private equity Content

Alejandro Alvarez, Partner: Operations Performance at Ayming UK, offers four impacts and effects of the events of 2020 on the private equity value-creation process.

"In our experience, when working with private equity firms and their portfolio businesses, robust VCPs that address multiple areas of the business to deliver sustainable improvements are the foundation for success. But what happens when, across the world, several facts and underlying assumptions that were taken into consideration to build VCPs drastically change within a matter of weeks? It is all relative, and indeed the answer depends on many different parameters, such as the business sector, capability to adapt and innovate, and supply chain resilience, among others. We could all come up with a long list of impacts and effects that 2020 will have on the PE value-creation process, in different ways and depths for every business, but I'd like to highlight four."

Continuing with our analysis of private equity and procurement based on Jeff Gallant’s observations at the SIG event, one underplayed aspect of the network or portfolio effect of driving procurement and operational savings is the, well, network itself! Jeff suggests that the value of the “social network” – i.e., getting different portfolio company procurement leaders together – can be significant.

Continuing with our analysis of private equity and procurement based on Jeff Gallant’s observations at the SIG event, one underplayed aspect of the network or portfolio effect of driving procurement and operational savings is the, well, network itself! Jeff suggests that the value of the “social network” – i.e., getting different portfolio company procurement leaders together – can be significant.

The first installment of this series (and subsequent topical coverage), exploring the evolution of private equity and procurement, is based on a presentation given by WCAS’s Jeff Gallant at Sourcing Interests Group’s Spring 2013 Summit. Today's installment focuses on how to drive savings and EBITDA.

The first installment of this series (and subsequent topical coverage), exploring the evolution of private equity and procurement, is based on a presentation given by […]

At Sourcing Interest Group’s Spring Summit, Welsh, Carson, Anderson & Stowe’s (WCAS) Jeff Gallant gave a fact-packed, fast-paced hour-long introduction to the world of private […]

At Sourcing Interest Group’s Spring Summit, Welsh, Carson, Anderson & Stowe’s (WCAS) Jeff Gallant gave a fact-packed, fast-paced hour-long introduction to the world of private equity and procurement in a talk titled Procurement as critical resource: creating value through private equity portfolio management. I came away from the presentation with a strong appreciation for the opportunities of a relatively new position that is emerging for former CPOs and procurement leaders: serving as operating partners within the private equity world. However, the lessons that Jeff shared are not just relevant to those transitioning into the world of leveraged buyouts – they are applicable to all of us that serve as service providers to our businesses.

Spend Matters welcomes a guest post from Simon Woodcock, the Sales and Solution Manager at Xchanging Procurement Services.   Private Equity (PE) firms allegedly make […]

For private equity firms, the final frontier of procurement and savings influence is often direct materials. Ironically, smaller PE firms with middle market investments are more likely, based on our research and experience, to become involved in making recommendations around sourcing in the following types of direct materials categories: metals (ferrous, non-ferrous, semi-finished, finished, parts, etc.), plastics/resin, packaging, electronics (PCBs, PCBAs, etc.). Because most private equity MDs are very distant from understanding the worlds of manufacturing and design/engineering, few are willing to dive in and consider recommendations to drive savings and risk reduction opportunities in areas that can truly impact production operations and the top line.

Here at Spend Matters, we believe that PE firms should consider GPOs a key piece of a broader portfolio strategy to drive procurement and operational savings within their investments. Based on our recent research into the topic, we’ve seen a diverse set of broader cost savings and related procurement/operational investments and programs made by PE firms to improve earnings within their portfolios.