The Nine Dimensions of Governance Fit® represent the attributes that define high-performing sponsors who best enable portfolio company growth and success. Management feedback combined with Falcon’s extensive expertise recruiting PE-backed C-suite talent informed the creation of this model. Sponsors and executives can use this tool to evaluate optimal fit and identify ways to improve alignment.
What are The Nine Dimensions of Governance Fit®?
Investment Thesis: Having a clear, fact-based and actionable investment thesis throughout the hold period.
Value-Add: Bringing more to the table than just strategic oversight to drive value creation.
Transparency: Clear, unambiguous feedback and guidance related to personal performance, deal performance and exit timing.
Team Approach: Taking a highly collaborative and sincere approach to partnering with management.
Pragmatism: Engaging in a real-world manner rooted in understanding the current market and economic pressures.
Prioritization: Focusing time and resources on the initiatives that matter most.
Investment Skill: Conducting diligence for platforms and add-ons with a clear picture of asset quality. Knowing when to buy and when to sell.
Deal Team Quality: How well the deal team impacts strategic decision making throughout the hold period.
Board Construct: Presence of Outside Board Directors who add material value.
How Executives Value Each of the Nine Dimensions
Executive rankings of the Nine Dimensions have changed over time. The following chart shows how executives ranked the importance of each Dimension over the past two years.
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