Protect and enhance your private equity investments through comprehensive pre-deal due diligence and well-executed value-creation plans, and investigate attractive investment opportunities.
Private equity investing always involves risk and uncertainty, but successful private equity investors minimise these dangers by choosing their deals carefully and maximising their potential for profitable, sustainable growth.
TCii has a strong track record in helping private equity houses to choose the best investment opportunities and nurture their development. Our service has four main strands: deal sourcing, pre-deal due diligence, post-deal turnarounds or kick-starts, and non-executive directorships.
1. Pre-deal due diligence
We can do this essential investigation, carrying out an in-depth analysis of your target enterprise. We usually conduct pre-deal due diligence after a private equity firm has carried out its initial market research.
As well as investigating the company’s standing and reputation, we also focus on another crucial asset: its leadership team. What are their past successes and failures? Do their leadership styles fit with the direction the company needs to take now? Our experience tells us that there is no more unpredictable, complex component of a private equity deal than human behaviour. Indeed, the management team often makes the difference between a smooth, profitable transaction and a major headache.
The key value of our pre-deal due diligence work lies in our ability to garner critical information from our network of knowledgeable contacts. Our privileged access to these resources enables us to find answers to questions not usually covered in the public domain.
2. Post-deal turnaround/kick-start work
Once you have made your decision and injected the required resources, you will want to keep the value-creation plan on track. To ensure robust execution of the plan, one or more members of our team will join the management team you have installed.
This branch of our work is based on the premise that the private equity house has developed granular value-creation plans up front and has sourced the best management teams. Nevertheless, we often find that these plans need revision and fine-tuning. As an independent and objective third party, TCii is in the ideal position to advise you on such revisions and to help you implement them.
The normal time frame for assignments like these can be anything from one month to six months, depending on the nature of the project. However, we are often retained to look at specific change issues across a number of investments.
3. Non-executive directorships
One of our senior team can join the board of a company in which you are investing. This team member will take up a position as non-executive chair or senior non-executive director, depending on the size and complexity of the investment.
TCii’s senior team have served as CEOs and MDs across a broad range of industry sectors. They have sound business experience, in both depth and breadth. The appointee will bring fresh, unbiased guidance to your investment, providing a vital strategic overview and keeping an expert eye open for overlooked risks and opportunities in the marketplace.
As well as fulfilling a key role in terms of corporate compliance, the NED will offer additional hands-on experience, practical business judgement and other professional skills that may be lacking in the target company.
4. Deal sourcing
In today’s huge and often confusing global market, a private equity firm’s ability to identify the best investment opportunities can be the most significant determinant of its long-term success.
Our work as a strategic and management consultancy often brings us into contact with large corporate businesses that are looking to refocus their growth efforts and divest themselves of parts of their organisation that are no longer core. We also do a certain amount of business with mid cap companies and SMEs, helping them with exit strategies or management buyouts.
These divestments and exits may be of interest to private equity houses working in similar industry verticals.
Next steps to a sound, profitable private equity investment
To find out more about our services for private equity investors, email us or call us on 020 7099 2621.