“Understanding the effectiveness of leaders within [a target or portfolio company] is super important to achieving your value creation plan,” Drax Chief Technology Officer, Matthew Finnie says. 

During a recent Real Deals podcast, Finnie discussed why leadership due diligence matters and how it should be conducted by private equity buyers and their advisors. 

Bain’s most recent report on private equity cited that the calibre of the management team is the most important factor in success, and the reason for failure, just behind industry shifts. This is something that Finnie and his team at Drax have also encountered. 

In conversation with Real Deals, Finnie examined and explained why leadership diligence is important, why it is rising up the agenda for dealmakers, and how management teams should be assessed in order to achieve true value. 

Listen to the full conversation here