Our Why
Know Who You're Investing In Before You Close
PE firms apply rigorous diligence to financials and operations. Most management teams get a couple of dinners and a gut check. Lodestone gives you the same rigor on people.
The Stakes
The Most Expensive Surprises Are People Surprises
You model the financials obsessively. The management team? That's usually a gut check and some reference calls. Lodestone changes that equation.
~70%
Of PE firms replace CEOs within the hold period — and the majority of those decisions were unplanned at acquisition. That's avoidable risk.
25–30%
Leadership team quality drives 25–30% of market valuation, according to HBR research. It's not a soft factor.
5 days
Our fastest due diligence turnaround. Deal timelines don't wait, and we don't make them.
Our Process
Five Steps. One Complete Picture.
Every HC diligence engagement follows a structured process — calibrated to your investment thesis, not to a generic leadership framework.
Calibration
We start by understanding your investment thesis for the asset. What does this management team need to accomplish? What strengths are table-stakes vs. differentiating? What are the known risks? This conversation shapes everything downstream.
Executive Success Profile
We define what "great" looks like in each key role — mapped to your specific business imperatives, not generic leadership competencies. This becomes the benchmark we assess against.
Executive Team Assessment
Individual evaluation of key leaders using the appropriate methods for the tier you select — from structured interviews to psychometric assessments and business simulation.
HR & People Systems Review
Capabilities, gaps, and immediate needs across selection, HRIS, performance management, total rewards, and compliance. Often the area where the most expensive surprises are hiding.
Organizational Health View
Key factors of workforce engagement — retention risk, cultural health indicators, and early signals of talent flight risk that won't show up in the financials until they already have.
Engagement Tiers
Two Ways to Engage
Diligence Lite
Fast signal for active deals.
When timelines are compressed, you still need more than instinct.
Includes:
Outcome: A clear, objective read on leadership capability and execution risk — so you can underwrite the deal with eyes open.
Full-Scale Diligence
When leadership is the deal risk — or the value driver.
Everything in Diligence Lite, plus direct evidence of how leaders perform under real pressure.
Adds:
Outcome: Behavioral proof of who can scale, where execution will break, and what must change to deliver the value creation plan.
What You Get
Every Engagement Delivers
Concrete outputs from every engagement, regardless of tier.
In Practice
How This Changes a Deal
A deal team engaged Lodestone to evaluate a prospective HR/engagement technology company — unusual in that we were assessing both the management team and the product itself. Within 10 days, we ran a product demo, audited HR processes, and completed backchannel research through our professional network. The analysis led to a modified offer on the asset and brought us into the firm's next deal.
Why Lodestone
Built for Deal Timelines. Not Accommodating Them.
Most assessment firms weren't designed for private equity. Their timelines don't fit. Their reports don't answer deal questions. Lodestone is different by design.
| Lodestone |
|---|
|
Organizational psychologists trained in workplace science |
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Multi-method assessment, remote-capable |
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Targeted, business-centric reports |
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Senior consultants only |
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Full-lifecycle services across the hold period |
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Economical pricing |
| Commonly Used Firms |
|---|
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Clinical psychologists applying therapy models to the workplace |
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Require many hours in person |
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Narrative opinion reports |
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Junior staff supervised by “big names” |
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Focus only on diligence, search, or coaching |
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Substantial fees |
After Diligence: The Full Lodestone Lifecycle
Post-Close Bundle
tEamBITDA™
Talent Assessment
Executive Assessment
Team Effectiveness
Post-Close Team Alignment
Leadership Development
Individual Executive Development
Group Development
Group Leadership Development
HR Optimization
Human Capital Process Optimization
Culture
Culture & Engagement
Talk to Us About Your Next Deal
We work on deal timelines. Our fastest turnaround is 5 days.