Creating significant pre-exit valuation multiples for a PE firm (CS298)

1. Want to quickly increase the exit valuation of a company
2. Have limited resources to dedicate to a pre-exit sprint
3. Understand the impact on buyers of an objective, third-party analysis

The private equity owners of a specialty chemical company were ready to exit the company and had asked the CEO and leadership team to drive more value than they already had. As the time for selling drew nearer, the PE firm realized it needed a third party to intervene to raise the exit valuation based on current multiples. The PE firm had never engaged in pre-exit value creation before; and the CEO and his leadership team were extremely doubtful that any additional value could be created.

• Engaged with 60+ suppliers to find optional sourcing and drive down pricing relative to the competition
• Moved suppliers from spot pricing to index pricing plus adder • Trained procurement organization on strategic procurement
• Closed the analytics gap created by multiple, incompatible ERP systems
• Significantly increased the exit multiple for the seller
• Provided independently verified savings, giving the buyer greater confidence
• Exceeded the original expectation of 11% to 13% savings, reaching an average of 15% across categories