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Private Equity Portfolio Services – 100 day planning

Private Equity Portfolio Services – 100 day planningThe traditional model of Private Equity deals has changed. The pressure is on from Day 1 for PE Houses to bring new acquisitions up to speed.

Reduced leverage in private equity deals following the market correction has been well documented. As a result, PE Houses have become ever more dependent on their ability to improve operational performance to achieve their investment goals and generate attractive returns.

While this sharp decline in leverage and the ability to create value through financial engineering are well recognised effects of the downturn, there have been a number of related impacts;

  • Intensified competition for small / mid-cap deals
  • Increased operational complexity in investment plans, in particular, a greater number of carve-outs and investment plans based on integrations / synergy delivery
  • A reduced number of high-return deals capable of offsetting underperforming assets
  • An emerging view in the PE community that having an established operational improvement service within the PE firm increases the likelihood of winning deal exclusivity.

These factors have increased the need for PE Houses to have an enhanced focus on the operating performance of portfolio companies and to provide them with an enhanced level of operational support. The 100 day plan is integral to this. 

However, whilst PE firms are making operational specialists the highest priority category for recruitment, many are uncertain of the optimal model to deliver operational improvements consistently across the portfolio. As a result of the above, and as capital availability and deal flow increases, PE houses have a limited timeframe to successfully navigate the process.

Key questions and challenges for clients:

  • At which stages of the investment lifecycle should the operating team be involved (pre-deal, early ownership, mid-life, exit)?
  • How should limited operational resource be prioritised / allocated across the existing portfolio / new investments?
  • What is the optimal model for an operational team (functional, generalist, hybrid structure)?
  • How should the inevitable peaks and troughs in deal activity be managed?
  • How can a robust, effective and repeatable process for improving the operations of portfolio companies be developed in a short timeframe?
  • What is the most effective use of external advisors/partners?

How can we help?

Our specialist team, with our tried and tested methodology and tool-kit and proven track record of designing and delivering 100 Day Plans, work with Management teams to build a productive relationship between the Private Equity House and Portfolio Company Management. We can help your client to;

  • Provide focus and clarity in the first 100 Days
  • Facilitate early workshops with management to gain consensus around goals and expectations
  • Define specific short term actions, delivering quick wins and addressing priority value drags
  • Conduct a full assessment to validate potential opportunities post-deal and scope mid-life projects
  • Refine governance, MI and controls
  • Define KPIs, objectives and incentives tied to results.


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Jason Caulfield
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