Peggy, Ted and Alex meet for the postmortem
Updated: Nov 16, 2020
The below is part two of a three part blog on how Vision Capital transformed its M&A processes. The story and characters in this three part blog are fictitious.
Ted was pleased to see that Peggy had roped in Helen Darwin to the postmortem meeting. Helen was well known within Vision Capital. She was a doer and once Helen got tasked with something, it got done.
The meeting was productive. Alex, Ted and Peggy had come prepared. There was a frank and open exchange of opinions. Peggy sent an email with notes to the meeting. Helen was tasked with ownership of next steps.
Subject: Notes to meeting and next steps
Ted, Alex, Helen,
Notes to our meeting and agreed next steps.
We agreed that the weaknesses in our processes start at deal execution and compound all the way to exit
There is a lack of standardisation in the way we execute deals - i.e., there is no standard set of deliverables that get generated for each deal; this makes it difficult to join the dots or figure what happened
The way we track and monitor our structures / portfolios post-deal is haphazard and outside our direct control. We rely on processes at the portfolio management level and our corporate service providers. We can’t tell if things are happening as required.
There is hardly a deal that goes by where we can pull the information needed for a transaction in a painless manner. Something or the other always goes missing or takes longer than normal to find.
It is common to observe price reductions or diligence complications that have arisen due to procedural lapses.
We agree that all of the above issues are connected - i.e., if you start well (deal execution), you should be able to manage well (holding period), and exit better.
Next steps: Helen will review all Fund IV deals and prepare a memo with her recommendations for a better way.