If the deal making process within investing is successful, the PEI becomes a shareholder of the company. That means another story, another activity starts, and the activity is the third in the managerial process and is named MM, where MM stands for managing and monitoring. It's a completely different story because if the decision to invest is made that means the PEI is one of the shareholders of the company, and the aim of the PEI now is completely different, since the PEI has to stay in the company, and has to support the company to generate more value, and especially, the PEI immediately starts looking for a strategy to exit the company to generate a capital gain. Managing and monitoring is very tough because if we come back to lesson number one of this course, we already know that when you decide to invest you have a huge problem of pricing and liquidity. Managing and monitoring means creating the right condition for a perfect exit from the company itself. Step by step, we have to understand everything. Managing and monitoring is an activity which is based on two very relevant pillars. On one hand, the private equity has got to support the company to generate value, and this support could be very different. It depends, for example, on a hands-on or hands-off approach from the PEI. It depends on the amount of shares it has. In any case, the PE has to have the company generate more value. On the other hand, the private equity has to protect the value the company generated. It seems simple, but actually it’s very difficult. Just to give an idea in a snapshot, managing and monitoring means the two players are married together. Yes, they are married, the company and the PEI. They want to create value so the goal is exactly the same, but their decisions could be completely different. In managing and monitoring, there is a dramatic problem of a divergence in opinion. I want to give you an example. Let's imagine a PEI decides to invest in a company. The business plan is fantastic. The management is fantastic. Everything really works, but let's imagine tomorrow morning the entrepreneur wants to make a completely different decision, wants to run and M&A in a different country. It's not written in the business plan, but the entrepreneur wants to do that and a conflict can start because the PEI wants the company to remain compliant to the business plan, and to make the decision to run an M&A means that, in the long run, probably, it could generate more value, but in the short and the medium term, this could affect the value created, and the PEI, as you already know, cannot remain forever in the company, but needs to exit. It's very difficult to stay together. Let's face the first area of activity, actions to support the company to generate more value. What kind of actions can the PEI put in place to sustain the company? We have a very long list, for example, board service. Yes, the PEI can support the company to manage its board in the proper way in many cases. Let's imagine in small and medium companies boards are not working well and one of the goals of the PEI is to try and get the company to design the proper governance mechanism. The second activity is related to recruiting management. Recruiting management means companies in many cases need new better management, and in many cases, a company, again, a small or medium one, or a startup doesn't have the capability to recruit management from outside. This is a perfect task for the PEI. Another activity is represented by the so-called performance review or performance system. In many cases, accountability, auditing, IT, information systems in a company don't work in the proper way, or in many cases, the company doesn't have this system. And again, the task for the PEI is to help the company buy or set up the right mechanisms helping the company itself generate more value. Another support is related to the management of relationships. In many cases, the PEI has a very wide network in terms of knowledge of the banking system, advisors, suppliers, and customers. A fundamental activity of the PEI is to give access to this huge network to the company, again, to multiply the value of the company. A last activity, but one that’s quite important, is represented by so-called mentoring. Mentoring means that the private equity has to be at the disposal of the entrepreneur twenty-four hours a day, seven days a week. What does that mean? It means everything, because the company and the PEI as I said before, got married. And it's normal that the expectation of the entrepreneur is that the PEI is able to support the decision of the entrepreneur, in any kind of moment. In many cases, decisions are related not only to the issues of the company, but also to very personal issues. But the job of a general partner, the job of the manager of an AMC, is to support the entrepreneur in every moment. That means it's much more than a contract. It's really a relationship where the PEI qualified its presence in terms of not only the financing, but also in term of advisory. And to be an advisor is a key factor of the success of the PEI himself or herself.