Value Creation in Private Equity Portfolios
Value creation in Private Equity portfolios has become increasingly challenging. There have been many, well documented bumps in the road faced by businesses over the last few years. Many Private Equity companies have had to face into these alongside their portfolio companies. The challenging economic climate in the UK has led many PE firms to focus more time and energy on supporting their existing portfolio companies, as opposed to pursuing new deals.
Value creation is being driven by many business areas, including ESG. Operational improvements continue to drive enhanced returns. Within the PE firms the squeeze on talent continues to limit investment decisions, adding an additional layer of complexity.
Ebit work with several PE firms and their portfolio companies, reviewing and implementing rigorous procurement projects, practices and strategies. Whilst value creation remains the number one driver in many cases, the approach to this is becoming more intelligent.
Streamlining supply chains, improving procurement processes, negotiating better terms and reducing costs all form key planks to this strategy. When this is supported by proactively identifying , investigating and analysing cross portfolio opportunities the gain can be significantly greater. Technology helps to identify opportunities and manage suppliers, risk and sustainability, but the procurement expertise to pull these complex projects together remains very much in the human realm.
If you are looking to uncover opportunities for value creation within your business or portfolio, contact us to understand how we work. With experience across multiple industries and portfolios, driving savings across all indirect categories and an average ROI of 5:1 we embody Intelligent Procurement
Sharing Procurement Expertise
Here at Ebit we have worked on multiple engagements with PE backed companies. We assist them as they continue to grow and add value to their backers portfolio’s. With flexible engagement models to suit requirements , we can;
- Identifying opportunities to cut costs
- Improve service offerings
- Provide strategic roadmaps and actionable plans
- Engage stakeholders
- Develop procurement skills and
- Implement software and tools
Contact us as we would love to have the opportunity to learn about your company or portfolio and understand how we can work with you as you grow.