Playbook: “Leveraging the Value Creation Engine for M&A Success”

• • • Application in Deal Thesis: Develop a strategic vision that reflects long-term, big-picture thinking. For any investment, whether it’s a buyout or a growth equity stake, clearly articulate the mission and vision for the company post-acquisition. Explain how this vision translates into growth and value creation.
    • Execution: Create and communicate a strong mission, vision, and values aligned with the PE firm’s overarching goals. This should be established early post-acquisition to guide all strategic efforts.

• • • Application in Deal Thesis: Leadership communication is essential to setting the tone for the portfolio company. As part of your thesis, detail how the new leadership team will establish clear lines of communication across all levels to ensure buy-in and transparency.
    • Execution: Develop and execute a consistent communication plan post-acquisition, ensuring regular touchpoints between leadership and staff, and emphasizing cultural alignment.

3.Feedback is the breakfast of champions

• • • Application in Deal Thesis: Build in mechanisms for regular feedback from employees and customers. In your thesis, outline how quarterly or biannual reviews and surveys will help identify areas for improvement, enabling the company to pivot when necessary.
    • Execution: Ensure that every team member undergoes annual reviews and quarterly check-ins, creating a feedback-driven culture.

4.Success is best when it’s shared

4. 4. • Application in Deal Thesis: Incorporate employee equity and bonus structures to align incentives. Your thesis should highlight how shared success among employees through performance-based bonuses or equity incentives will drive higher engagement and productivity.
      • Execution: Implement bonus plans and equity incentives for all employees to ensure everyone has a stake in the company’s success.

5. 5. • Application in Deal Thesis: Emphasize the role of collaboration and cross-functional teamwork in driving operational success. The thesis should describe how teamwork will be structured and leveraged within the organization to solve challenges.
      • Execution: Every employee should be part of a team that meets weekly to foster collaboration, innovation, and accountability.

6. • Application in Deal Thesis: Talent management is critical to any deal’s success. In your thesis, detail how you plan to retain, attract, and develop talent to build a competitive advantage. Focus on building a company culture that values its people.
   • Execution: Survey your team regularly and take actionable steps based on the feedback. Develop a talent management strategy to ensure long-term success.

7. 7. • Application in Deal Thesis: Set clear priorities for the company post-acquisition. Outline 2-3 key growth drivers in your deal thesis, ensuring that management resources are not spread too thin.
      • Execution: Implement and execute only the top 2-3 initiatives that align directly with the long-term strategic goals of the company, leaving distractions aside.

8. 8. • Application in Deal Thesis: KPIs are essential for tracking success. Include measurable KPIs in your thesis that will be used to monitor company progress and performance. Focus on financial, operational, and team-related metrics.
      • Execution: Set up a system to create and track KPIs weekly. This ensures that performance is consistently measured and corrective actions are taken when needed.

9. 9. • Application in Deal Thesis: Be prepared for unexpected data and insights. Incorporate regular performance reviews into your thesis and set the expectation that facts, even uncomfortable ones, will be used to guide strategy and recalibrate as needed.
      • Execution: Conduct monthly performance reviews and recalibrate strategies based on factual insights.

• Application in Deal Thesis: Focus on building a repeatable sales process rather than just driving top-line growth. Your thesis should include how the company’s sales engine will be optimized for predictability and scalability.
• Execution: Identify your target markets, optimize the sales funnel, and consistently track sales metrics to improve close rates.

11.The customer is always right

• Application in Deal Thesis: Collect and act on customer feedback to ensure the portfolio company adapts to customer needs. Highlight how customer satisfaction and retention will be measured and integrated into operational improvements.
• Execution: Conduct biannual customer feedback surveys and use the data to guide business strategy.

12.Brand and reputation are precious assets that take years to build and days to ruin

• Application in Deal Thesis: Incorporate Environmental, Social, and Governance (ESG) principles to protect and enhance the brand of the portfolio company. Your thesis should cover how these principles will be integrated into day-to-day operations.
• Execution: Implement ESG policies that support long-term brand value and customer trust.

1. 1. • Set clear goals for what you want to achieve at the conference.
      • Review past portfolio case studies and be ready to discuss how you’ve applied the Value Creation Engine in your own experience.
      • Refine your deal thesis to incorporate learnings from other successful PE-backed companies.

2. 2. • Network with PE firms and operating partners who have successfully implemented the Value Creation Engine principles.
      • Attend relevant sessions on operational excellence, talent management, and value creation strategies.
      • Engage with BMC mentors and speakers who have executed similar strategies in portfolio companies.

3. • Follow up with key contacts and mentors you met at the conference to continue building relationships.
   • Apply insights gained from BMC to refine your deal thesis and value creation plan for portfolio companies.
   • Continue leveraging the BMC network to stay informed on best practices and evolving PE strategies.