According to the paper, global risk factors and supply chain vulnerability are creating major challenges, and the acquisitions market has become more competitive with a record level of unspent private equity capital. Geopolitical risk factors, including the US-China trade war, the spread of coronavirus, the coming US presidential election, and Brexit are all challenging the PE industry.
“Our new perspectives paper not only brings to light some of the biggest challenges faced by PE firms today, it also outlines actions that can be taken to compete successfully and continue to drive value in even the most challenging circumstances,†said Mark McTigue, Executive Vice President, Private Equity North America & Europe of Maine Pointe. “An integrated, end-to-end digital supply chain is one way PE firms are unlocking shareholder value and improving their competitiveness in this challenging environment,†McTigue added.
Maine Pointe’s PE practice, and its operational due diligence team, has worked successfully with the private equity sector with a comprehensive set of pre- and post-acquisition due diligence and implementation offerings designed to unlock value across the entire deal lifecycle, from due diligence to exit.
“Identifying new risks and exploiting new opportunities is a significant driver of value creation,†said Jamie Loder, Vice President, Private Equity Europe of Maine Pointe. “We are seeing a limited supply of attractive targets and new challenges in operational execution. Unexpected challenges like the current public health emergency from the Coronavirus have already impacted the industry, as global supply chains see their supplies running low†Loder added.
The report includes real-world case studies showing how Maine Pointe doubled EBITDA for a PE firm taking a publicly-traded audio and technology consumer products company private, and in another success story, achieved a 32 percent EBITDA improvement and reduced global procurement spend by 10.9 percent for a global high-tech solutions provider.
Maine Pointe’s McTigue added, “The report offers an in-depth look at private equity market dynamics throughout North America, Europe and Asia, with guidance on identifying and unlocking the ‘hidden value’ across the supply chain.†That process is enabled by Maine Pointe’s Total Value Optimization (TVO)™ framework, which allows PE firms to find the value drivers for cost, cash and growth, and then builds an action plan to achieve those goals by leveraging the end-to-end supply chain, driving cross-functional integration and producing the highest availability with the lowest cost and capital investment.
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.
as published on PRWeb
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
About SGS
SGS is the world's leading inspection, verification, testing and certification company. SGS is recognized as the global benchmark for quality and integrity. With more than 97,000 employees, SGS operates a network of over 2,600 offices and laboratories around the world.