You are preparing your first board presentation
Example situation
Your first board presentation concerns a proposal to acquire a smaller company. Its revenue is growing; the proposed price depends on a forecast you have yet to check.
Our recommendation
A board exists to govern the business, not operate it. Ensure you provide them the right information prior to the meeting to enable an effective discussion during it. Prepare evidence and alternatives, and state what remains uncertain. State your recommendation, resource requirements, and risks.
If you are the executive
Confirm the purpose with your CEO, or the chair if you are the CEO. For an acquisition proposal, establish what approval is needed and when the business needs it.
Verify the company's financial results against their sources and the forecast with the managers who prepared it. Explain the assumptions used to justify the price and how a lower forecast would change your offer. Send balanced information in advance so directors can examine results, risks, and alternatives.
Rehearse the reasoning as well as the presentation. “We recommend acquiring this company based on its verified results. The price assumes further revenue growth; this is how our offer would change if that growth does not occur.”
For an unanswered question, state what you know, what you will check, and when you will respond. When someone identifies a material error, correct the information for everyone using it and credit the check.
Record the decision and its conditions. Explain the implications to responsible managers and update the acquisition plan. Review whether the acquisition produced the business result that justified the price.
Questions that come up
Should I seek acquisition approval before the forecast is verified?
Check the forecast’s source, assumptions, and range before asking the board to approve the proposed price. If a decision is needed sooner, specify which checks remain and make the commitment conditional on their results. State withdrawal costs and what findings would change the offer. Confirm who can approve those changes.
What if I do not know the answer?
If missing information could change the decision, say so. Send the answer to those who need it and correct earlier information it changes.
The responsibility behind this situation
New Executive Guide Face the board with evidenceLast Updated: