PRIVATE EQUITY | ACCELERATE
PRIVATE EQUITY | ACCELERATE
PRIVATE EQUITY | ACCELERATE
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BRIDGING THE GAP
THE FOUR PILLARS OF A STRONG ALIGNED RELATIONSHIP
CONSTANT/EFFECTIVE COMMUNICATION
PURPOSE AND INTENT
When businesses first start to work with their Private Equity backers, they undergo an enormous change. While it’s often an exhilarating period for all concerned, the needs of the investors mean there will be a relentless and demanding focus on growth, with targets and reporting requirements to match.
EXECUTION
TRUST
The two sides must start by sharing a common understanding and vision, and it’s essential that this remains solid: it’s particularly important in the early days when the impact of the change will be at its most intense. That’s what Accelerate is about – helping management teams and businesses get the most out of Private Equity. We know and understand both the entrepreneur and Private Equity, and we’re well positioned to mediate, facilitate and advise management teams on driving value into their businesses. AGENDA ALIGNMENT Every business is different, and no two Private Equity deals are the same. However, we have observed four fundamental areas that set the tone for every Private Equity relationship. If expertly managed so that both parties can stay aligned, the chances of realising full potential will be improved.
There’s a balance to strike between management team autonomy and Private Equity stakeholder involvement and different arrangements will suit different businesses. However, every successful
Even the strongest Private Equity relationship will never be entirely plain sailing. Key to navigating this is communication: management must be prepared to keep their private equity partners up to speed with whats going on, whether or good or bad. Therefore it’s critical to establish strong channels and reporting mechanisms with the investors.
Putting purpose and intent into practice. This is perhaps the single most demanding aspect of a Private Equity relationship. Management must be prepared for the profound and intense transformation that is about to take place. Collaboration to implement all aspects of the plan will support the overarching goals: X Cascading your action plan throughout your team, driving collective responsibilities X Incentivising more than just your top team.
The first step is to define and clearly communicate what success looks like to all stakeholders. As well as the investors and the business owners, this includes management and workforce. If everyone agrees on a common purpose and intent, the all- important collective direction of travel is much more clear.
relationship shares one essential element: trust.
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