We help investors competently manage the sources of value-destroying conflict that are inherent in every value-creation strategy.
Conflict is inevitable whenever people work together. And nowhere is this axiom more true than in the private equity industry where short hold times and aggressive value-creation strategies create fertile ground for conflict. Because sources of conflict are inherent in every value-creation strategy, firms who competently manage conflict have a performance edge over those that do not.
We help firms build value in the companies they invest by skillfully managing conflict over the life of a deal.
During diligence and in the early days of a deal before a foundation of trust has solidified, we help investors anticipate and proactively manage knowable sources of conflict. Then, when the going inevitably gets tough, we work with investors to develop the skills to help management teams, rather than make things worse. And, when personalities and management styles collide creating an impasse, we help firms react swiftly to protect value.
Our comprehensive approach to conflict management is informed by decades of scientific research and enables us to meet our clients' needs to effectively manage conflict across the life of a deal, from defusing common sources of conflict on day one to constraining the impact of escalating conflict at day one hundred.
CASE STUDY: WEB OF CONFLICT
Six months into the deal with mid-market PE firm Stony Creek, growth at Arteyx, a Chicago-based provider of shipping solutions in the cold chain logistics market, was slowing to a crawl. Initiatives to accelerate adoption of its products and value-added services were flagging. Tensions were high and a dense web of conflict had woven around the Board and Arteyx's management team, constraining their ability to work together.