Executive Assessment-Acquisition

Company

Wind River Holdings - King of Prussia, PA

Business

Private management company that acquires and builds mid-market companies.

Objective

Determine whether the leadership team of a pre-school franchising company (Goddard Schools) could meet growth objectives without continued involvement of the owner and founder.

Program Summary

Delta conducted in-depth, individual interviews and assessments of Goddard’s (non-owner) President, VP Operations and 10 other managers to determine (1) individual effectiveness in terms of current and anticipated roles and challenges and (2) projected team and cultural effectiveness in light of post-acquisition objectives.

It was discovered that the President and VP Operations displayed the personal effectiveness to drive significant increases in profitable growth. The 10 other team members were found overall to be strong future contributors and in the right roles as well.

Team and cultural analysis indicated that: (1) the President had established himself as the focal point of leadership, (2) the team had established its own positive identity (independent of the owner) and was developing nicely and (3) the culture was quite productive and conducive to future success.

Thus, from a human capital standpoint, this acquisition was recommended as a very good investment. Additionally, developmental insights were provided to enable proactive talent management moving forward. In essence, Wind River’s principals were delighted to learn of the capability and depth in this senior management team.

Outcomes

The acquisition was completed in March, 2002. At the time, there were 119 franchise schools in 15 states. There are now (May, 2007) 243 franchise schools in 31 states. Goddard is considered best-in-class as a preschool organization. Return on investment and growth of EBITDA has been significant.