Private Equity – Organizational Due Diligence

Entromy delivered unmatched speed and quality in a comprehensive organizational diligence
Entromy delivered unmatched speed and quality in a comprehensive organizational diligence

Project Details

Entromy was approached by a top-tier private equity (PE) firm looking to build a differentiated capability of partnering with and enabling their portfolio company leadership teams to achieve superior growth.The PE firm, focused on growth stage investments, often replaces key executives to instill more mature processes, and adequately set up the organization for the necessary acceleration. However, they recognized the excruciating cost of potential mistakes when bringing in executives that could mis-read the situation or not successfully manage the cultural transition. They wanted to equip their executive teams with the right level of information to be successful.They recently acquired new investment and were making leadership changes. During this transition, they wanted to understand the state of the client, critical risks, and who were the key influencers that would help carry the next phase of growth.

Goals and Objectives

• Understand critical risks in the business• Identify key influencers and leadership candidates to become instrumental in the growth• Determine top issues to be addressed before accelerationWe provided a deep level assessment of the top executives, insight into the investment risks, a comprehensive assessment of functional areas, and organizational due diligence for the whole business – company brand, product quality, and organizational capabilities.Traditionally the PE firm would have enabled their executive team to fully understand the situation on the ground and refine their approach over few months. However, Entromy offered an attractive alternative.

The Outcome

In about one week from the launch, we provided a comprehensive assessment to the PE investment partners which validated many observations from pre-investment diligence, but also brought up a set of ideas that could be used to accelerate the business by leveraging the organization effectively, and to prevent any major hidden risks within the business by uncovering them quickly. The risks typically hide within dysfunctional components of the business around process, customer acquisition and satisfaction, supply chain, or leadership gaps.The diagnostic we ran ensured the executive team would be highly effective in driving the business forward.Entromy’s differentiated approach opened an unprecedented possibility of a week-long, comprehensive, and cost-effective organizational diligence that benefited the executive team and the investment team at the PE.