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.
Using our precision psychology assessment model, we provide PE&VC investors with a comprehensive, objective and independent understanding of:
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:
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.
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.
'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.'