Reasons That Corporate Executive Principals Fail Management Reviews:
Our ’Guide to Passing Management Review” lists the most common and sometimes obscure reasons why management teams fail to pass Management Reviews, along with practical remedies that will help you to avoid the most common mistakes. All of the reasons used as examples are based upon real life episodes experienced by every veteran venture capitalist and investment banker who regularly conducts due diligence sessions.
A Management Review is the most critical part of the due diligence process which can make or break a deal more readily than any other discovery in the process. In general, Management Reviews are a series of direct examinations conducted by professional investors to make an evaluation of your management team based upon answers you give, and statements you make. It is an assessment of intelligence, professional competence, and other factors which are much more difficult to ascertain, such as psychological disposition, attitude, character, chemistry and so on. You and your co-principals are evaluated as individuals and as a group. Provided you survive the paperwork part of the due diligence investigation to begin with, this process starts in the initial meeting and continues on in subsequent meetings.
Your aim in management reviews is to impress upon the interviewers your genuine character as a highly focused and committed professional manager, who can be trusted as a responsible custodian for the care taking of the corporation with the common goal of building and maintaining shareholder value.
Hopefully this guide will provide the insight and perspective to help you better understand and appreciate the management review process conducted by venture capitalists, investment bankers and other professional financiers.
It is advised that you use this insiders’ perspective along with the Funding Roadmap™ Business Plan and Due Diligence Accelerator to complete and sharpen your presentation, and be better prepared for the scrutiny of the Management Review.
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