PRIVATE EQUITY

Operational Value Creation

At The Poirier Group, we understand that true value creation for private equity portfolio companies goes beyond the confines of financial metrics and performance indicators. While profitability and financial health are paramount, sustainable success demands a holistic approach. Our commitment lies in delving deeper, into the realms of operational value creation.

THE IMPORTANCE OF OPERATIONAL VALUE CREATION

In the dynamic landscape of private equity, operational value creation emerges as a linchpin for success within portfolio companies. By instilling operational value creation as a pivotal component of an investment strategy, we empower private equity firms to chart a course that extends beyond short-term gains, fostering sustained growth and bolstering the long-term value of their portfolios.

Robust operational value creation projects can help your portfolio companies by:

Growing organization capacity
Freeing up cash
Eliminating duplicate or non-value add efforts
Improving company culture
Opening up new revenue streams

OUR APPROACH TO OPERATIONAL VALUE CREATION

The financials reveal promising opportunities, but do you have a roadmap to translate these opportunities into tangible and realized potential?

Through a transparent and cooperative engagement with your private equity team and portfolio company management, our process starts by aligning strategic objectives. We cultivate trust among the portfolio company team members as we systematically explore and evaluate the current organizational landscape, processes, and systems. This comprehensive assessment involves interview sessions, meticulous data analysis, and thorough documentation reviews.

Integral to this discovery process is the active involvement of key leadership members, ensuring ongoing communication of our findings and fostering an agile approach to driving transformative change. Armed with a profound understanding of the portfolio company, we craft a strategic roadmap that illuminates the path to full potential realization. This roadmap serves as a visionary guide, unveiling the investment requirements and timeline necessary for the portfolio company’s journey toward optimal success.

Central to our approach is a mindfulness of change management principles. By seamlessly involving the portfolio team in every phase, we not only navigate potential hurdles more smoothly but also pave the way for a more effortless realization of the full potential inherent in the investment.

OPERATIONAL VALUE CREATION FOCUS AREAS

Operational Value Creation initiatives inherently revolve around the essential components of people, processes, and systems.

Tailoring our strategies to the dynamics of each company, the roadmap and solutions may span across a number of initiatives:

Process Refinement: Delving into processes to identify and eliminate duplications or non-value-added work, ensuring efficiency and effectiveness
Team Empowerment: Elevating team members through streamlined work scopes and refined responsibilities, fostering a dynamic and empowered workforce
Supply Chain and Operations Optimization: Enhancing the supply chain and physical operations to achieve optimal efficiency and resilience
Financial Streamlining: Liberating cash resources by tightening accounts receivable/accounts payable processes and enhancing inventory positions
Change Management: Implementing strategies to seamlessly navigate and incorporate organizational changes, ensuring a smooth transition for all stakeholders
Systems Assessment: Evaluating and optimizing the technological infrastructure to enhance operational efficiency and support strategic objectives

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Want to realize hidden benefits for your portfolio companies?

THE #TPGDIFFERENCE | CLIENT TESTIMONIALS

“While I have rarely been a proponent of consultants, The Poirier Group and their supportive approach have positively changed my view to the immense value that the right consulting organization can bring.”

“Your excellent communication and overall leadership was appreciated. I felt like our two groups were true partners on this project and achieved success together. Thanks again for you and your team.”

“Overall, I would give The Poirier Group an A+ in solution generation, service delivery and providing with a highly talented team to work with. Great work”

"Just want to acknowledge the excellent presentation yesterday. It was thorough, comprehensive and well received not only by the Steering Committee but even more importantly by owners. The presentation inspired their confidence in The Poirier Group and in the direction we are moving in this comprehensive process. Great job."

“Looking back on our time with The Poirier Group, we would not have been able to achieve our inventory management and overall business objectives without their services. If you are considering an engagement with The Poirier Group, I highly recommend them.”