”
14.Within a management context, how will
tomorrow’s private equity firm be different
from today’s?
• The largest share of respondents (40%) believes that
the management of private equity firm will become
“more operational, more specific and specialised” and
“professional and more structured”.
• In particular operational and industry experience will
become more important. As one respondent says:
“People management will become very important, more
operational background (i.e. industry experience) and
functional experience not just financial. Value adding and
creation will become very important.”
• As one US respondent elaborated, there will be a need
to “engage more specialists in each area and make sure
people are more professional than today.”
• Otherwise, 14% of respondents feel the future will bring
‘larger or more international firms and more institutional
cultures.” As one European respondent says:
“Private equity firms will be considerably bigger with
greater resources. They will become more institutional
in character. Investors will also drive for more stable
structures, and private equity will need to offer this
stability to be able to compete.”
• Otherwise, a further 14% of respondents believe that
private equity management will not change greatly.
– Human Capital in Private Equity
Bigger firms command not only more specialist investors, but
increasingly, more formal and professional leadership of these specialists.
Similarly, as the private equity industry falls under increasing scrutiny,
sound governance and conduct will become key to private equity firms’
public success or failure.
Dr. Paul Winum, Atlanta office
11. Human Capital in Private Equity –
15.What will be the same (or different) about
the successful leader of a PE firm in the future?
• According to a fifth of respondents private equity leaders
will need to become more operational, professional,
specialised and managerial in the future as their companies
develop in size and scope, while being less of a deal
maker.
“They will still need to motivate intelligent people, but
they’ll need a broad understanding of different sectors and
geographies, and to deal with highly emotional individuals
and operational dynamics.”
• Furthermore, a fifth point to the need for a better balance
of internal and external motivation and communication
skills. Respondents highlighted the additional skills that
will be needed when expanding overseas, and when
private equity firms are exposed at a governmental or
public level. One respondent went further by adding that
the future will be
“...less identified by individuals. In twenty years it will
not be about one man, as it can be now, but more of a
team. It’ll be more like a bank and a franchise. There will
therefore be a different skill base needed: more focussed,
political, administrative and bureaucratic. All of this is due
to buyout firms growing so big, and the ever increasing
effect of regulatory issues and public scrutiny.”
Future Issues
12. 10 – Human Capital in Private Equity
RHR International is an international firm of management
psychologists that has advised companies on leadership and
organisational effectiveness for over 60 years. This includes
work within the private equity sector. Working with business
leaders, RHR consultants offer a powerful combination of the
behavioral sciences and business acumen to achieve results
for our clients. Our range of services specific to private equity
includes:
• Due diligence management assessments and
organisational assessments of target companies
• Post-deal, in-depth audits of CEO and management teams
to highlight strengths and gaps, to ensure the right talent is
in the right role
• On-going coaching for development of portfolio company
management
• Facilitating management relationships with the Board
Private equity firms use RHR International’s services
throughout the complete deal life cycle – from due diligence,
close, and post deal to preparing the portfolio company for
sale or IPO. At each stage, the analysis and methodology is
tailored to the outstanding issues and the sensitivity of the
situation. During due diligence, the need is for speed and
discretion in working alongside the deal team to gather and
analyse critical data on the target company’s management
team. Immediately after the deal, there is a window of
opportunity to dive deeper into understanding the strengths
and gaps in the leadership team and the organization. With
this information, decisions can be made on how to best use
the leadership assets currently in the company and whether to
hire external talent immediately if required.
Jeff Durocher
Vice President Market Development
RHR International
220 Gerry Drive
Wood Dale, IL 60191
630-766-7007
www.rhrinternational.com
About RHR International
13. Human Capital in Private Equity – 11
Notes Contacts
RHR International
UNITED KINGDOM
Fifth Floor, Egginton House
25/28 Buckingham Gate
London, SW1E 6LD, England
Tel: +44 207-828-6652
Fax: +44 207-233-7837
Robert Irving, Managing Director
ATLANTA
1355 Peachtree Street NE, Suite 1400
Atlanta, GA 30309-3263
Tel: (404) 870-9160
Fax: (404) 870-9164
Paul Winum, Managing Director
BOSTON
29 Commonwealth Avenue, 5th Floor
Boston, MA 02116-2349
Tel: (617) 859-0540
Fax: (617) 859-0544
John DelMonaco, Managing Director
CHICAGO
20 North Wacker Drive, Suite 1010
Chicago, IL 60606-2880
Tel: (312) 236-4909
Fax: (312) 236-7817
Grant Levitan, Managing Director
DALLAS
3 Lincoln Centre
5430 LBJ Freeway, Suite 1595
Dallas, TX 75240
Tel: (972) 380-9212
Fax: (972) 380-8419
Teresa DiStefano, Managing Director
DENVER
1700 Broadway, Suite 1110
Denver, CO 80290
Tel: (303) 839-1130
Fax: (303) 839-1941
Julie Wolf, Managing Director
LOS ANGELES
550 South Hope Street, Suite 560
Los Angeles, CA 90071
Tel: (213) 627-5145
Fax: (213) 627-6630
Peter L. Levin, Managing Director
NEW YORK
2 Grand Central Tower
140 East 45th Street, 20th Floor
New York, NY 1001
Tel: (212) 681-2880
Fax: (212) 681-2720
Paul Ofman, Managing Director
PHILADELPHIA
1515 Market Street, Suite 820
Philadelphia, PA 19102
Tel: (215) 564-1442
Fax: (215) 568-580
David Astorino, Managing Director
BELGIUM
375, Avenue Louise Bte 2
B-1050 Brussels, Belgium
Tel: +322-648-6650 (DD: +322-648-6650)
Fax: +322-648-8480
Olivier Schobbens, Managing Director
CANADA
330 Bay Street, Suite 1210
Toronto, ON M5H 2S8, Canada
Tel: (416)865-0824
Fax: (416) 865-0395
Guy Beaudin, Managing Director
CHINA
Mobley Group Pacific
Suite 2006-2007
One Corporate Avenue
222 HuBin Road
Shanghai 200021
Tel: (86 21) 6340 6222
Fax (86 21) 6340 6226
William Mobley, CEO Managing Director
(continued over page)
14. Notes Contacts
HONG KONG
Mobley Group Pacific
Level 25, Bank of China
Tower, 1 Garden Road
Central,
Tel: (852) 2251 1898
Fax: (852) 2251 1899
William Mobley, CEO Managing Director
FRANCE
ASK Conseil
8 rue Armand Moisant
75015 Paris
Tel: +33 (0)1 56 54 31 80
Fax: +33 (0) 1 40 47 50 43
Christine Arthaud
GERMANY
Metaberatung
Dreiflugelhaus
Einbrunger Strasse 63 H
40489 Dusseldorf
Tel: +49 (0) 211-405 60 40 (DD +49 (0) 211 405 60 40)
Rainer Neubauer
SWITZERLAND
Metaberatung GmbH
Alte Post
CH-3906 Saas-Fee
Switzerland
Tel: +41 (0) 27-957-1515
Rainer Neubauer
Mergermarket/Remark
80 Strand
London WC2R 0RL
Tel: +44 207-059-6100
Fax: +44 207-059-6101
Simon Anam, Managing Director, Remark
16. Disclaimer
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or other decision or action that may affect you or your business. Before taking any such decision you should consult a suitably qualified professional adviser. Whilst
reasonable effort has been made to ensure the accuracy of the information contained in this publication, this cannot be guaranteed and neither Mergermarket nor any of
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