Maximizing Value Creation in Private Equity Through Asset Portfolio Optimization

A volatile, uncertain, complex, and ambiguous (VUCA) business landscape — including changing regulations, tariffs, and global economics — challenges private equity (PE) firms as they seek to get maximum returns from their portfolio of assets.

In response to business challenges, many PE firms are trying to optimize their portfolio companies’ networks of plants, assets, and suppliers to increase value and returns. Few PE firms can do this alone, and they’re turning to the EFESO Asset Portfolio Optimization approach, which has rapidly reconfigured sourcing and production networks, decreased network costs, and increased profits from the same or fewer assets and investments via:

• Value-Chain Optimization considers the holistic value-chain and identifies the means to establish an agile, resilient, and more efficient value chain.

• Network Footprint Optimization evaluates the location of assets and establishes a new network that produces in the best locations in response to current and future demand and facilities’ capabilities and capacity.

• Node Optimization identifies wastes and weaknesses of plants and closes those gaps through the application of lean techniques to improve quality, cost, and delivery.

EFESO subject matter experts bring deep industry and operations experience to clients as we not only assess and set strategy for reconfigured assets, we are on the ground with PortCo management to execute on those plans. In as little as six months, we’ve delivered sustainable result to PE firms, including 5-9% revenue increase, 6-10% EBIT increase, 20% to 30% reduced capital spend