What Does Private Equity Need from a Consulting Partner?

Private equity (PE) firms require confidence, reduced risk, and streamlined access to insights and expertise to support successful bids, effective growth strategies, and maximizing returns upon exit.

Commercial Due Diligence Overview

Top priorities for private equity firms include choosing the best opportunities and minimizing surprises. Value Driven Solutions (VDS) supports these priorities through a meticulous strategic commercial due diligence process.

How VDS Helps

VDS’s approach to strategic commercial due diligence equips our clients with essential information to make informed investment decisions. We provide thorough, fact-based analysis addressing the target’s crucial commercial and operational issues. For each opportunity, we emphasize value creation by analyzing the market landscape, obtaining customer insights, evaluating competitive dynamics, auditing operations, reviewing business plans, and crafting forward-looking value enhancement strategies. Our methodology expedites the due diligence process, maximizes value, and mitigates buyer risks, setting the stage for structured ownership and effective exits.

We use a refined strategic commercial due diligence process to deliver the independent validation needed for private equity firms to confidently make investment decisions. Our approach includes rigorous market dynamics analysis, in-depth interviews with customers and market participants, and competitive landscape evaluations to pinpoint opportunities and risks, confirm investment theses, and prepare for exits. Our reputation is built on challenging management plans with objectivity and deep industry knowledge.

Key Client Questions

Clients aiming to maximize acquisition value should consider:

• What are the evolving market dynamics?
• How well do customers’ needs align with the target’s value proposition?
• How strong is the target’s competitive position?
• What cost and revenue synergies exist with current activities?
• How achievable is the business plan? What are the opportunities for outperformance, and what are the key downside risks?

VDS’s commercial due diligence process focuses on these questions to ensure clients can proceed with confidence.

Examples of VDS’s Work

Here are a few examples of how VDS’s commercial due diligence has helped clients create value:

1. A private equity firm assessing targets in the emerging biotech sector received detailed insights from VDS, leading to a successful acquisition.
2. VDS evaluated the market resilience and growth potential of a high-end consumer electronics brand for a private equity client, which helped in acquiring and later selling the brand at a significant profit.
3. Our thorough assessment of a leading industrial components manufacturer influenced a client to adjust their bid, resulting in a more favorable acquisition deal.
4. We helped a client recognize and capitalize on market opportunities for a specialized healthcare services provider, facilitating substantial growth and profitable exit.

Portfolio Company Value Enhancement Overview

Private equity succeeds when portfolio companies thrive. The key to realizing potential between investment and exit involves refining strategy, enhancing operations, building leadership, and delivering profitable growth.

How VDS Helps

VDS draws upon extensive experience to guide portfolio companies in refining strategic directions and stimulating growth. We help management streamline core processes, optimize manufacturing and support operations, and enhance supply chain effectiveness. Our strategies boost sales force performance, refine pricing, and cut costs.

Key Client Questions

Management teams should ask:

• How can commercial performance be enhanced, e.g., by refining go-to-market strategies or improving sales force effectiveness?
• What are the opportunities for expanding margins through pricing strategies and customer segmentation?
• How can the business footprint be optimized to enhance supply chain performance and reduce operating costs?
• What bolt-on acquisition opportunities exist to strengthen market positions or expand geographic and product offerings?

Vendor Due Diligence Overview

The ultimate aim for our PE clients is a successful exit, supported by VDS’s comprehensive vendor due diligence process. Our vast experience in transactions and strategic consulting across sectors enables us to offer a well-structured and efficient sales support system.

How VDS Helps

We provide an independent outlook on market prospects and competitive positioning, engage with market participants to enhance the business's value proposition, and refine management's business plans. The result is a comprehensive report that addresses buyer concerns and highlights potential upsides.

Summary

Value Driven Solutions is a global leader in management consulting for private equity, offering expertise and insights that empower PE firms to achieve superior investment returns. Our strategic due diligence, portfolio value enhancement, and vendor due diligence services are tailored to meet the unique needs of the largest PE firms worldwide, ensuring our clients are well-equipped for success in their investment endeavors. Visit our website at VDS Consulting Group.

Contact us today:

772-722-8811