Generating Greater Return on Investment for Private Equity Firms

Supply Chain Edge Operations Due Diligence and Performance Improvement Assessment

Business conditions for private equity (PE) firms are quite different from those of “pre-Lehman,” with reduced availability of funds, more stringent borrowing terms and equity requirements, and challenging restructuring of term loans coming due. Thus, it is critical for PE holdings to take steps to not only conduct deeper due diligence on acquisition targets’ operations to gain a realistic picture of the targets’ present state and potential, but also to identify and enact changes in existing portfolio companies’ supply chains that dramatically improve these organizations’ financial performance.

Supply Chain Edge can help on both fronts. Our advisors are veteran supply chain professionals with decades of “in the trenches” experience at companies across varied industries. We work with PE firms to quickly assess current operations, identify and prioritize improvement opportunities and implement methods for sustainable performance improvement—all of which leads to greater EBITDA.

Conducting Rigorous Operations Due Diligence

Supply Chain Edge brings deep operational expertise and a proven assessment process to the due diligence investigation of a target acquisition. SCE quickly mobilizes to conduct an in-depth review of a target acquisition’s key operations, inventory, and financial information—often in as little as six weeks.

Identifying Potential Improvements in Supply Chain Performance

We also can leverage our knowledge and experience to help a PE firm identify ways to improve supply chain performance—either in an acquisition target or existing portfolio companies. For instance, recently a $100 million manufacturer found it could generate annual increases in productivity of between 5 percent and 6 percent by taking a number of key actions recommended by SCE. SCE is also leading the implementation initiatives to drive these gains.

Whether you’re in need of a more robust due diligence review of operations or a boost in performance of your portfolio holdings, Supply Chain Edge can help PE firms reduce the risk of, and generate greater return on, their investments in today’s challenging business and financial climate.