Our Blog Why Bringing Ombuds to Organic Growth Private Equity is Crucial

Why Bringing Ombuds to Organic Growth Private Equity is Crucial

12/08/2023


Three reasons why bringing Ombuds programs to middle market private equity firms that favor organic growth is critical right now: 

 Post-merger integration, organic growth and Boomers.

Cultural Fit

Up to 90% of mergers fail and many because of cultural incompatibility.  Private markets struggle with how to assess and manage culture. Post merger, Ombuds encourage collaboration, communication and understanding by assisting both the acquirer team and target team to recognize the value of the other team and create a new culture that honors the best of both worlds.

Ombuds expand the due diligence scope during sourcing.  While assessments and online data from Blind or Glassdoor is useful, the insights and perspectives gleaned during a confidential conversation with an Ombuds are far more valueable. Why? The Ombuds can dig deeper and ask those clarifying questions that reveal more.

Organic Growth

Typically, the strategy  to increase organic growth is to subtract things to reduce expenses. But what if adding something could lead to new and different ways to serve clients without adding more expense?  Employees are the ones closest to the customers and their needs. They have loads of great ideas, but might not feel comfortable sharing or making a costly mistake.

Transform your culture into one where creativity is rewarded and mistakes are considered non-fatal lessons. You'll sell more to current clients and attract new ones when you free up employees to be creative. Your Ombuds knows ADR techniques that make it easier to generate new ideas and skills to manage the conflicts that may arise.

Market Opportunities

Did you know that 66% of all businesses with employees are owned by Boomers? Or that 70% of boomers are planning to sell their businesses in the next 10 years?

That’s a huge opportunity for economic growth.  Boomers want to retire and monetize the time, effort and money they poured into their businesses. But they want to do it in a way that takes care of their employees and presents opportunities for mentorship after the transition. Because the exit will likely be the first time a boomer owner deals with private equity it's likely there will be misunderstands and conflicts. Your Ombuds can help manage the emotional side of things. Working with an Ombuds ensures that your deals moves faster without getting bogged down by interpersonal issues.

Want to explore the specifics on how an Ombuds is a benefit you, book a call and we'll talk.


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