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 …