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  • Private Equity

    Private Equity

    Unlocking tangible value and driving sustainable competitive advantage through operations

  • Private Equity

    Private Equity

    Unlocking tangible value and driving sustainable competitive advantage through operations

Private Equity

Soaring valuation multiples across industry sectors, combined with today’s highly volatile business environment call for Private Equity firms to have a clear investment thesis for each deal that they undertake, and to focus even more intensely on margin improvement activities grounded on a solid cost-reduction platform, such as:

  • Transforming a ‘good’ company to a ‘great’ one, by improving operational metrics, providing additional capital where required, and developing new capabilities
  • Transforming ‘mediocrely’ performing companies into ‘good’ one, by significantly improving their cost structure
  • Turning around distressed companies, and returning them to the path of profitable growth

Private Equity firms are increasingly driving the value creation agenda of the companies in their portfolios, and are actively looking for partners with credible capabilities to lead such operational transformations.

EFESO is a trusted partner for Private Equity firms, supporting their portfolio companies’ operational transformations, including future-proofing operations and developing value-adding ESG (environment, social and governance) initiatives.

Andrea Mantegazza

VP & Head of Global Private Equity Practice

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What is your challenge?

Whatever your challenges we will find a tailored approach with you
  • Have a clear idea of operational risks and potential upsides before closing a deal
  • Carry out a ‘build up’ strategy by effectively executing Post-Merger Integration (PMI)
  • Unlock value through effective operational transformation
  • Ensure company resilience by redesigning its operational performance and footprint
  • Successfully executing an operations turnaround

The EFESO touch

A tailored approach to meet your needs

EFESO Consulting provides Private Equity firms and investors with both Strategy and Operations consulting. From performing due diligence activities to improving portfolio-company performance, and maximizing exit value, we collaborate effectively with companies’ management teams to ensure successful and sustainable value creation. We support the performance improvement of companies across every phase of the transaction (pre-deal, deal, and post-deal), identifying actionable EBITDA improvement opportunities, and maximize the value of Private Equity firms’ investments.

We have a pragmatic and results-oriented approach, combined with deep industry expertise. We leverage our recognized expertise in Operations and our proven diagnostic tools to quickly evaluate the client reality and identify potential improvements. Consequently, we are regarded as a trusted partner for Private Equity firms and investors looking for strategic and hands-on support and capabilities in drive sustainable value creation. At all times, we work in tandem with companies’ management teams, to ensure a successful and long-term business partnership. Our experts are known for challenging existing plans, identifying and unlocking sources of value, and evaluating and coaching talent.

We have a proven record of EBITDA Improvement, combining magnitude, speed and sustainability.

Some of the tangible results we deliver for Clients

Our Services

Maximize impact and value

EFESO partners with Private Equity firms and institutional investors on multiple fronts, including due diligence, post-merger integration, and portfolio companies’ performance improvement, digital/industry 4.0 transformation, and turnaround.

  • We carry out both sell-side and buy-side due diligence activities, offering analyses of target company business and operations, financials and capital structure, and relevant industry and competitive landscape.

    Our structured and comprehensive approach is based on deep industry expertise delivering assessments of both companies’ qualitative characteristics and quantitative facts and figures, anchored to industry and company reality.

    We complete an objective and unbiased analyses ensuring an understanding and evaluation of business and operational risks and potential downsides while clearly identifying concrete levers to maximize potential improvements to EBITDA, focused on both short- and medium-term horizons.

  • The 100-day plan - the gearbox between investment case and operational results - needs to be supported and embraced by the Private Equity firm as owner as well as by the acquired company’s leadership.

    Often when the 100-day plan fails to translate into results it is when there is not enough focus on sustainable improvements, and key expertise is lacking. The first 100 days are crucial in terms of making an impact and delivering a fruitful post-acquisition integration.

    We recommend involving all employees of the acquired company. EFESO support the buyer in aligning the acquired company management, developing and confirming the strategy, and setting ambitions and expectations.

    At EFESO we work as a catalyst to unleash the acquired company’s full potential, by bringing in our industry experience, independent view, and proven ability to work in tandem with companies’ leadership. We facilitate trust-building and collaboration between Private Equity firms and company management.

