Private Equity

Private equity companies strive for top returns. In order to realize an internal rate of return (IRR) of greater than 20% p.a. it is essential to generate added value in the portfolio. Financial engineering or cost optimization are useful methods to achieve this. However, these measures are usually insufficient in realizing superior returns.

Market-relevant parameters are the most effective levers to optimize profits. Thus it is even more astonishing that these measures are often neglected in day-to-day business, leaving significant room for improvement.

Buy: Market/Commercial Due Diligence
Evaluate an investment from a market perspective (including assessment of its future potential). The key aspects are:

  • Identify and evaluate risks and opportunities of an investment from the perspective of the market, technology, customers, and competitors
  • Validate the business plan (top-line development)

Team structure is a key success factor. Consultants with excellent expertise in transaction processes team up with consultants who are experienced in the relevant industry.

Grow: Added-value Strategies
Define and implement clear-cut measures to exploit market-relevant profit potential, e.g.:

  • Clear-cut pricing measures (optimize price level, elasticity-based price differentiation, discount optimization, price monitoring)
  • Sales force optimization (introduce a systematic sales approach, reorganization of incentive system)

Sell: Vendor Due Diligence
Support the achievement of a good purchasing price by defining and clearly communicating key selling arguments.

Selected clients

  • 3i
  • Advent International
  • Apax Partners
  • Clayton Dublier & Rice
  • Dresdner Kleinwort
  • Gilde Buy Out Partners
  • GMT Communications Partner
  • Goldman Sachs
  • Granville Baird
  • Hg Capital
  • KKR
  • Riverside