How can the management team/non executives maximise the value of the business and how do I find them?
In a couple of words "with great difficulty"!
Finding the right management team (or part thereof) or indeed appointing exceptional non-executive directors is not as easy as putting a round peg in a round hole. The techniques employed to search and select missing parts of the management team should stretch further than "recommended by a friend" or the local golf club! Bear in mind that the management team will likely be working closely with the founder to engineer a sale or management buyout (MBO) for at least a year and thus "personality fit" is often as crucial as technical expertise.
In the case of MBO/BIMBO [buy-in management buyout] situations, we use various tried and tested methods to attract top talent and this includes extensive networking through the professional advisory, private equity and banking fraternity whereby we are able track and validate the previous successes and technical aptitude of management teams/individuals. "Candidate due diligence" is often just as important as formal due diligence as the impact of a flawed management team can be long lasting and ultimately make a business difficult to sell.
Non-executive directors may add value to the process of selling a business as they are widely accepted by potential acquirers/external bodies as custodians of corporate governance. Where some businesses fail in this respect is they forget that a non-executive director (NXD or NED) is a member of the board of directors of a company but not a part of the "executive management team".
S/he is NOT an employee of the company or affiliated with it in any other way; they are there to add value by commenting on strategy, risk, performance and people. They should provide independent views on resources, appointments and standards of conduct. Again, they are not involved in the day to day running of business but monitor the executive activity and contribute to the development of strategy.
