The Work: Transaction Support

Client Profile

Client Situation

The client bought an established retail food business with over 50 stores across multiple cities, injecting capital into the company, and recruiting a management team to improve performance through a complex series of real estate transactions.

When real estate prices unexpectedly fell, the financial results plummeted, resulting in near-total loss of capital.

Core question: given the situation, should the PE owner continue to back its management team and stay in the deal?

Diagnostic Finding

Using our proprietary Diagnostic Process, Ascentador was able to “get under the skin” of the organization and highlight specific risks against the backdrop of previously unknown micro- and macro-factors that had undermined business results.

These findings allowed the PE to recalculate the risk equation, take corrective action to restore capital to the business, and to double down on its confidence in the management team, grounded in data.

Ascentador Bespoke Solution

Given the critical nature of the decision facing our PE client concerning their massive investment in this business, Ascentador provided specific predictive insight, allowing the client to assess the risk of staying in the deal and supporting the current management team. The core attributes we examined included:

Ability

Including everything from leadership to core functional skills as well as developmental needs.

Aspiration

Focusing on each executive’s desire to advance and influence his/her “world of work”, including insight about the importance of financial rewards and other “invisible” motivators.

Engagement

Providing insight into the beliefs of the executive about the company, his/her commitment to stay, and willingness to contribute above and beyond the call of duty.

Team Complementarity

Revealing how individual members of the team “activate” each other for enhanced individual productivity and achievement of business outcomes.