Private Equity
& Finance
KEPLER Partners support investment funds both in the due diligence and post-acquisition phases in all industrial sectors - automotive, pharma, electronics - and also in distribution or services.
Context
Particularly Complex Today, the Situation Requires in the Due Diligence Phase:
- Strong competition on targets with many private equity players as well as “corporate” players.
- High multiples, often uncorrelated to the real value of companies.
We Observe Participations in Difficulty:
- Business models strongly shaken by more agile, more digital players,
- Resilience undermined by the economic and health crisis,
- Deterioration of margins.
Stakes
Investment Funds: Key Players in Economic Development.
- They support companies and their management in a dynamic of organic or external growth,
- Their interventions may vary in particular according to their majority or minority shareholdings.
The Due Diligence Phase is Crucial for Investment Funds
- It relies on numerous internal or external expertise to challenge the strategy and the Business Plan, measure the risks and identify all possible upside avenues: product / service plan, build up, operational transformation plan, development at the international. The short deadline presupposes a very good knowledge of the sector and a strong expertise in the operational professions of the target.
From the Closing, it is a Question of Supporting the Company and the Management in an Ambitious Objective Plan
- From the first months, a structured transformation plan accelerates the skills development of the teams.
Build-Up Operations are Also Strong Areas of Development
- It is necessary to identify all the opportunities for synergies, to build a robust and effective integration plan with the establishment of the right target organization.
Value Proposition
In Due Diligence Phase:
For Industrial Sectors: Flash Industrial Diagnostics,
- Evaluate the operational performance in our 4 areas of excellence (Innovation, Purchasing, Supply Chain, Operation) of the target and management teams,
- Evaluate the potential for improvement in Ebitda and Cash,
- Challenge the Business Plan and the investment (CAPEX) and maintenance plan,
- Propose a risk management plan and an ambitious action plan aimed at very quickly generating savings and performance leaps
For the Distribution Sector: Synergie Build-Up
- Evaluate the purchasing and supply chain synergies by setting up a black box which guarantees the confidentiality of data for each of the parties,
In Post Acquisition Phase
Deploy Initiatives Aimed at Improving Business Performance:
- For industry or service, a few examples: management support in the face of the crisis, Ebitda and Cash optimization plan, industrial and supply chain master plan, change management, build-up integration, IA & Machine Learning.
- For distribution, a few examples: synergy plan support, preparation of supplier negotiations, implementation of GMROI, steering of Category Management, etc.
Business Cases
References
