How can you evaluate the performance of a deal execution team?

1 Scope and objectives

The first step to evaluate a deal execution team is to review the scope and objectives of the transaction and how well they were defined and communicated. A clear and realistic scope and objectives can help the team align their efforts, prioritize their tasks, and manage their expectations. You can check if the team had a clear understanding of the deal rationale, value drivers, risks, and alternatives, and if they communicated them effectively to the relevant stakeholders.

2 Planning and execution

The next step is to examine the planning and execution of the deal process and how well the team managed the timeline, budget, resources, and deliverables. A sound planning and execution can help the team avoid delays, errors, and inefficiencies, and ensure the quality and consistency of the deal output. You can check if the team had a detailed and flexible plan that covered all the key phases and milestones of the deal, and if they executed it according to the plan or adapted to any changes or challenges.

3 Due diligence and valuation

Another important aspect to evaluate is the due diligence and valuation of the deal target and how well the team performed the analysis and verification of the relevant information. A thorough and accurate due diligence and valuation can help the team assess the feasibility and attractiveness of the deal, and support the negotiation and decision making. You can check if the team conducted a comprehensive and rigorous due diligence that covered all the financial, operational, legal, and strategic aspects of the target, and if they used appropriate and consistent valuation methods and assumptions.

4 Negotiation and communication

The final aspect to consider is the negotiation and communication of the deal terms and conditions and how well the team interacted with the other parties and stakeholders. A effective and professional negotiation and communication can help the team achieve the desired deal outcome and maintain good relationships. You can check if the team had a clear and coherent negotiation strategy that reflected the deal objectives and value drivers, and if they communicated it persuasively and respectfully to the other parties and stakeholders.

Evaluating the performance of a deal execution team can help you identify the strengths and weaknesses of the team, provide constructive feedback, and implement best practices for future transactions. By considering these four key aspects, you can gain a comprehensive and balanced view of how well the team delivered the deal.