Innovative Management Due Diligence Product for Private Equity Launched by Perth Leadership Institute and Saddle Creek

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Behavioral Proforma™ Approach is a New Way to Predict Private Equity Portfolio Profitability and Valuation

Dr. E. Ted Prince, Founder and CEO

Private equity needs to innovate to make its returns attractive - and we have the answer!

New ways of conducting management due diligence are vital to increasing the profitability and valuation of private equity-backed companies. Saddle Creek, a leading M&A advisory firm and The Perth Leadership Institute, the industry thought leader in business acumen assessment, today announced that they are launching a new management due diligence (MDD) product targeted at private equity companies.

This path-breaking product uses unique psychometric methods to predict profitability and valuation of private equity portfolio companies based on proprietary approaches derived from behavioral economics and behavioral finance, which are utilized to produce its new and innovative Behavioral Proforma™. This predicts the future income statement of a company based on behavioral data from the CEO and management team.

Perth Leadership Institute has been recognized as one of the world’s leading companies in this new area of behavioral finance and leadership. Excellence magazine has rated Perth Leadership Institute in the top 15 Small-to-Midsize Leadership Partners and Providers ranked as part of its annual Leadership 500 list. The list can be seen at this location.

According to John Sipala, Managing Director of Saddle Creek, “There is increasing pressure for alternative investment approaches to increase their return so that they are clearly superior to traditional investment approaches. There is a pressing need for private equity companies to find new ways of predicting profitability and valuation of their investment targets and their existing portfolio companies. The Behavioral Proforma™ approach pioneered by the Perth Leadership Institute is totally different from anything else on the market and offers a new way for private equity to achieve the superior returns being demanded of them by their general partners. Saddle Creek is proud to be able to launch this exciting new product.”

According to Dr. E. Ted Prince, Founder and CEO of the Institute, “Perth Leadership Institute has been at the forefront of leadership thinking and programs in the US and globally. We are still busy pushing the frontiers of the new disciplines of behavioral economics and finance to provide practical results with real-world application in the areas of investment and finance. The results can also be seen in our most recent Behavioral Proforma™ programs for predicting the impact on income statements of CEOs and management teams.”

The Perth Leadership Institute has developed innovative approaches to leadership styles and financial impacts based on its research into business acumen and behavioral finance. These form part of its business acumen assessment and development programs for managers and executives. It has developed business acumen assessment instruments, such as the Financial Outcome Assessment® used by executives and managers to increase their financial and valuation impact.

Saddle Creek, LLC was founded in 2002 by John Sipala with the mission to deliver high quality corporate advisory services to mid-market businesses. It works particularly with private equity companies on both M&A and in a corporate advisory role focusing on management team selection, succession and M&A integration. It brings a comprehensive perspective to its engagements through a blend of senior management operating experience and consulting and transaction expertise. Saddle Creek and its associates have completed numerous acquisitions, mergers, divestitures, recapitalizations and restructurings with companies ranging in revenues from $2 million to $100 million.

The Perth Leadership Institute was founded in 2002 in Gainesville, Florida, by Dr. E. Ted Prince to carry out research into the linkages between behavior and company financial outcomes. Its programs are targeted at executives and managers and portfolio managers and are used to predict and improve financial performance of organizations.

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John Sipala

Dr. E. Ted Prince
Perth Leadership Institute

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