Press Releases & News

Expansion on TVO Operational Due Diligence Offering for PE Firms

Written by Maine Pointe | Jan 30, 2020 5:00:00 AM

Maine Pointe’s pre- and post-acquisition optimization services enhances competitiveness, confidence, deal conversion, time-to-value creation and exit value

as published on PRWeb

Boston, Mass., January 30, 2020 – Global supply chain and operations consulting firm Maine Pointe announced an expansion of its successful work with the Private Equity sector, with the release of its expanded TVO Operational Due Diligence service offering with a dedicated team. By rolling out tighter support for its PE clients, Maine Pointe has enhanced its capabilities to offer a comprehensive set of pre- and post-acquisition due diligence and implementation offerings designed to improve confidence, competitiveness, time-to-value creation and exit valuation.

Studies have shown that in today’s hyper-competitive PE market, some PE firm investments are falling short of their financial and operational targets, data that underscores the importance of rigorous due diligence. “Operational due diligence is perhaps the most important aspect of value creation for PE companies,” said Mark McTigue, Executive Vice President, Private Equity North America at Maine Pointe. “PE firms have always been attentive to due diligence, but now with merger and acquisition activity at an all-time high and valuation multiples at their highest, PE firms are doubling down to ensure they are making the best decisions and identifying each deal’s full potential.” Maine Pointe drives value throughout the entire deal lifecycle from analysis to implementation, and our Total Value Optimizationä approach ensures sustainable change to reduce risk and create a clear path to realizing EBITDA gains.

“With the end-to-end supply chain (procurement, logistics and operations) representing approximately 80% of a firm’s cost base, according to the Global Supply Chain Institute, our measurable results-driven approach to supply chain optimization underpinned by data analytics, helps PE owners and executives of portfolio companies unlock and realize significant value across the deal lifecycle, ” said Jamie Loder, VP Private Equity, Europe.

Maine Pointe’s comprehensive operational due diligence offering identifies value creation opportunities in both the end-to-end supply chain and operations, quantifies EBITDA and inventory improvements, risks and opportunities, and then creates an implementation roadmap with actionable steps to accelerate operational improvement. Engagements typically deliver between a 4:1 to 8:1 ROI, with a unique 100 percent guarantee of engagement fees based on annualized savings. Maine Pointe has delivered billions of dollars in benefits to over 50 PE firms operating in 30 countries around the world. In one example of Maine Pointe’s approach, a PE owner’s portfolio company achieved a 60:1 ROI at exit in less than one year. For maximum effectiveness, Maine Pointe’s approach encompasses pre-acquisition diligence, post-acquisition integration and value-capture implementation, delivering sustainable improvements and measurable bottom-line results.

“Successful due diligence depends on leveraging a target’s data and it requires industry expertise to use the data to identify revenue enhancement and cost savings opportunities,” said McTigue. “This improves PE credit committee confidence in valuation before the transaction closes and provides for better execution on the value thesis.”

After a client firm acquires the target, Maine Pointe aligns management and organization while driving quick wins in less than 90 days, driving improvements across procurement, logistics and operations.

The PE market will continue to grow more competitive, and as a result, PE firms must enhance the approach to diligence with robust analytics for creating a robust investment thesis, making sound buying decisions, and take steps to speed up the value creation process. Maine Pointe’s TVO Operational Due Diligence offering has proven to uncover these opportunities and lead to positive results and unparalleled value creation.

Maine Pointe’s Operational Due Diligence team is comprised of McTigue as leader, with Doug Radtke, Diligence and Analysis Director, Joe Esteves, Vice President, Private Equity North America, and Jamie Loder, Vice President Private Equity, Europe. Maine Pointe thought leaders are often sought after by the business press for commentary, and their views on PE issues have been published in M&A Magazine, Consulting Magazine, PEHub, The Innovation Enterprise and many other widely read business and industry publications.

About Maine Pointe 

Maine Pointe, a member of the SGS Group, is a global supply chain and operations consulting firm trusted by many chief executives and private equity firms to drive compelling economic returns for their companies. We achieve this by delivering accelerated, sustainable improvements in EBITDA, cash and growth across their procurement, logistics, operations and data analytics. Our hands-on implementation experts work with executives and their teams to rapidly break through functional silos and transform the plan-buy-make-move-fulfill digital supply chain to deliver the greatest value to customers and stakeholders at the lowest cost to business. We call this Total Value Optimization (TVO)â„¢.

Maine Pointe’s engagements are results-driven and deliver between 4:1-8:1 ROI. We are so confident in our work and our processes that we provide a unique 100% guarantee of engagement fees based on annualized savings. www.mainepointe.com