Private Equity & Strategic Investors

Our clients profit from our in-depth understanding of global firms, markets and cultures based on our long experience supporting private equity firms, funds and strategic investors around the world. We provide an integrated strategic, operational and financial view paired with hands-on implementation know-how. Our joint teams of industrial and functional experts follow a structured approach for all services along the investment lifecycle, helping our clients make the right investment decisions. We offer private equity firms, funds and corporate clients a broad range of strategic and operational advisory services stretching across the entire transaction process. We provide management with strategic insights, effective improvements for operations and end-to-end value creation opportunities to enhance their investment decision-making.

Commercial due diligence (CDD) / Vendor due diligence (VDD)

CDD and VDD assess the target firm's attractiveness, including any potential opportunities and risks. We provide buy-side or sell-side clients with a well-structured analysis of key market drivers and industry trends, an understanding of the competitive environment and customer universe, and an assessment of the acquisition target's business plan. In a strategic transaction we also assess the potential synergies between the two companies. In addition, we support private equity players with post-merger integration , drawing on the skills and know-how of our experienced Transaction Services team.

Our consultants have carried out many successful M&A projects on behalf of leading corporations and in close cooperation with corporate finance houses. This gives them a deep understanding of the complete investment process. Depending on the focus of the private equity firm or fund, we can also provide specific industry and functional expertise.

Operational due diligence (ODD)

We can perform an ODD for private equity firms and strategic investors in all relevant transactional contexts, including standalone investments, bolt-on investments and carved-out companies. During an ODD exercise, our consultants benchmark functional KPIs tailored to the business of the firm in question. Our focus is on validating key business planning assumptions for CAPEX, working capital, material costs and margins. The goal of an ODD is to evaluate the target's operational and functional performance and identify improvement potentials and operating risks.

Our consultants can draw on a comprehensive functional analysis toolbox to generate insights for the private equity firm or fund, their choice of tools depending on the business profile of the target company. For manufacturing-focused assets, we offer a Rapid Plant Assessment. This reviews manufacturing data – drawn from the firm's data room and based on physical site visits – to benchmark key operations categories on a scoreboard. The tool outlines the company's performance in each category, and our consulting experts then define improvement levers for operations.

We also have at our disposal a suite of audit questionnaires that can help us quickly identify levers for optimizing a client's functional setup. This allows us to provide specific recommendations regarding overhead costs, the purchasing strategy, the sales model and other functions. For example, our Procurement Excellence team can determine the current procurement comparables and compare them to the company’s spend cube. We can then rate each resulting recommendation in terms of its expected impact and ease of implementation, assessing it in the light of the company’s business plan.

Tech/digital due diligence

In a tech/digital due diligence, we assess the technology capabilities and potential risks for a target company during a transaction process. This includes a comprehensive analysis of the target's technology infrastructure and requirements, digital capabilities and top-line growth potential from innovation. Key components of the exercise include:

Technology assessment: We evaluate the target company's technology stack, including software systems, hardware infrastructure and IT architecture. This helps identify any potential technology gaps, scalability issues or outdated systems that may impact the target's future growth and performance.

Digital capabilities: Our digital experts review the target company's digital strategy, online presence and digital transformation initiatives. This includes assessing the effectiveness of digital marketing, e-commerce capabilities, customer experience and data analytics capabilities. The goal is to determine the target's digital maturity and potential for future digital excellence and top-line growth.

Innovation potential: To evaluate the target company's innovation capabilities and growth potential, our private equity consultants assess its research and development activities, intellectual property portfolio, innovation culture and partnerships with external technology providers. The focus is on identifying any unique technological assets or potential for future technology-driven growth.

Cybersecurity and data privacy: We conduct a thorough assessment of the target’s cybersecurity measures and data privacy practices. This includes analyzing the target's data protection policies, IT security infrastructure and compliance with relevant regulations. The aim is to identify potential cybersecurity risks and data privacy vulnerabilities that may impact the target's operations or reputation.

Technology roadmap: We help the PE firm's top management develop a technology roadmap for the target company. This includes identifying case studies and potential technology synergies, assessing the feasibility of integrating the target's technology with the client's existing systems and outlining the post-acquisition steps needed to achieve successful technology integration and prepare for growth.

Read more about our tech / digital due diligence services

Value creation

The last decade was an extraordinary one for private equity, with deal multiples shooting up 50 to 60 percent between the 2010s and '20s. But now the world has changed. Inflation is still at a very high level, interest rates have made a massive comeback and economic growth is low in many regions.

At times like this, C-suites need a strong consulting partner at their side. Our senior-level private equity advisory service experts have profound experience helping private equity companies, funds and strategic investors create value in troubled waters. We carry out more than 700 successful consulting projects a year and our reputation is second to none – in fact, we have been consistently ranked No. 1 in performance improvement since 2014.

Four key levers can add value to your private equity portfolio companies: commercial excellence, top-line growth, profitability increase and deleverage. We show you how to exploit these levers and create value – with our support, every step of the way.

Using our implementation-based approach, our private equity consultants show you how to actively create value in your portfolio with the help of our proprietary products and services. We support you with consulting services through the entire process, from drawing up a strategic vision and identifying short-term improvement levers to developing a comprehensive value creation plan for medium to long-term development – right through to realizing value through the exit strategy.

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Infrastructure investment

Pent-up demand for infrastructure investment – partly in the wake of the COVID-19 pandemic – makes this a time of extraordinary opportunity for those who boldly target more lucrative rewards. As investors claim their stake in sustainability trends that will shape the whole of society and the economy for decades to come, it is more critical than ever to carefully reassess risks, runtimes and returns. Our private equity consulting team has profound expertise in many areas of infrastructure, including energy, green materials and mobility. Our expert consultants combine this with a thorough functional understanding of transactions and value creation projects. As a leading consulting firm with a wide pool of industry experts at our disposal, we can help you navigate emerging challenges and play a sustainable, profitable role in strengthening the backbone of society, both today and tomorrow.

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Equity story - exit value

Our private equity consulting team supports private equity investors, funds, infrastructure investors and their portfolio companies as well as strategic investors in developing a data-driven equity story to enhance the exit value during the final phase of the investment cycle. Our consulting team can develop an integrated business plan for the PE firm or fund, including specific high-impact actions such as a top-line improvement program, operating cost optimization and industry-specific implementation management ("proof of concept"). We can also advise the management team on the perfect exit timing and the optimal exit channel. Our Transaction Services team can guide our corporate clients through the entire carve-out process . And our experts can assist in mastering the complexity of carve-out processes and ensure business continuity by prioritizing a seamless transition.

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