Issues and solutions
Team and organisational strategy
Over the last 25 years it has become harder for investors to make money. Mid-market investors who used to pay low entry multiples, deployed plenty of debt, grew earnings due to mostly benign economic conditions, and backed experienced teams, now pay higher multiples, use less debt, are faced with a more volatile environment, and largely back entrepreneurs.
That shift has lowered overall returns, increased risk and forced the investment process (pre-and post-deal) to become more rigorous. Moreover, management teams expect investors to be value- adding partners not just light-touch backers.
What we do
We help investors understand the ability of a team and organisation to deliver a growth plan and ways to improve the chances of success by:
Pre-deal review/ Management Due Diligence (MDD)
The biggest cause of post-deal failure relates to an inability to execute and almost all mid-market companies need a dedicated initiative to ensure that their management and organisational arrangements adequately underpin scaling. We help investors understand the ability of a team and organisation to deliver a growth plan and ways to improve the chances of success.
Mid way review
There are several circumstances where growth company boards tend to seek Catalysis involvement during the period of investment, such as a need to integrate new teams or units into a coherent whole or performance has plateaued. We help boards understand the team and organisation drivers of a growth plan and ways to improve the chances of success.
Pre-exit review
With purchasers paying higher prices for companies, more attention is being devoted to the ability of management teams and the organisations they lead to scale, innovate and execute growth plans. We help shareholders and management teams anticipate how future buyers may perceive team and organisational effectiveness and take action to increase the chances of achieving the best possible valuation.
Clarification workshop
Sometimes management teams or boards need an efficient intervention to create clarity before launching a plan or to address a specific blockage. That can involve all sorts of issues, for example, clearing the decks post-deal or untangling team roles. We help boards and leadership teams work through their strategic options, create focus, prioritise initiatives and build an executable plan.
Explore our insights on team and organisational strategy
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The mid-market transition: Addressing top team bandwidth constraints
Managers in growth companies expect to work hard and it is desirable that things run reasonably ‘hot’ because that forces teams to ignore trivial issues.
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Why management due diligence (MDD) needed to evolve into team and organisation strategy - and beyond
We suggested recently that private equity investors are involved in building ‘value machines’ built from four components: partnership; governance; expectations; team & organisation strategy.
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Why the organisational balance sheet is as important as the financial one
You are, of course, very familiar with financial balance sheets and how they relate to on-going activities (think P&L) and concrete outcomes (cash).
Our frameworks and tools
Over more than 20 years, we have developed proprietary analytical frameworks and tools that underpin our work with clients and management teams. Read more about the frameworks and tools that we use to help inform client decision-making and align teams and investors.
How we can help
We have a long track record supporting investors and management teams with team and organisational strategy. If you would like to discuss your needs or situation, please get in touch.