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Turnaround services for portfolio businesses

The recession is resulting in significant ongoing enforced restructurings and the opportunities for turnarounds are growing. When faced with such difficulties organisations need more than simple financial restructuring – They need operational overhauls.

While any Private Equity and Venture Capital (PE&VC) investment is risky, turnaround investments tend to be riskier and the risks must be mitigated by thorough Due Diligence processes. PE&VC firms that specialize in turnarounds need not only to get costs in line and prioritize which operations are necessary going forward, but they also have to ensure that they have the right management team to deliver the new strategy.

Turnarounds can lead to a dramatic change in board compositions and business focus. Turnaround leaders need all the tools possible to help them assess the management team of the organisation they have come to rescue. They need high quality information quickly.

At Crelos we have helped organisations in various sectors achieve successful turnarounds and realise how they can use their talent as competitive advantage to create corporate value.

 

Our unique services

  • Executive assessment: We offer in depth analysis of the human capital risks at the level of the individual, executive team and the organisation. This provides turnaround leaders with a clear picture of any risks presented by these individuals as well as understand how motivated they will be to deliver change and a new set of strategic objectives.
  • Using our precision psychology assessment model, we provide PE&VC investors with a comprehensive, objective and independent understanding of:

    • The people and teams in the business they are about to acquire
    • What their business plans mean for their people, and
    • How to make sure that their human resource is up to the challenge

     

    Our reports are impactful and provide clear governance recommendations on key capabilities, areas for development and risks with regards to delivering the strategic objectives for shareholders, stakeholders and regulators. Our proven in-depth Due Diligence methodology on senior team members brings out:

    • Their key capabilities, any areas for development as well as any risks with regards to the strategic objectives
    • We follow up with advice on how to mitigate these. Our model provides team development roadmaps and actions tightly woven into the business plan
    • A clear understanding of how members of the management team will behave in a wide range of different future situations
    • Using clear criteria and benchmarks we have developed over time, we show individual leaders and leadership teams how their current capability compares to leaders of high growth and high performing business units
    • Ways to significantly enhance the management control of the business, to underpin the investors' decision making and to deliver significant return on investment

     

  • Executive coaching: We support turnaround leaders and their teams throughout the process, helping accelerate development and embed change across the organisation. Our methodology combines:
    • A pragmatic business approach
    • Sensitivity to the individual’s needs and issues
    • Industry expertise
    • Personal experience in the challenges they are facing
    • Well respected coaching qualifications and models
    • A comprehensive network of contacts in the industry
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    By using an innovative and often challenging environment we help generate new ideas and perspectives and give them the tools to develop, flourish and substantially enhance their performance as part of the new high performing executive team.

  • Team facilitation: To be successful boards must be experts at Integrated Thinking. In complex and competitive organisations the board must benefit from the diversity of its individual leaders each bringing critical and challenging thinking. The more diverse the thinking the more the opportunity for superior strategy to evolve. However, the challenge comes not just in the breadth of opinion and information but in the board’s ability to avoid sham conversations, Group Think and power dynamics.

     

    Most boards need to be schooled in the behaviours required to affect proper strategic thinking. This requires them to truly understand the mental processes and necessary behaviours to maximise the intellectual horse-power of the Group. A proportion of any board’s time should be committed to enhanced awareness of inadequacies, weaknesses and strengths.

    Our senior consultants support management teams during and after turnarounds by facilitating their interactions and accelerating their understanding of what changes are required. Using our expertise in change management and team dynamics and behaviour, and drawing from the information generated during the assessment phase, we enable PE&VC firms to make use of the assessment information and leaders to train their boards to interact in a very efficient manner and turn the team into a high performing one.


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Ali Gill CEO and Client Director for the Private Equity and Venture Capital sector

'80% of the 1,000 plus VC-backed firms in the UK are still loss making, and 25% have no revenues. The financial crisis and historic under performance have caused investment in UK VC funds to dry up and the chief contributor to poor performance is, to one degree or another, the failure of the management teams of portfolio businesses.'

Peter Sanders Client Director for the Private Equity and Venture Capital sector