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Author: Gerald O'Dwyer
Case Study: Mastering the First 100 Days post acquisition with BlackmoreConnects
Case Study: Mastering the First 100 Days post acquisition with BlackmoreConnects
Written By: Gerald O’Dwyer III
The PE Guru — Blackmore Partners, Inc | August 22, 2024
Introduction
As an executive with varying levels of private equity (PE) experience, you are on the lookout for your next portfolio company (portco) opportunity. Despite your background, you understand that relying on luck isn’t a strategy. Instead, you need a systematic approach to building your networks—spanning PE firms, owners, advisory roles, and customers. You’ve heard about BlackmoreConnects, a networking and educational group under Blackmore Partners, Inc., renowned for its methodical approach to private equity. This case study explores how engaging with BlackmoreConnects and leveraging its tools and frameworks can ensure a successful transition and execution in your first 100 days with a new PE investment.
Engaging with BlackmoreConnects
Having attended pre-conference workshops and started using tools like Cyndex and PitchBook, you’ve begun building a robust funnel for owners and PE firms. You’ve noticed significant engagement opportunities beyond your initial thesis. Now, you need a structured framework for the crucial first 100 days to ensure effective value creation and momentum.
The Importance of the First 100 Days
The initial 100 days post-acquisition set the trajectory for a new investment. Proper execution can build momentum and secure long-term success, while poor execution can result in lost opportunities and wasted time. Many PE professionals recognize this but often lack a repeatable blueprint to navigate this period effectively.
Common Pitfalls
- The “Set It and Forget It” Approach: Neglecting proactive involvement in the early days can lead to stagnation, especially if the acquired company isn’t performing exceptionally well.
- The “Death by Checklist” Approach: Focusing excessively on administrative tasks rather than value-generating activities can bog down management and hinder progress.
- The “Do No Harm” Approach: Avoiding necessary changes to avoid disrupting the status quo can lead to inaction and missed opportunities for growth.
The 5 S’s Framework for the First 100 Days
BlackmoreConnects employs the 5 S’s framework, emphasizing the importance of a well-planned approach to the First 100 Days:
- Sense of Urgency
- Objective: Initiate significant changes needed for value creation immediately post-closing.
- Actions:
- Develop a post-close action plan during due diligence.
- Identify and focus on quick wins to build momentum.
- Address talent and cultural issues swiftly to prevent regression.
- Best Practices:
- Recognize that employees are most receptive to change right after the deal closes.
- Implement changes with a clear and immediate action plan.
- Strong Relationship
- Objective: Build and maintain strong, trust-based relationships with management.
- Actions:
- Understand management’s motivations, goals, and work styles.
- Set clear expectations and communication plans.
- Regularly assess and manage relationship health.
- Best Practices:
- Engage in open dialogues about expectations and performance.
- Address and resolve conflicts proactively.
- Shared Understanding
- Objective: Align with management on the current state of the business.
- Actions:
- Conduct comprehensive discussions on the company’s current position, risks, and opportunities.
- Use data from due diligence to inform these discussions.
- Create a shared, objective view of the company’s status.
- Best Practices:
- Use diagnostic tools and market analysis to build a fact-based understanding.
- Ensure that management’s insights are integrated into the value creation plan.
- Same Direction
- Objective: Ensure that the board, management, and organization are aligned on goals and strategies.
- Actions:
- Define and communicate the vision and strategy.
- Establish near-term priorities and ensure alignment.
- Regularly review and adjust as necessary to maintain alignment.
- Best Practices:
- Address any misalignment issues promptly.
- Use clear communication to keep everyone moving towards common goals.
- Solid Team
- Objective: Ensure the right team is in place to execute the value creation plan.
- Actions:
- Align the organization’s design with the strategy and value creation plan.
- Assess current team members and identify gaps.
- Develop and implement a people plan that aligns with the strategic needs.
- Best Practices:
- Perform thorough assessments to match team members with the right roles.
- Make necessary adjustments by hiring or repositioning team members as needed.
Real-Life Example
Phil, a PE client, faced disappointment with a portfolio company exit due to a slow start and misalignment. His experience underscores the importance of the First 100 Days. Key lessons from his situation include:
- Alignment on Value Creation Initiatives: Importance of having a focused set of initiatives and the right team in place.
- Action on Due Diligence Findings: Timely addressing talent gaps and cultural issues.
- Avoiding Common Mistakes: Ensuring that the approach isn’t bogged down by administrative tasks or excessive caution.
Conclusion
By employing the 5 S’s framework from BlackmoreConnects, you can navigate the First 100 Days effectively. This approach emphasizes urgency, relationship-building, shared understanding, alignment, and having the right team—essential components for achieving successful outcomes in private equity investments.
Leveraging the BlackmoreConnects system will provide you with a systematic and repeatable approach to overcoming common pitfalls and setting a strong foundation for your next PE opportunity.
