Management Due Diligence (MDD)
MGP’s management due diligence process reduces the risks involved with Mergers & Acquisitions. It adds to the valid information available to the acquiring company, whether it be an operating company or private equity firm, supports them in making the right decisions when it comes to assessing a target company’s executive team and organizational culture, and enhances the integration process.
Management and culture are critical to a Deal’s Success!
Deep Analysis of Leadership Assets
To accelerate value creation, employing management due diligence helps the decision-making team by addressing the following six questions about the target company:
- Will this management team be able to execute our growth strategy?
- Will the organization’s culture support the objectives or get in the way?
- How can we accelerate management’s ability to execute the investment thesis?
- Which players do we keep? Who needs to go?
- How will this management team partner with us?
- How can we reduce reliance on past performance data to make future predictions about management effectiveness?
The Right Information at the Right Time is Critical
The MGP process
- Provides objective data for making timely decisions
- Before the deal:
Can this team drive real value?
Will the organization’s culture fit our values and strategy? - After the deal:
Are the right people in the right roles to accelerate to exit?
Can the culture be developed to enhance the value of the firm?
- Before the deal:
- Adds precision to a “gut” feel
- Accelerates Decision-Making,
- Improves Performance and Boosts Returns
Because competition for deals is fierce, highly mobile MGP reaction teams
provide rapid deployment and fast appraisal turnaround
Why MGP
We can reduce the talent acquisition risk. By using the “science of talent”, a unique combination of business guidance with psychological insights MGP saves clients millions of dollars in lost equity by providing careful evaluations of the key management talent within the target company. Services can be conducted in Cantonese, English, Mandarin, and Japanese.
Services Offered Include :
Due diligence on key management assets as well as an organizational assessment of target companies
- In-depth post-deal audits of CEO and management teams to highlight strength and gaps, ensuring the right talent are in the right roles
- Post-deal integration support
- Ongoing development of portfolio company management
- Facilitation of management relationships with the Board
