Operations Consulting
Despite the current climate of steep inflation and raw material shortages, it remains possible to secure EBITDA growth. Procurement has an instrumental part to play in this process and those businesses that respond to the shifting landscape will not only defend their margin, but will be able to drive value and profit against the tides.
With the growth of private capital, private equity firms are perfectly placed to generate unprecedented value, while making a positive difference in the world. The rapid changes that the world is experiencing make it more important than ever to maximize the value creation of portfolio companies in order to achieve the most profitable exits possible.
In order to stabilize margins amid recent uncertainty, private equity companies have pulled out all the stops to improve both top and bottom line performance. A closer look, however, reveals that not all potential for operational value enhancement has been exhausted. This is where procurement can be private equity’s secret weapon to secure EBITDA growth.
We support the value enhancement of your portfolio companies with many years of expertise and powerful procurement optimisation programs. We accompany you throughout the entire process – from short-term measures during due diligence, to operational measures to increase value during the holding phase, to preparing the exit.
Portfolio companies that have been in private equity ownership for a long time usually already have a very professional procurement organisation and have already implemented the entire set of standard measures. We go one step further and use sophisticated methods and levers to find further potential in your portfolio companies. In addition, we support you in the digitalisation of processes and the implementation of compliance and sustainability strategies.
The increasing cost of capital creates urgency for private equity to drive quicker and more sustainable value delivery. Private equity firms benefit from setting ambitious targets for their portfolio companies and optimizing their bottom line. Inverto can help to fund this journey. Our Private Equity practice is fully integrated with the Principal Investors and Private Equity industry teams at BCG. Clients have the benefit of a seamless combination of our hands-on procurement and supply chain know-how and extensive private equity experience, as well as the strategic focus and global expertise of our BCG colleagues to capitalize on opportunities while navigating uncertainties.
PROCUREMENT: LET’S GET REAL!
We offer procurement support along the entire private equity investment cycle. Our execution capabilities allow us to tailor our partnership model to each client situation.
After a detailed analysis of your direct and indirect requirements, we develop an action plan by identifying the optimal levers for each product group. As a rule, we start with categories in which we can realize quick wins – rapid savings results that become immediately visible in the P&L. Using methods such as demand management and cost structure analyses, we put specifications to the test and uncover inefficiencies that lead to further savings.
As part of the optimization process, we also put the procurement organization of your portfolio companies to the test. We support you in formulating procurement strategies, optimize procurement processes and further develop the organisation. This also includes the accompanying implementation of change management measures and training programs.
We help with digitalisation projects with our expertise in various industries – from the implementation of e-sourcing tools and the digitalisation of procurement processes to powerful data analyses and dashboards.
In order to secure the solvency of your portfolio companies and avoid unnecessary surpluses, we optimise payment flows and inventories and thus ensure an working capital is optimized.
We create visibility of your portfolio companies’ scope 3 emissions by developing a Carbon-Cube. This allows us to identify and deliver procurement opportunities to reduce net emissions in the supply chain.
