Reiber Group is a talent management consultancy that partners with executives and investors to make the best decisions about hiring, developing, and investing in talent. The stakes are high when bringing a new executive on board, promoting talent into senior positions, or making a private equity investment. Reiber Group’s experienced business psychologists focus on talent assessment and leadership coaching to minimize risk. When it comes to high-stakes evaluation of talent, executive decision-makers and investors trust Reiber Group to reduce costly mis-hires, to support the right promotional and talent development decisions, and to back and build the right management teams.
Founded in Detroit over 15 years ago, Reiber Group works globally and serves leading private equity firms and their portfolio companies, as well as a broad array of Fortune 1000 and family-led firms, helping them drive their talent strategy and performance to the next level to maximize organizational alignment and value.
In this Special feature report, Finance Monthly interviews the Reiber Group’s Managing Partners – Joan and Andor Reiber who introduce us to the world of Management Due Diligence and warn us about the most common challenges that arise in the process.
In the increasingly competitive financial services and private equity industries, how important is for businesses to have professional advice on the management teams that they are partnering with, so that they can make an informed decision?
Gaining a deeper level of insight about management teams with whom private equity and financial investors are partnering can accelerate relationship-building between the parties, and to execute key strategic priorities. Understanding people’s strengths, motives, and areas in which the team needs support provides a foundation for executing the investment thesis, as well as creates a stronger foundation for healthy dialogue, decision-making, and conditions that lead to a successful investment and eventual exit.
What are the critical factors that businesses need to consider pre-management due diligence?
Critical factors that investors with whom we partner consistently inquire about concern both individual strengths, development gaps and motives, as well as how the management team functions normally, and critically, when the team is working under high pressure or stress. Investors also inquire about how individuals and teams communicate, team dynamics and tensions, and their expectations of the new investor group, which Reiber Group assesses in their due diligence work.
Ultimately, the investors want to know how this management team and individuals that comprise the team operate, what supports or additions to the team are required, the best way to structure the organization moving forward, and what will lead to a successful partnership during the course of the investment period.
What would you say are the most common complexities that you are likely to face in the management due diligence process?
There are typically multiple and concurrent demands on the management team during the due diligence period. Reiber Group works with both the investors and management team in a flexible manner to conduct management assessments, and use the opportunity and feedback from the assessment work as a developmental outcome for management’s efforts. We often hear from management team members that they enjoy the assessment experience, as it provides an opportunity to validate strengths as well as identify and hone in on ways to improve personally, and as a team.
What assessment and development solutions does your company offer in relation to improving team and organization performance?
Hire: Reiber Group offers assessment solutions that help with understanding strengths, weaknesses, and fit of executive-level candidates for key roles in the organization.
Develop: Reiber Group provides developmental assessments for existing talent, which help to identify and validate managers ready for promotion opportunities, or whom the company feels is a key talent in whom to invest.
Align: We work with new executives to support their assimilation into a new work situation, work with senior teams to drive alignment, and provide executive coaching to accelerate development efforts.