    Our teams help Private Equity clients to ensure their investment case delivers on expectations. We can support you by:

    • Developing the strategy based on the original investment case and due diligence into an actionable plan
    • Identifying cash-generating initiatives based on operational gap analysis performed by seasoned industry experts
    • Defining, launching, and supporting plans for the top two to three initiatives that will drive value creation over the targeted investment horizon
    • Developing a clear and measurable change roadmap that engages key stakeholders
  • EFESO Consulting helps companies and Private Equity firms’ acquisitions to deliver benefits in record time.

    Success requires a fully controlled and cutting-edge integration approach to enhance value creation and speed of benefit delivery.

    Providing strategy, operational, and PMO capabilities, from strategic ambition through to implementation plan and integration execution, we ensure organization alignment and companies’ teams full adoption of best practices.

    EFESO Consulting support its clients in post-merger integration projects, tailoring the approach by considering the merger challenges and respective company size, working in tandem with companies’ executive committees and integration teams, and providing sector and/or functional expertise when and where necessary.

  • Many companies are investing heavily in digital transformation and improvement initiatives, but struggle to see the ensuing results.

    EFESO Consulting helps Private Equity firms and investors to deliver a step change in performance, helping them to reach the next level in further improving already excellent processes, and establishing a ‘digital mindset’ within the organizations. We provide a combination of deep lean and operational excellence know-how for data scientists and IT architects.

    Each year, as we have done for the past eight years, we celebrate best-in-class companies in terms of Industry 4.0 with our Industry 4.0 Award, thus establishing the benchmark for industrial digital excellence.

    We focus on creating value throughout the Private Equity investment lifecycle, e.g.:

    Acquisition

    • Integration of platforms/ systems between portfolio companies (if applicable)
    • Digital scan for low hanging fruit in terms of the deployment of cobots/ robots/ intelligent sensors, and reduced labour costs
    • Connect the new portfolio company to Private Equity management dashboards

    Portfolio

    • Finding ways to further improve functional excellence in e.g., Supply Chain, Procurement, and Manufacturing.
    • Changing the business model from one focused on purely selling hardware to one of also selling associated services (‘servitization’)
    • Set-up systems for buy-build strategy: quick roll-up and integration of acquired companies
  • EFESO Consulting helps Private Equity firms and investors develop and execute turnaround and restructuring plans in order to restore and recover the profitability of acquired companies.

    Our experts have extensive experience of providing advice regarding different aspects of the profitability improvement process, including defining strategic directions, developing business plans, supporting execution throughout the value chain, and developing industry-specific actionable plans with result-driven targets.

    EFESO’s transformation framework is based on a preparation phase, assessing company’s situation and preliminary improvement potential, a planning phase, and finally a support phase during the execution of the turnaround plan.

  • EFESO’s framework for a successful Post-Transaction Transformation has helped clients to reach EBITDA improvements identified during the due diligence phase, helping Private Equity firms to capture more value from their M&A deals.

    Our distinctive hands-on approach is based on quantitative data firmly anchored to industry and company reality with a strong focus on leveraging leadership in order to drive change.

    Our teams work “in tandem” with our clients in order to address challenges in EBITDA growth, and work to implement identified improvements stemming from such factors as gaps in leadership, changes in manufacturing strategy and operations, and inefficient manufacturing and distribution processes.

    We leverage our proven frameworks to rationalize every aspect of the business, and provide thorough planning and support during implementation in order to ensure that a measurable financial impact results.

    We address the following performance drivers within manufacturing industry:

    Manufacturing strategy

    • Organization Restructuring and Rightsizing
    • Product Portfolio Optimization
    • Maintenance and Growth CAPEX
    • Make vs. Buy Analysis and Strategy
    • Sales, Inventory and Operations Planning (S&OP)
    • Automation and Technology

    Footprint optimization

    • Green Field/Brown Field
    • Asset Utilization and OEE
    • Productivity (Zero losses and Quality (Zero defect)) Improvement
    • Capacity Modeling
  • Sustainability is becoming an important theme among organizations, and at EFESO we support Private Equity firms to make an impact on sustainability through their investments, delivering tangible value through an integrated Sustainability strategy and operational plan.

    Sustainability themes are addressed and correlated to financial performance both before during and after an M&A transaction, with an increasing level of detail:

    • Pre-transaction: Initial screening against general industry scoping
    • Transaction: Assess sustainability risk and opportunities, and benchmark
    • Post-transaction: Achieve sustainability excellence

Meet our Private Equity Experts

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