We Do 3 Things:
1. Conduct a Pre-Close Operational Diligence
- Like a QofE, but with a focus on Operations
- Quantify “how much more will you make when you run it right?”
- Drive initiatives to increase EBITDA and to improve your position in the market.
- Guide your management team to scalability.
- Get rid of the pain.
3. Revitalize Stale or Stagnate Portfolio Companies
- Do you have one portfolio company that requires more thought and effort than all the others combined?
The ProAction Group acts as a resource extension to investors and management teams. We provide operating expertise, resources, and tools to help maximize performance.
Core Functional Capabilities
- Lean enterprise/Lean manufacturing
- Outsourcing/asset rationalization
- Quality systems
- Inventory and materials management
Supply Chain Management
- Strategy development
- Supplier development
- Logistics (freight, warehousing, planning)
- Pricing strategies, processes, and disciplines
- Customer and product profitability
- Channel strategies and management
- Sales & operations planning (S&OP)
- Product development process
Work with your new management team to implement sourcing, lean manufacturing, and other operating quick kills to get ahead of plan in the first 6 months. We will provide the resources to complete the work, allowing your team to focus on strategic plans and future initiatives. Get ahead of plan and play with house money.
After signing an NDA, we will review the CIM and highlight the scope we would address in an operational diligence.
This report provides deal teams information to refine valuations, and sometimes walk away from potentially bad deals. We identify and quantify key operating risks and opportunities. We also identify specific areas of inquiry that will help better understand the prospective investment. This includes determining the validity of management’s assumptions on areas such as revenue gains, productivity changes, capacity, capital expenditures, ability to serve customers, offshore threats, and other areas. Typically, we would have the opportunity for a high-level review of the company, including attending the management presentation, reviewing the data room, and usually obtaining special access to additional company people or operations.
The ProAction Group report identifies and quantifies operational opportunities and risks, at a greater level of detail and with more supporting evidence. We also will confirm operating assumptions and develop plans for post-close success.
We work with management to develop a clear set of priorities, identify key initiatives needed to address these priorities, create actionable plans for each initiative, and ensure the organization has the right resources allocated.
Portfolio Company Assessments
We identify and quantify key improvement opportunities. We then develop specific action plans to realize and sustain the gains.
We work with management to develop specific plans to prepare a company for growth, organically and through acquisition.
We work with management to implement change to a business. The results are fundamental operating improvements which can be measured in financial statements.
Sometimes clients don’t need ProAction to handle project management responsibilities. In these cases, we provide expert people for temporary assignment.
Virtual Operating Partner
We provide complete operating support for fundraising, investment screening, portfolio company improvement, and exiting. We assign one senior operating principal as the point person, and the client gets access to our entire staff, toolkit, and network of professional relationships.
|9-Box – Turn and Earn