Management Due Diligence
Management due diligence is about assessing and improving leadership, board and organisational effectiveness pre and post mergers and acquisition (M&A). Leadership teams are a critical business resource and the source of competitive advantage which directly influences the success of the business. Conversely, poor leadership is proven to contribute to business under performance and even failure.
The Occupational Psychology Group (OPG) has advised various Private Equity (PE) and Venture Capital (VC) clients over the last 30 years as well as private investors and corporate clients. We act as trusted advisors and confidants to both leaders and investors.
We advise clients on people risk and whether the leadership contributes effectively to the strategic objectives of the business. We also help clients to identify strengths and gaps in the leadership and management populations. Often, this is combined with human capital planning and organisational design as part of a comprehensive assessment process.
The benefits of Management Due Diligence
1. Our reports highlight business risk and strengths.
2. Provide an accurate and objective diagnosis of leadership capability and potential.
3. Highlight areas to address such as top management team and board skills gaps. This helps inform hiring needs and performance management decisions.
Assessing a leadership team and organisational structure pre acquisition
A leading multisite service provider was the subject of a potential PE investment. The OPG was commissioned pre investment to help identify the strengths and development needs at several levels:
1. The leadership team’s effectiveness and gaps
2. The management and leadership structure and governance. Whether the leadership structure was fit for the business
3. The organisational climate
The report presented by The OPG gave an honest appraisal of the leadership’s capability and identified gaps in the leadership structure around key business functions.
The data was also used post acquisition to inform restructuring at senior management team level.