How we support the Corporate and Private Equity markets in Buyout: M&A: MBO/MBI: Growth Capital: Divestment: Turnaround
Brooklands has extensive experience in the support of major, complex investments, recognising the need to deliver high quality pre transaction analysis and vigorous post transaction change.
In the pre transaction stage, we work alongside more conventional financial, commercial and legal due diligence, analysing such critical areas as operational and organisation effectiveness.
We get under the skin of a business, analysing hard and soft issues, finding out what makes a business tick, and critically, its ability to change and deliver the investor’s aspirations. This critical pre transaction element is carried out through detailed Capability due diligence.
During the post transaction stage, we actively support management in the delivery of 100/180 day change plans, whether they are centred upon specific changes such as integration, operational improvement or complete turnaround.
Capability Due Diligence
What is it?
All businesses in all sectors have an operation in terms of leadership, strategies, people, structure and organisation, resources, processes, methods and systems. These are the enablers that produce results
Brooklands focuses on the understanding of the enablers within an organisation
Capability due diligence is the process that identifies the key enablers that can make or break the delivery of the post transaction plan – situation is far more important than sector
The focus can be on the whole business, or it can be targeted at specific functions or operations of the business, e.g. sales, supply chain, finance, IT and disaster recovery, cost management etc
It will target certain key enablers that are critical to business performance, e.g. the management of Working Capital
Another key area is the ability of management to move between cost and costof sales modes as circumstances dictate – this will help determine the sustainability and scalability of the operation
It will also address the soft issues, e.g. mood and temperature and what makesthe business tick, by taking a bottom up view and getting under the skin of the organisation
Why do it?
Challenge the business in terms of sustainability and scalability
Understand critical issues that will need to be addressed early in the post transaction stage
Understand the scale of the post transaction challenge
Support management
Help avoid surprises and anticipate hindsight
How is it carried out?
Through an informal blend of desk analysis, observation, one-to-one and group meetings, site visits and walking the floor
By mature consultants with senior line management experience; who understand the issues, know what to look for and can empathise with and support management during the potentially stressful due diligence processes
What is the added-value?
A working document adding value by identifying and advising upon: • Key elements of the (100/180 day) plan – the must do actions • Gaps in action/implementation plans • Areas for operational improvement
Management support through the due diligence process and buy-in to the size of the task ahead
The ability to hit the ground running on day one of the post transaction phase
