Private Equity
Per Pitchbook, average holding period for Portfolio companies has gone up to 6.38 years. PE exits have reduced by 20% in 3Q 2017 from 2Q 2017 as PE buyers have not been able to find strategic acquirers.
During Due Diligence phase, your analysts pour over hundreds of spreadsheets to analyze potential portfolio companies. They spend time on data preparation and then analyzing and valuing these companies. All of this takes time. Imagine a scenario, when you can plug the potential portfolio company data into a tool and analyze results right away. Not only is your valuation based on your analysis, but now you have another way to base your valuation on - real customer lifetime value.
You bought a company after extensive due diligence. Everyone has signed off on the 100 day plan and the success criteria. As an Operating partner, how can you reduce holding times and make the investment attractive for a corporate buyer? To quote Peter Drucker: "If you can't measure it, you can't improve it." Do you have an automated data collection methodology to measure the effects of your strategic planning? Do you have historical data to understand the impact of these changes? Are you spending more time on data preparation/creating reports and less time on analyses?
During Due Diligence phase, your analysts pour over hundreds of spreadsheets to analyze potential portfolio companies. They spend time on data preparation and then analyzing and valuing these companies. All of this takes time. Imagine a scenario, when you can plug the potential portfolio company data into a tool and analyze results right away. Not only is your valuation based on your analysis, but now you have another way to base your valuation on - real customer lifetime value.
You bought a company after extensive due diligence. Everyone has signed off on the 100 day plan and the success criteria. As an Operating partner, how can you reduce holding times and make the investment attractive for a corporate buyer? To quote Peter Drucker: "If you can't measure it, you can't improve it." Do you have an automated data collection methodology to measure the effects of your strategic planning? Do you have historical data to understand the impact of these changes? Are you spending more time on data preparation/creating reports and less time on analyses?
Due DiligenceInsightsBoT segments and synthesize data at a channel, product, geography and customer level so that you know the demand in each market. It also evaluate your Go To Market strategy to let you know what is working and what is not. Account Management, Salesforce Effectiveness, Lost Revenue, etc are also captured in addition to Competitive Intelligence.
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100 Day PlanDuring the due diligence phase, you have already identified Portfolio of Initiatives that involve consolidation and centralization projects, product rationalization, channel expansion, capacity utilization, etc. We can benchmark your success criteria and measure both operational and financial performance of the portfolio company against your goals.
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