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 purchasing, 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.
Scaling efficiency. Increase value. Minimize risks.
Our extensive expertise and in-depth experience in the optimization of supply chain and purchasing 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 purchasing 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 purchasing 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 purchasing 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 purchasing 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 purchasing 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 purchasing 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 purchasing
Based on the purchasing 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.
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 purchasing, 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, purchasing and sustainability.
- Identification of value enhancement potential: We identify operational value enhancement potential in SCM and purchasing 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.
- Maturity assessment: With our maturity check framework, we evaluate the current performance level of the procurement department and provide you with sound insights for strategic decisions.
- Identification of potential cost savings: We identify quick wins on the procurement side as well as medium and long-term savings potential and show you feasible alternatives in order to make the best possible use of the savings potential.
- Optimization potential in the purchasing organization: We identify optimization potential in the organizational structure, streamline purchasing structures, accelerate processes and increase the efficiency of purchasing.
- Maturity assessment: We evaluate current supply chain management processes, technologies and competencies in comparison to industry standards.
- Opportunity and risk analysis SCM: We assess the strengths and weaknesses of the supply chain to identify opportunities for improvement and minimize risks such as supply bottlenecks or quality issues.
- Identification of potential savings: We analyze all segments of the supply chain to identify cost reduction potential through efficiency improvements or negotiations and sustainably increase your EBITDA margin.
- Assessment of ESG compliance & regulatory requirements: We analyse compliance with relevant sustainability requirements and ESG criteria along the supply chain in order to identify and minimize risks from legal requirements such as the Supply Chain Sustainability Act (LkSG) or the EU Taxonomy at an early stage.
- Determination of carbon footprint & resource efficiency: We assess emissions along the supply chain (Scope 1-3), analyze energy efficiency in procurement and logistics processes and identify potential for reducing the ecological footprint.
- Risk assessment of sustainable supply chains & resilience: We identify climate-related, geopolitical and resource-related risks in the supply chain and develop strategies to minimize risks. Through sustainable sourcing, resilient supplier strategies and alternative transportation routes, we increase the resilience of the supply chain, which ensures the continuity and competitiveness of your portfolio companies.
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 purchasing organization.
Value Creation Purchasing
Optimization projects are carried out along the purchasing 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.
Based on continuously developed frameworks, companies can carry out targeted optimization projects in order to increase their profitability through suitable levers in purchasing, supply chain, production and sustainability.
To ensure sustainable value creation, we support you in the areas of purchasing, supply chain management and sustainability in the following areas:
- Development of SCM, purchasing 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 smoothcarve-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 purchasing 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.
- Realization of savings: We realize cost savings through strategic initiatives such as volume bundling or process optimization, which directly contribute to increasing the profitability of your portfolio companies. Our negotiation management maximizes savings potential and ensures optimal financial results.
- Reorganization of the purchasing department: We restructure and improve internal purchasing procedures in order to streamline processes, shorten decision-making paths and increase operational efficiency.
- Adaptation of negotiation strategies: We develop and implement adapted negotiation tactics and methods to achieve better conditions and reduce supply chain costs.
- Optimization of supplier base: We improve quality, costs and delivery reliability through the selective choice and continuous evaluation of suppliers, thus ensuring the competitiveness of your portfolio companies.
- Resource management: We minimize overall costs and maximize the productivity of your portfolio companies’ supply chains by effectively allocating and utilizing resources.
- Establishing new supply chains and warehouse locations: We develop and establish optimized supply chain structures and strategically positioned warehouse locations to improve your portfolio companies’ delivery capabilities and increase market reach.
- Risk strategy implementation: We implement measures to identify, assess and mitigate supply chain risks to prevent potential disruptions and strengthen supply chain resilience.
- Sustainable procurement strategies: We integrate sustainability criteria into the purchasing processes of your portfolio companies, optimize material and supplier decisions based on environmental and social standards, thereby reducing risks and costs in the long term and improving your ESG rating.
- Decarbonization: We identify emission drivers in the supply chain and implement targeted measures to reduce CO₂ emissions.
- ESG compliance and sustainable supplier development: We establish effective ESG controlling, ensure compliance with regulatory requirements and continuously improve environmental and social standards for resilient, sustainable supply chains.
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