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Savings potential through due diligence

Optimization of procurement & SCM at Gimv

Gimv relies on well-founded analyses of operational potential when making transaction decisions. Together with valantic, procurement and supply chain structures were specifically examined as part of a due diligence process. The focus was on evaluating efficiency, scalability and savings levers – as the basis for a reliable investment decision.

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About the company

Gimv is a private equity company with over 1.6 billion euros in assets under management and 54 portfolio companies. Together with valantic, it carried out a detailed potential analysis in the procurement and supply chain of a retail company with an annual turnover of 50 million euros. The aim was to identify areas for optimization as part of the transaction review. The identified savings potentials in the mid single-digit million euro range form the basis for value-enhancing further development.

The project

The challenge

As part of the due diligence, specific optimization potential was to be identified for a medium-sized retail company with a turnover of 50 million euros. These served as a sound basis for possible measures to increase value.

Consulting approach

1. Potential analysis – supply chain management

  • Conducting interviews to take stock of the current situation
  • Evaluation of the efficiency of existing processes
  • Identification and quantification of optimization potentials

2. Potential analysis – procurement

  • Structuring and analysis of procurement data for direct procurement
  • Interviews to record previous procurement practices
  • Benchmarking of procurement conditions against best practices
  • Identification of price and process cost levers to realize potential savings
GIMV Consulting Approach

Solutions & results in detail

Together with Gimv, the target company’s procurement and supply chain management were comprehensively analyzed. The benchmarking revealed significant optimization potential in processes and structures. On this basis, specific measures were derived to increase efficiency and reduce costs – with expected savings in the seven-figure range.

Conclusion

The results provided clear approaches for future-oriented further development. This enabled Gimv to identify key levers for greater efficiency and profitability in the target company at an early stage.

Your Contact

Florian Holzmann, Partner & Managing Director, valantic Division Smart Industries

Florian Holzmann

Partner & Managing Director

valantic