Procurement: The Underdog in Private Equity

Procurement: The Underdog in Private Equity

Zachary Bachir Blog, Private Equity

Most executives in the PE world understand that procurement helps embed commercial discipline within an organisation by managing its spend patterns and behaviours. The more robust its policies and processes, the more this value is reflected in the bottom line. But there’s a bigger reason behind procurement’s appeal, and that’s because it can be easily leveraged to deliver significant EBITDA …

Improving supply chain due diligence in private equity

Improving supply chain due diligence in private equity

Jeremy Smith Blog, Private Equity

Be honest, how rigorous is your operational due diligence at bid phase? It seems that the reality is that the business mantra of ‘plan for the worst and hope for the best’ seems to be one that is conveniently overlooked when assessing pricing decisions in a market where a 15% acquisition success rate is viewed favourably and risks feel like …

Enabling transparency, control and EBITDA growth through procurement technology

Enabling transparency, control and EBITDA growth through procurement technology

Jeremy Smith Blog, Private Equity

Mid-market private equity owned organisations usually have a short history of rapid growth or intensive merger & acquisition / bolt-on activity. Their next phase of growth is usually based on product or regional expansion and whilst investing in this approach it is vital that cost control is not forsaken. If, and it will be a nice problem to have, growth …

The rise of cybercrime

The rise of cybercrime

William Tickel Blog, Cybersecurity

Cybercrime is on the rise, and as more of life and business relies on computer technology, the chances that your business will experience a cyberattack (if it hasn’t already) will only increase as time goes on. A recent report has suggested that as many as 50% of SME’s have already experienced a cyber-attack in the past 12 months. Despite this, …

Theresa May’s crackdown on M&A ‘Asset-Strippers’ and the importance of Procurement

Theresa May’s crackdown on M&A ‘Asset-Strippers’ and the importance of Procurement

Jack Greenwood Blog, M&A, Private Equity

4C Associates’ Jack Greenwood considers how the Conservative Party’s Manifesto could impact M&A activity and lead to Procurement playing a growing role in Private Equity. Following the Conservative Party’s troubles during the Snap General Election, Prime Minister Theresa May will move to turn things around by implementing her party’s Manifesto. One key aspect of this document looks to block Investor …

Driving revenue growth and enhancing EBITDA though effective supplier relationship management

Driving revenue growth and enhancing EBITDA though effective supplier relationship management

Jeremy Smith Blog, Private Equity

Despite a reputation as a simple cost-cutter, Procurement can and should contribute more within the realm of Private Equity. A modern Procurement department can balance cost optimisation and growth enhancement to deliver increased value to Private Equity boardrooms and actively shape a business’s strategic direction and competitive differentiation. When the goal is to grow top-line revenue, as it often is …

PE OPEN: Whitepaper: Private Equity and the Role of Procurement

4C Associates In the press

Despite a reputation as a simple cost-cutter, Procurement can and should contribute more within the realm of Private Equity. Financial engineering is no longer the default means through which Private Equity firms aim to generate value and reliance is shifting towards maximising revenue growth, enhancing working capital and creating higher enterprise value through financial management. Read full article here

Private Equity and the Role of Procurement

Whitepaper: Private Equity and the Role of Procurement

Jeremy Smith Blog, Private Equity, Whitepapers

Despite a reputation as a simple cost-cutter, Procurement can and should contribute more within the realm of Private Equity. Financial engineering is no longer the default means through which Private Equity firms aim to generate value and reliance is shifting towards maximising revenue growth, enhancing working capital and creating higher enterprise value through financial management. Each of these areas represents …

How Brexit could impact European private equity investments

How Brexit could impact European private equity investments

Milan Panchmatia Blog, Brexit, Private Equity

As Europe continues to wait for economic stability to return, Milan Panchmatia considers how the UK’s vote to leave might affect equity markets. While the exact impact of leaving the European Union is still unknown, it is clear that Brexit will affect British and European businesses in a number of ways. Initially, currency fluctuations and volatile conditions are likely to …

