A recent survey conducted by Grant Thornton and PitchBook asked more than 170 senior executives at Private Equity firms about priorities for driving growth and operational improvements.
The survey showed that 90% of PE firms use some version of a 100-day plan to accelerate the time frame for achieving desired performance targets. Plans are most often created during the diligence process by an array of people, including operating partners and fund team members. Overwhelmingly, survey respondents mentioned the importance of portfolio company management to value creation and that the plan is often used to engage the team to move the acquired company in the desired direction. This includes steps to be taken to shore up any operational weaknesses before and during the transition.
During those key first 100 days post-closing, PE firms usually make changes to operational, management and reporting systems; working capital lines; information systems; and streamline other processes. They consider cost rationalization, sales channel expansion, potential add-on acquisitions and geographic expansion. This is just the beginning. During the first 100 days, it seems no stone is left unturned as PE firms seek to drive returns. Why? This is when the acquired organization is most receptive to change.
A relationship with a manufacturing consulting firm like Godlan can be critical in this 100 day window. With the ability to rapidly deploy "out-of-the-box" capable software that has a "consumer grade" point & click interface, PE/VC firms can address major software issues (or complete lack of software) in that window of time with minimal disruption to daily operations.
Gaining reporting visibility, ensuring regulatory compliance and correcting immediate critical issues are just a few of the benefits our PE/VC partners enjoy as they work with Godlan to make this 100 day plan a success.