Increasing Value Through Operations

Buyout firms create value by finding, assessing, and closing good opportunities and then working with management to make companies more valuable. In that light, we thought you might benefit from taking a look at some data reflecting where our clients have been active using our services. Here is a summary of ProAction’s 2007 business, highlighting the most common types of projects.

By Sector:

Client Type:
Private Equity: 78% PE is up slightly from 2006, reflecting our continued focus on tailoring our services to these clients.
Corporate: 22% Corporate clients valued our implementation expertise, as well as strategic introductions to PE firms.
By Investment Stage:
Pre-acquisition: 15% Deal flow slowed down considerably in Q3 and Q4 with our larger clients. Lower mid-market clients continue to be active.
Post-acquisition Implementation: 85% Acting on good companies to help them perform even better.
Consumer Products: 23% Sales & Operations Planning, sourcing, logistics, and manufacturing were most common.
Manufacturing: 55% Lean, Pricing, SKU rationalization, Sales & Operations Planning, and sourcing were most common.
Distribution: 11% Logistics, pricing, Sales & Operations Planning, and supplier management were most common.
Business Services: 11% Marketing and Lean were the most common themes.
By Functional Type:
Marketing/Commercial Operations: 19% Pricing, Sales & Operations Planning, SKU rationalization, customer segmentation, and sales force effectiveness were most common.
Manufacturing: 29% Lean transformations, asset rationalization, offshoring were most common.
Supply Chain/Logistics: 28% Sourcing of complex categories, supplier development, PacRim sourcing, and logistics were most common.
Combination/Other: 24% Many projects don’t fit neatly into one functional silo.

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