Beckway Insights: Value Creation Strategy
In the current environment of slower economic growth and higher cost of capital, private equity investors face headwinds with their portfolio company performance- both topline expansion and cost controls.
We see the continued industry trend that de-emphasizes financial structuring in favor of multiple expansion and operational factors. Procurement is a value creation lever that can have a meaningful impact on these key factors through costs reduction, process optimization, quality improvement, and supplier risk management.
Portfolio companies that have yet to tackle procurement as a strategic value creation lever should consider an assessment and benchmarking of spend and procurement processes. This will, in turn, lead to a Procurement Transformation Plan and implementation of the plan maximize the value of the function.
By focusing on these strategies, private equity firms can significantly enhance the value of their portfolio companies through improved procurement processes, leading to higher EBITDA and more attractive exit opportunities.
Now is the time to start your procurement transformation journey and drive impactful value creation. Contact Beckway’s Procurement practice lead, John Bradshaw, and visit our website for more information: https://lnkd.in/eKPmU5p3