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Private equity consulting: increasing the value of your portfolio companies

Supply Chain & Procurement

Considerable efficiency and savings potential can be identified in supply chain management (SCM) and procurement, which have a significant impact on company value. These play a central role for portfolio companies both in the due diligence phase and after a takeover – whether through the realization of cost reductions or the optimization of structures for sustainable value enhancement.

Warehouse staff looking at laptop while working.

Scaling efficiency. Increase value. Minimize risks.

Our extensive expertise and in-depth experience in the optimization of supply chain and procurement processes create the basis for significantly increasing the value of your portfolio companies.

>50

Successfully completed private equity projects

>15

Industries in which we have already successfully supported clients

>8%

Average savings in successfully completed projects

We provide support as early as the due diligence phase with a sound analysis of procurement and SCM structures in order to provide a reliable basis for investment decisions. To this end, we focus on strategic levers such as the digitalization and optimization of procurement and supply chain processes, intelligent inventory management to reduce capital commitment and the development of robust supplier strategies. Through the targeted use of data-based analyses and strategic bundling effects, we not only increase efficiency, but also realize long-term and measurable value enhancement for your portfolios.

Our approach - from due diligence to value creation

Our consulting team analyzes the current performance status of procurement and supply chain management and compares each component, including relevant sustainability aspects, with industry-specific best practices. We identify potential for value enhancement and optimization as well as risks in procurement and supply chain management in order to ensure operational success in the short term and increase your company value in the long term.

Due diligence

During the purchasing process, we create a comprehensive overview and provide you with clarity about the performance status of SCM and procurement as quickly as possible – also taking into account relevant sustainability aspects.

We quickly assess both existing risks and potentials, particularly with regard to a possible increase in value, which are of particular importance to you as the buyer. The identified optimization potentials are transferred into a roadmap, which is the prerequisite for short-term implementation in the value creation phase.

Value creation

After the acquisition, we support the implementation of the measures defined in the roadmap.

On the one hand, we focus on quick wins that can be realized in the short term and quickly have a positive impact on the business figures.

On the other hand, we implement long-term measures that sustainably increase the company’s value and secure its long-term competitiveness.

Due diligence

Clarity and transparency before the acquisition

Based on the publicly available data provided by the vendor, the performance status of the SCM and procurement organization is reviewed. If possible and the framework conditions allow, we supplement this analysis with interviews with relevant stakeholders in order to gain further insights into processes, structures and optimization potential.

Our experts precisely quantify and evaluate the identified value enhancement potential and risks so that you can make well-founded decisions.

Due diligence procurement

Based on the procurement dimensions, awareness of the relevant optimization areas and risks is raised.

Due Diligence Supply Chain Management

Based on the SCM Integration Framework, the relevant elements of supply chain management and production are examined in order to quickly identify optimization levers and risks.

Sustainability due diligence

Potential risks and potentials in the area of sustainability are identified on the basis of the Sustainability Framework.

Angesteller steht in einer Fabrikhalle mit einem Laptop auf dem Arm

Optimization potential as well as economic, legal and financial risks can be identified using continuously developed frameworks.

As part of due diligence (DD), we support you in the areas of procurement, supply chain management and sustainability in the following areas:

  • Checking requirements: Together, we define your catalog of requirements and check whether the target company meets your requirements in the areas of SCM, procurement and sustainability.
  • Identification of value enhancement potential: We identify operational value enhancement potential in SCM and procurement through a detailed analysis of the current cost structure and processes
  • Identification of operational risks: We analyze the documentation provided and use our industry experience to identify potential operational risks.

Value Creation

Short-term efficiency gains and sustainable competitiveness

To implement quick wins, we use targeted savings levers such as price/process cost levers as well as volume bundling and quantity levers so that your portfolio benefits immediately from improved margins. In order to realize these potentials, we support you in negotiations or tenders and develop tailor-made value creation strategies that go beyond short-term efficiency gains and build sustainable competitiveness.

In order to achieve a long-term increase in the value of your company, we provide you with comprehensive support in areas such as the coordination of procurement and distribution logistics, the tendering of various requirements and the further development of the procurement organization.

Value Creation procurement

Optimization projects are carried out along the procurement dimensions to increase the company’s profitability.

Value Creation Supply Chain Management

Based on the SCM Integration Framework, the relevant levers in supply chain management and production are activated by valantic in optimization projects.

Value Creation Sustainability

Sustainability measures are defined, prioritized and implemented on the basis of the Sustainability Framework.

Shot of two factory managers working together in a warehouse

Based on continuously developed frameworks, companies can carry out targeted optimization projects in order to increase their profitability through suitable levers in procurement, supply chain, production and sustainability.

To ensure sustainable value creation, we support you in the areas of procurement, supply chain management and sustainability in the following areas:

  • Development of SCM, procurement and sustainability strategies: We work with you to develop a specific SCM, procurement and sustainability strategy that is in line with your corporate strategy in order to support a long-term increase in the value of your portfolio companies.
  • Carve-out support: We support a smooth carve-out of the SCM and procurement department from existing structures to ensure seamless transitions and optimal operational efficiency.
  • Working Capital Management: We optimize working capital through efficient management of inventory, receivables and payables to increase liquidity and improve return on investment.
  • Process digitization: We explore the use of technology to automate and simplify supply chain and procurement processes to reduce costs, save time and increase transparency.
  • Performance monitoring: We analyze and monitor performance indicators in supply chain, procurement and sustainability to increase efficiency and maximize value for your portfolio.

Private equity consulting from valantic

Increasing the value of your portfolio companies

Our private equity consulting is characterized by a structured approach that starts with a thorough due diligence review with a detailed assessment of potential and risk. Based on this, we derive targeted optimization measures and implement them efficiently in order to create added value for your company in both the short and long term.

Take the first step towards increasing the value of your portfolio companies and let’s talk about your challenges.

Contact us via the contact form or speak directly to our experts.

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

Florian Holzmann

Partner & Managing Director

valantic