Great insights from a panel discussion led by co-founder Sumeet Salwan this week. Any additions? #PrivateEquity #m&a #humancapital
Human capital due diligence: Why is it so challenging and how can these insights enhance investment decisions? ? That was the question that framed the discussion I moderated yesterday at the Private Equity International Operating Partners Human Capital Forum alongside four incredibly knowledgeable panelists. Thank you to Patrick Allen of Cerberus Capital Management, Katie Czerepak of Bain Capital, Jess Weber of Prelude Growth Partners and James Down of CPP Investments | Investissements RPC for their insights and refreshing candor about how we define, systematize and ensure human capital due diligence is an important part of an investment committee memo. ? ? We landed on a few takeaways to improve both the work and the outcomes: ? -Build a widget. While most every hand in the audience went up about performing talent due diligence, much less folks were delivering an output from that work such as a scorecard or framework that made it into the investment committee memo – the holy grail of documents when private equity firms make acquisition decisions. We need to move beyond artisanal approaches to establish a repeatable deliverable that's part of the valuation/investment thesis. ? -Earn trust and credibility with the deal team. Relationships with key decision makers lets the talent folks in the room earlier so they can deliver stronger assessments and deeper insights focused on the business outcome. ? – Turn human capital diligence into a differentiator. What’s better than an acquisition target saying yes , because they see a future you can build together? This is especially true in a competitive process when we're trying not to spook the herd, so to speak. ? This work is hard, no question. In part, because it’s a little like introducing the pre-nup during the wooing stage. With so much at stake, no one wants to do or say something that leads the desired party to walk. ? We’ve learned much from our work with PE clients. Beyond the CEO, our Talent to Value Playbook addresses the 20 to 30 roles that will deliver 80% of the value-creation plan. This enables the team to move more quickly once a deal is closed because we know the hot spots and the ones that need shoring up. ? Thanks again to Private Equity International, the panel and engaged audience. Such an important, emerging area that we need to bring our best thinking to achieve success. #PrivateEquity #TalentToValue #ValueCreation #HumanCapital #m&a #OPHC25 Pradeep Nambiar Jonathan McGowens Atul Kapur Nino Gorla Shefali Salwan