European private equity and international expansion risks

European private equity and international expansion risks

Charlotte Wales Blog, Private Equity

When European private equity firms are considering investing in companies that have ambitions to expand internationally, associated ESG risks must be focused on more sharply as part of this strategy, particularly when the targeted markets are in the Middle East, Africa and Indian regions. Investment in some of these less well-regulated markets and industries comes with far greater operational risk …

Responsible investing: Challenges and best practices in emerging markets

Responsible investing: Challenges and best practices in emerging markets

Charlotte Wales Blog, Private Equity

Emerging markets are highly unregulated. While this may provide opportunities for the less scrupulous elements of business, in the majority of cases burning bridges through smash and grab techniques will leave a lasting stain on the reputation of the organisation ensuring any future opportunities are firmly out of reach. Although regulation may be limited, the same behaviours that are legally …

Procurement implications for environmental, social and governance

Procurement implications for environmental, social and governance (ESG)

Charlotte Wales Blog, Private Equity, Procurement

With limited direct impact on the commercial bottom line, environmental, social and governance is still viewed as a concern only for organisations struggling with public perception and looking to build their ethical or green credentials. The reality, however, is that all organisations must now consider the long-term ramifications of ignoring these corporate health assessments, where both unnecessary or unmeasured risk …

Finance Digest: Procurement in European private equity investment – adding value to the boardroom

4C Associates In the press

The era is long gone when Private Equity was heavily reliant on financial engineering to generate the necessary returns from portfolio investments. Over the last decade, European financial market dynamics have meant that Private Equity firms have needed to increasingly focus on improving operational efficiencies of the underlying assets to generate the required returns. Read full article here.

Private Equity International: Value creation through responsible investment

4C Associates In the press

Responsible investing  is increasingly accepted by the private equity industry as integral to good business practice and an essential part of the value creation process. It’s no longer simply a nice-to-have practice, which GPs can choose to adopt, but an expectation. Charlotte Wales, Mark Ellis and Jeremy Smith at 4C Associates explore procurement implications for environmental, social and governance. Order the …

Why procurement has to stop only talking about ‘savings’ and focus on strategic value

Why procurement has to stop only talking about ‘savings’ and focus on strategic value

Jeremy Smith Blog, Procurement

A look at why the procurement  function needs to move beyond pure cost cutting and better publicise the leadership and revenue growth opportunities it can bring to the boardroom. It’s no secret that procurement was one of the few functions to emerge triumphant from the financial crisis. Leading businesses faced with increasingly uncertain forecasts found themselves reliant on optimising cost …

Driving value in in Private Equity though portfolio procurement (1)

Driving value in Private Equity though portfolio procurement

Jeremy Smith Blog, Private Equity

With Private Equity  firms increasingly under pressure to improve operational efficiencies within their assets as a means to drive value, Jeremy Smith considers procurement’s role. All mid-market Private Equity companies recognise the value procurement can bring in terms of sustainable EBITDA improvement, however, the portfolio companies they invest in often lack leverage given their scale in any given market. This …

Private equity and unlocking third party spend

How can private equity portfolio companies unlock value in indirect third party spend

Mike Lander Blog, Private Equity

It is a common practice amongst Private Equity(PE) owned companies to tap into an Aggregator purchasing organisation that could leverage the bulk buying power of the entire portfolio owned by the PE owner. In the cases where portfolio companies are small to medium in size, it is often the case that they do not have indirect procurement departments. As the …

Procurement’s strategic role in private equity investment value creation

Mike Lander Blog, Private Equity

The era is long gone when Private Equity was heavily reliant on financial engineering to generate the necessary returns from their portfolio investments. Over the last decade, financial market dynamics have meant that PE firms need to focus increasingly on improving the operational efficiencies of the underlying assets to generate the required returns. This in turn has seen an increasingly …

Enhancing EBITDA in Private Equity backed Professional and Recruitment Services

Enhancing EBITDA in private equity backed professional and recruitment services

Mike Lander Blog, Private Equity

It would be easy to argue that Procurement activity to deliver EBITDA improvement is the same in any sector so why focus on Professional/Recruitment Services businesses? The reality is, a critical understanding of sector dynamics, company culture and 3rd party cost/sales ratios all play an important part in how savings are prioritised and delivered. For example, the key challenges facing …