Business management team
Your business management team profile is critical since private equity firms invest in people who have run or who are likely to run successful operations. Potential investors will look closely at you and the members of your management team.
This section of the plan should introduce the management team and what you all bring to the business. Include your experience, and success, in running businesses before and how you have learned from not so successful businesses. You need to demonstrate that the company has the quality of management to be able to turn the business plan into reality.
The senior management team ideally should be experienced in complementary areas, such as management strategy, finance and marketing and their roles should be specified. The special abilities each member brings to the venture should be explained. This is particularly the case with technology companies where it will be the combination of technological and business skills that will be important to the backers.
If some members have particular flair and dynamism, this needs to be balanced by those who can ensure this occurs in a controlled environment. A concise curriculum vitae should be included for each team member, highlighting their previous track records in running, or being involved with successful businesses.
• Identify the current and potential skills’ gaps and explain how you aim to fill them. Private equity firms will sometimes assist in locating experienced managers where an important post is unfilled provided they are convinced about the other aspects of your plan.
• Explain what controls and performance measures exist for management, employees and others.
• List your auditors and other advisers.
• The appointment of a non-executive director (NED) should be seriously considered. Many surveys have shown that good NEDs add significant value to the companies with which they are involved.
Many private equity firms at the time of their investment will wish to appoint one of their own executives or an independent expert to your board as an NED.
Most private equity executives have previously worked in industry or in finance and all will have a wide experience of companies going through a rapid period of growth and development.
Business management team profile should be included in the business plan.