Private equity firms have a unique opportunity to unlock new sources of value in their existing and prospective portfolio companies. Current events have shifted customer and employee behavior to uncover unique operational synergies and revenue opportunities. Rapid developments in digital tools, advanced analytics, remote diagnostics, and automation have augmented traditional private equity playbooks, allowing firms to accelerate their diligence, operational optimization, and decision-making processes.
Operating partners that seize this opportunity can expect 10-20% in additional EBITDA. The question is no longer “if” but “how” and “where first” portfolio companies can leverage new capabilities to exploit opportunities, drive efficiencies, and accelerate innovation for growth.
Market growth remains difficult to achieve with operational complexity and continuously changing markets compounding the issue. Unlocking value in today’s market demands innovative ways to identify and leverage insights, combined with fast, agile execution. It means effectively combining digital capabilities with established operational improvement techniques to unlock previously unattainable performance and synergies.
SSA & Company targets 10-35% in increased annualized EBITDA when working with its private equity clients, often developing new operating models; harnessing data analytics to achieve better, faster results, increasing asset efficiency, and gaining new insights into markets, customers, products, channels, and pricing.
Operating Partner, Private Equity Firm
Providing financial and operational analysis, organizational effectiveness assessment, strategic alignment review, upside business case hypotheses generation, competitive benchmarking, risks and mitigation identification, implementation assessment
Assessing current state of core people, process, technology, and digital components of the business, site visits & evaluation, LEAN capabilities & maturity assessment, organizational structure & census review, financial analysis & benchmarking, executive & key staff interviews & evaluations, future state & upside scenario generation, risk & mitigation identification, business case creation & investment thesis refinement (EBITDA, cash flow, operations, and organizational impacts)
Planning and readiness planning for Post-Close and Day 1 priorities; 100-day plan, critical workstream definition & prioritization, synergy target & key performance indicator definition, business case tracking, and organizational change readiness
Enabling client team mobilization, quick hit implementation, accelerated LEAN implementation for critical processes, execution of initial organizational changes, business case & key performance indicator tracking
Leading core operational improvement & LEAN transformation implementation, digital acceleration, organizational consolidation & shared service implementation, supply chain & vendor optimization, organizational optimization & rationalization, management control, and reporting
Identifying additional upside and external growth opportunities to increase portfolio company value post-exit
A private equity-backed fire suppression business had acquired several competitors as part of an aggressive roll-up strategy, and three recent acquisitions were performing poorly.
Learn More
2023 was a difficult market in many ways. Acquisitions and dollars invested along with exits and IPOs were down while capital under management continued to accumulate. As a result, the world for financial sponsors grew much more competitive, causing them to focus on building distinctive, proven competitive advantages – in raising capital, in finding deals, in exiting, and of course, in fundamental value creation.
Learn More
External headwinds and difficult performance outlooks have forced private equity firms to rethink near-term prospects and portfolio company strategies. In this Value Walk article, Matt Katz and Andrew Solar outline a new playbook for private equity companies leading in uncertainty.
Learn More
A private equity-backed fire suppression business had acquired several competitors as part of an aggressive roll-up strategy, and three recent acquisitions were performing poorly.
Learn More
A rapidly growing multi-office medical provider needed to define processes, steps, and duration, and implement performance metrics and dashboards so they could drive acquisition ROI and office contribution.
Learn More
A specialty dental organization wanted to create a sustainable operating platform for acquisition.
Learn More
A private equity-owned contract manufacturer faced a diverse product set and disconnected systems that grew through acquisition.
Learn MoreWhile today’s age of disruption and rapid digitization has companies rethinking their strategies, few know how to translate them into action and results. We work with clients to develop and implement tailor-made solutions that deliver exponential returns.
Contact Us
