Fueling Private Equity Success: A Deep Dive into Q2 2023's Portco Growth and Operations

As deal volumes stayed below average in Q2, our engagement mix remained weighted towards operational improvement and growth strategy projects, working hand-in-hand with client portco leaders to drive greater margins.?A portion of our team continues to sit in interim leadership positions on extended engagements, and diligence efforts have leaned into specific thesis testing to ensure that investments have multiple ways to win.?All the while, our team has found time to work directly with Foxhole portcos on a series of initiatives to drive further growth within our own portfolio.

Q2 Projects Completed

Market and Voice of Customer (VoC) Studies

• Specialized Medical Device Provider?
• GPO Focused on Furniture, Appliance, and Home Electronics Retailers
• Fencing Contractor in the Energy Space
• Managed Transportation Provider for Chemical End Markets?

Operational?Improvement Projects

• Developed various margin improvement initiatives for a commercial security system provider to achieve?EBITDA goals and improve overall performance
• Formulated?initiatives for an aviation MRO provider to meet EBITDA goals, forecasted financial impact, established?timelines, and implemented KPIs
• Evaluated operations of a retail displays manufacturer, including facility consolidation feasibility, to determine value-add initiatives post close
• Led organizational?restructuring of an energy services provider, identified overlap in roles, gathered feedback, and optimized new org structure to facilitate growth
• Provided interim C-Suite level support for a POP display manufacturer, spearheading VCP focused on quoting, estimating, and incentive alignment?

M&A Target Identification

• Compiled add-on targets for a medical equipment distributor, developed target profiles, managed outreach, and conducted DD to facilitate decision-making
• Assisted an?automation service integrator to identify over 1,000 M&A targets in 3 countries, we will?launch the campaign and assist in creating deal pipeline in Q3

• Managed existing deals in the funnel and actively searched for new deals for a US investment holding company
• Generated a Roll Forward Sales report for 2022 and 2023 providing insights into sales performance for a roofing company
• Digitized 400+ embroidery patches daily for a varsity jackets and bags manufacturer
• Consolidated financial statements and developed a budgeting tool to support a client's diligence on a healthcare management company
• Supported a fluid testing company on managing AP and AR, updating customer contacts, and automating voicemail transcription for enhanced efficiency
• Provided assistance to a tubing and fitting distributor through monthly vendor follow-ups, and aligned descriptions of 200+ SKUs for more accurate representation
• Recorded over 100 sales tax exemption certificates in the tax compliance ERP system for a pipes, valves, and fittings manufacturer

• Three potential add-on acquisitions under LOI for CCK Automations?
• Hired Director of Outside Sales and HR Leader for Surplus City, and started operations out of new distribution center in Dallas, TX
• Hired new CEO for Sanitary Solutions, soft opening of 2nd distribution center in Dallas, and nearing completion of 1st add-on acquisition, targeting close by early Q3
• Collaborated with the Strategy Consulting and BPO Team to execute initiatives aimed at improving operational and EBITDA margins of Foxhole’s PortCos:

1. CCK Automations : built model to improve predictability of assembly completion dates, conducted E&O inventory analysis for customer material deposits, built a KPI dashboard on PowerBI for weekly CXO meetings
2. Surplus City : managed supplier database, designed interactive mapping on DOMO,?conducted?price comparison study from competitors, and?assessed inventory holding time of products for strategic planning
3. Sanitary Solutions : developed purchasing model with statistical forecasting, built?weekly KPI dashboard on PowerBI, managed an email campaign to sell?excess inventory,?and facilitated selection process of a new ERP system

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