Value creation for private equity

Private equity firms face a compressed timeline to identify and implement strategies that boost their portfolio companies’ profits and returns, and ultimately create sufficient value for a successful exit. Those that get out of the blocks fast are in the best position to do so.

CohnReznick’s Value Creation team has the experience, industry insight, and deep bench of specialists needed to help you optimize your value creation plan and bring it to life – faster, with greater impact. From the diligence process and through the hold period, we help PE firms and their portfolio companies identify, prioritize and then sprint to a series of early wins. Read on for an overview of the value creation “sprints” we can help you put into action, or contact our team to start building and executing your path to value creation.

Pricing Strategies

Design competitive pricing strategies that increase margins and unit sales.

Salesforce Optimization

Assess your salesforce systems, incentive programs, and processes, then design and implement a sales effectiveness program targeting the areas that have the greatest impact on value.

Customer Preferences

Build programs that engage, retain, and attract customers in real time.

Environmental, Social, and Governance (ESG)

Understand your ESG value proposition and build a roadmap to match stakeholder expectations.

Working Capital

Increase visibility of the cash conversion cycle across the organization.

Supply Chain

Create and strengthen policies and procedures to maintain a more resilient, sustainable supply chain.

Sourcing for Growth

Professionalize your sourcing and procurement process to optimize costs, decrease disruptions, and support growth.

Technology Solutions

Deploy solutions that empower better management, sales, and financial controls.

Analytics

Design and implement systems that help inform decisions and satisfy reporting requirements.

Management Augmentation

Identify and fill gaps in the portfolio company management team with industry-specific and situation-tested professionals to help give lift-off to the value creation plan.

Outsourced Operating Partner

Engage specialized outside providers to expand bandwidth and accelerate the execution of projects and strategies.

Finance & Accounting

Identify and reduce inefficiencies, and build teams, processes, and technology capable of contributing to growth.

Culture & DEIB

Identify and communicate priorities for merging PE and portfolio company cultures to create an environment where everyone is heard, valued, and supported.

Mergers & Acquisitions

Build and implement an M&A growth initiative to stimulate add-ons and streamline integration.

Healthcare network

Increased cash runway from 8 weeks to 8 months for a $235 million business network by restructuring operations and monetizing unencumbered or partially encumbered assets. Increased EBITDA from (-$12M) to $7M in 7 months. Led negotiations for a successful sale to a strategic buyer.

Energy distribution company

Increased management visibility and accelerated decision-making with improved financial reporting systems and dashboards. Managed working capital and eliminated overstaffing. Professionalized sourcing and procurement practices, and decreased customer attrition through customer segmentation and pricing improvements, both of which contributed to increased margins. Ultimately drove $4.3 million of EBITDA improvements on 19% less volume within 18 months.

Manufacturing company

Assessed operational and manufacturing processes, technology, and organizational structure impacting inventory and global supply chain performance. Identified and implemented production line improvements to achieve a 50% reduction in cycle time. Improved working capital tied up in stock. At one factory, saved 30% on floor space while increasing production by 20%.

Construction supplier

Introduced high-margin product line as a point of differentiation. Launched customer segment-led product management strategy. Improved sourcing & procurement practices to consolidate suppliers and reduce inventory by 50%. Implemented ERP system to support growth, and realized greater-than-4x ROI in Year 1. Ultimately achieved 36% profit improvement. Reduced sourcing costs by 20% through supplier rationalization initiative. Cut production errors by 80%.

Casual dining restaurant company

Supported $300 million add-on acquisition. Completed buy-side due diligence. Navigated management through accounting, technical accounting, and valuation complexities. Established a well-controlled, streamlined back-office function for the combined entity. Shaved days off the accounting process and provided a single source of financial reporting.

Industrial equipment and services company

Defined an 18-month integration plan to integrate a $2 billion competitor into a $3 billion PE-owned company, by defining, prioritizing, and monitoring key business integration requirements. Analyzed revenue, customer, and SG&A cost data. Deployed a shared service model for billing and payroll. Documented finance and accounting processes. Standardized management reporting requirements.