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Management Assessment and Due Diligence

In essence, the MA approach combines both qualitative and quantitative paradigms to ensure that its clients are fully informed not just about the existing situation and the factors influencing it with regards to personnel performance, but the potential for the future not only based on existing strategies and context but indications of what can change and in what direction to help the individual(s) to perform to and beyond expectation.

Key issues to be addressed are:

  • What are the strengths and weaknesses of the individual members of the management team?
  • How do the individual members compare with the wider population of managers?      
  • Is their performance likely to match their abilities – what will enable or inhibit them from giving their best?     
  • How do they function as a team?
  • If the deal goes ahead, what factors should be considered when planning how to manage the relationship with the existing management team?
  • To what extent, overall, does the management team meet the requirements of the business?  What steps could be taken to address any shortfalls?         
  • What people factors will improve the chances of success for the acquisition?

The value of MA’s independent approach to due diligence was demonstrated when, in 2003, Fortis Bank backed the successful management buy-out of Worth Global Style Network (a leading web information site for the fashion industry) from Nomura. 

The combination of market and management due diligence was not only able to analyse the viability of the business model, but also how best the controlling shareholders and board should go about managing the expansion of the business.  MA analysed the business again in 2004 to support a further injection of working capital.

The business continued to expand and in October 2005, WGSN was sold to Emap plc for £140 million.