Operational Advisory Services
Even in the face of rising inflation and supply chain challenges, achieving EBITDA growth is still attainable. Strategic procurement plays a crucial role in this effort, and companies that adapt to the evolving environment can not only protect their margins but also create value and profitability despite adverse conditions.
As private capital continues to expand, private equity firms are uniquely positioned to create exceptional value while contributing positively to global progress. In a world undergoing rapid transformation, maximizing the value creation of portfolio companies has become critical to achieving the most lucrative exits.
To maintain margins in times of uncertainty, private equity firms have implemented extensive measures to enhance both top and bottom-line performance. However, there is still untapped potential for operational improvements. Procurement can serve as a strategic tool for private equity to drive EBITDA growth.
We leverage years of expertise and advanced procurement optimization programs to support the value enhancement of your portfolio companies. Our guidance spans the entire investment lifecycle—from short-term actions during due diligence to operational improvements during the holding phase, and finally, preparing for exit.
Portfolio companies under long-term private equity ownership often already have highly professional procurement organizations and have implemented standard measures. We go beyond these to identify additional opportunities using sophisticated methods. Additionally, we assist in the digital transformation 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. KGM Strategy 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.
