I’m a car-guy. I read all the magazines and within my circle of family and friends, I’m the one they call for advice when looking for a new car. I enjoy researching the residual values of exotic cars. You might say I’m preparing for the deal… that special transaction that is looming out there, when I can pounce on the next purchase…
Often times, these exotic cars can be had at reasonable prices. One recent example I found was a used Aston Martin that retailed for $170,000 when new, but at four years old with only 15,000 miles on it, it could be had for as low as $70,000. I realize that $70,000 is a lot of money for a car, but for an Aston Martin, it feels like a bargain.
One essential tool in researching which specific car to buy is the CarFax Report. It details the life of the vehicle. All of the ownership records, service records, accident history, odometer reporting, recalls, technical service bulletins, every visit to the dealer, warranty information, you name it.
Would you even consider buying a $70,000 used car without CarFax Report? Yeah, me neither…
That’s when I realized why my clients need workforce analytics and insist on utilizing The Predictive Index when preparing for succession planning and exit strategies. Buyers need to look under the hood before purchasing, and workforce analytics provides the people data necessary to confirm that the transaction is a sound investment.
And it’s not just the Private Equity folks that require workforce analytics for their transactions. Currently, there are more privately owned companies preparing for sale than at any other time in history. We have baby-boomer business owners exiting at a rate we’ve never seen before. And the resulting transaction will be the most important financial transaction of their lives.
The Predictive Index (PI) can help smooth out that transaction and offer more value to potential buyers by providing the analytics needed to make a secure decision. Many of my clients purchase PI several years ahead of the transaction to add value and make the numbers look attractive. (If you’re going to get top dollar, it helps to fix things along the way and clean them up…)
They use PI to hire better, hire faster, save time, onboard faster, and retain top talent longer. They also map their company’s genome by establishing the benchmark needed to succeed in every position within their organization.
So, when they go to sell their company they can demonstrate to buyers that turnover is low and engagement is high. And if the buyer does experience turnover after the transaction, they have established the benchmark for what is required to be a top performer in every role in the company. And they have the solution to attract, hire, and retain top talent for that role.
Without it, it’s like trying to sell an expensive used car without a CarFax report… Good luck with that…