A management buyout necessitates a better technology strategy
A Management Buyout typically means adapting your tech strategy to a faster pace. Learn more from these MBO case studies.
Your firm has successfully navigated the tricky waters of a management buyout. Congratulations! But this isn’t the time to celebrate. Now the hard work begins, and you need to adapt your tech strategy accordingly. IT Due Diligence
What do you need to do first?
The short answer is to be ready to ramp up the pace and potentially change strategy.
In previous articles, we discussed whether you’re ready for the scaling challenges ahead and to consider the type of investor or buyer you’ll be working with. Now let’s get ahead of the tech strategy and pacing concerns that may be relevant to you post-deal.
Being ready for an uplift in ‘pace’ of technology strategy following a management buyout is often recommended during technology due diligence.
Because we notice many teams do not adapt well or quickly after a deal. We’d like them to maximise their returns for themselves and their investors.
This article focuses on critical areas of scale when investors and tech leaders discuss pre- and post-deal. We are privy to this information from running technology due diligence projects and being on both sides of the table.
If you are interested in the nuts and bolts of scaling, I recommend either of these two books. Reid Hoffman’s Masters of Scale or Verne Harnish’s Scaling Up book.
I believe that if a deep enough understanding of the tech strategy, there are fewer surprises. This will help the long-term ‘marriage’ between the portfolio business and the investor.
As every company and deal is unique, there are challenges generalising this topic.
So I will present three case studies covering early-stage, mid-stage and established companies – the first two being management buyout examples.
This may help you see some of the differences and maybe align with your current situation. I have, of course, changed some of the details regarding the businesses mentioned below:
Regardless of the size of the business and technology maturity, many areas can be re-vitalised to help increase productivity.
This will ultimately make the team more valuable to the business.
A growth investment or management buyout is an excellent opportunity to review your technology team’s current strategy, pace and efficiency.
And if you don’t get ahead of this, the investors will.
For More Info: Tech DD