Last year we saw continued strength in the private equity markets, despite some deterioration in deal volume and an increase in the inventory of portfolio companies.
As we are now firmly into the 1st quarter of 2017, I wanted to share with you some of the key themes that we at Maine Pointe believe are going to have the most significant impact on the private equity markets going forward.
Four Key Themes
- A greater focus on operational improvements. Particularly as PE firms playing in the highly- competitive middle market with an interest in accelerating the time-to-exit look for more ways to generate the required returns
- An increase in corporate divestitures. As a result of M&A activity (both platform deals and add-ons) and a focus on strategic core assets in the chemicals, consumer goods and energy industries. This presents an opportunity to support stand-up of carve-outs in private equity
- A greater opportunity for platform integration and process improvements. This is a result of a continuing focus on add-on acquisitions throughout the PE industry
- An increase in pre-acquisition operational due diligence of potential acquisition targets. This is a consequence of a relatively large inventory of portfolio companies readying for exit, coupled with high valuations
In the coming months, we will dive deeper into each of these themes, helping you to identify and accelerate performance improvements remove constraints and, ultimately, increase EBITDA and valuations.
Click here to find out how a PE firm’s investment in Maine Pointe delivered a 60:1 ROI at exit in less than one year.
About Maine Pointe
Maine Pointe is a global implementation-focused consulting firm trusted by many chief executives and private equity firms to drive compelling economic returns for their companies. We achieve this by delivering accelerated, sustainable, improvements in both EBITDA and cash across their supply chain and operations. Our hands-on implementation experts work with executives and their teams to rapidly break through functional silos and transform the buy-make-move-fulfill supply chain to deliver the greatest value to customers and investors at the lowest cost to business. We call this Total Value Optimization (TVO)™.
Maine Pointe’s engagements are results-driven and deliver between 3.5:1-12:1 ROI. We are so confident in our work and our processes that we provide a unique 100% guarantee of engagement fees based on annualized savings. www.mainepointe.com