Private Equity Investor ECI, UK: Conducting Organisational Due Diligence

UK-based private equity investor ECI engaged Humatica to undertake organisational due diligence on Citation, a target acquisition. Citation provides legal services on a subscription basis to more than 8,000 small and medium-sized businesses, and has a strong track record of growth. After completing market and financial due diligence, ECI wanted to confirm that the leadership team and wider organisation could successfully deliver their growth plan.

Humatica reviewed all available information regarding historical performance and future aspirations. We then conducted in-depth structured interviews on leadership practices with each member of the leadership team, observed the business in action, and conducted psychometric assessments of the leaders. With these insights, Humatica formed fact-based views on leaders as individuals, the leadership team as a whole and whether the organisation’s structure, culture, processes and systems enabled delivery of the proposed value creation plan.

Humatica delivered detailed findings to ECI, the designated ‘buy in’ CEO and Chairman, with pragmatic implementation recommendations to inform the 100-day plan. These included strengthening the leadership team’s execution capabilities by adding new roles and revising the senior team structure, plus improving key decision-making processes and systems. Informed by Humatica’s work, ECI decided to proceed with the investment.

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Results

  • Provided a rapid, objective and structured analysis of the senior team within a typically sensitive and time critical deal process
  • Increased ECI’s insight in to the incumbent management team and the role played by the departing CEO
  • Provided a structured guide for thinking about the appropriate specification for the ‘buy in’ CEO and non-exec Chairman
  • Highlighted areas to improve the effectiveness of the Top Team for the Board at Citation to work through under ECI’s investment period