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Execution of the 100 Day Plan
Execution of the 100 Day Plan
3 Things to Prepare for During a M&A Transaction
By: Dan Hafetz, Managing Director – Private Equity – Interim Resources at StevenDouglas
Given the pace at which organizations are growing and acquiring bolt-on companies, most private equity firms have a process to assist businesses through this time of change, their lack of knowledge, and the overall intrusion of a M&A transaction.
During my time working with private equity portfolio companies, it has become crystal clear that each firm, although they may call it something different, has a “100 Day Plan” that they enact upon taking over in a M&A that every business should understand and be prepared for.
The purpose of the PE firm’s 100 Day Plan is to create goals and develop actions that will provide achievable “wins” in the short run as they begin the process of transforming the company for future growth. Simultaneously, they use this transition period to start to formulate a long-term strategy to get them to whatever the vision or goal is for the company.
Actions You Should Expect During the Execution of A 100 Day Plan:
- Private Equity sponsors have an undeniable thirst for data, and this begins day one after taking over a company. They will seek to identify and receive reporting on all critical information. This action enables the business to adapt to the new normal and ensure the metrics gathered and needed for decision-making is reliable, repeatable, and easy to analyze.
- Much of the initial heavy lifting is aimed at building essential data sets and reporting models, including defining the cash flow model, the thirteen-week cash flow forecast, enacting management dashboards, tracking KPIs, and various other data sets specific to the operational and financial livelihood of the business.
- The business will need to fill critical gaps immediately that help create a smooth transition aligned with short- and long-term goals. Finding the right talent is necessary since the transition period that follows a transaction is typically time-sensitive, filled with uncertainty, and has the potential to expose the business to some natural risk and challenges.
These businesses often need experienced professionals to help them execute on the initiatives laid out in the 100-day plan. For decades, I’ve worked directly and advised various PE firms, becoming well-versed in their process and expectations, as well as guiding many businesses impacted by a M&A transaction. Because of all the intricacies of a M&A transaction, I recommend bringing in qualified interim professionals to assist these portfolio companies or corporations operate and assume some of the financial functions on an interim basis while metrics and strategies are being determined.
Mitigating uncertainty, building confidence, and activating 100-day plans with metrics and diplomacy is all necessary toward getting off on the right foot and moving forward with efficiency and purpose. Navigating through this process creates a high-touch and specialized approach that improves decisions and alleviates risk in the real world that your business operates in.
To learn more about enacting a 100 Day Plan with your business, reach out to me anytime with questions or concerns you may have filling gaps immediately or finding the right talent for the transition. Contact Dan Hafetz, Managing Director – Private Equity – Interim Resources by email at DHafetz@StevenDouglas.com, or speak with him directly at 954-385-8595.