Directorbank

How to maximise success in a PE buy-and-build strategy:
Having the right leadership in place with strong emotional engagement will drive value through increased innovation, motivation and strategic alignment.

In the fast-paced world of Private Equity, the buy-and-build strategy has emerged as a powerful route to value creation and growth. However, this is a complex process and one that is not guaranteed to give the returns envisaged.

Strong leadership is critical – getting the right leaders in the right roles is key to a successful buy-and-build strategy and crucial for accelerating performance. Yet too often the focus is on synergies, process, technology, valuation, and so on, and the capability of the leadership team is lost in a sea of data.

Securing the right leadership drives value and long-term success; leaders need to demonstrate strategic focus, strong stakeholder skills and emotional intelligence to harness employee engagement. Without this, companies can suffer culture clashes, demotivated employees and in-fighting, which will likely result in loss of talent and erosion of value.

In this article, Sandra Aldridge, business psychologist and founder of Highwire Consulting covers:

• What does the right leader look like in a Buy-and-Build scenario?
• Key steps in performing leadership due diligence when acquiring a company
• How leaders can leverage the power of emotions during the acquisition process
• Points for the Board when leading a Buy-and-Build strategy for portfolio companies

To read the full article, click here