FMG Leading

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How GPs Can De-Risk Investments with Human Capital Due Diligence

Originally published in Mergers & Acquisitions, May 2021

With the Covid-19 vaccine rollout accelerating at an increasingly rapid pace, private equity firms are eagerly anticipating a return to normalcy, including regular, in-person meetings with current and prospective leaders at acquisition targets. With deal activity booming and firms looking to deploy their accumulated dry powder, GPs cannot afford to under-club due diligence while we wait to reach herd immunity.

Dr. Matt Brubaker

Firms would be wise to bolster their human capital due diligence to compensate for the current environment’s lack of real, consistent human engagement. They must add additional tools and processes to their standard playbook to ensure social distancing requirements don’t leave unchecked human capital risks in investments that ultimately impact their pace of value creation.

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About the Author

Dr. Matt Brubaker is the CEO of human capital advisory firm FMG Leading. An expert in sustainable transformation, his client work focuses on enterprise-wide change initiatives, C-Level development, and building high-performing, strategically-aligned executive teams. A recognized thought leader on the subject of human capital strategy, Dr. Brubaker’s work has been published in Harvard Business Review, Forbes, Chief Executive Magazine, Fast Company, and Private Equity International.