Private Equity

Every project we have worked on, has bought our clients minimum savings of 3:1 return on investment.

Our experience means we are very well placed to make certain that the best can be extracted from an investment’s supply chain to increase profitability.

Our rapid delivery methodology and focused cost reduction approach results in a financially streamlined business when it comes to supplier spend.

For a Private Equity, Procurato is ideally placed to help on two fronts.

 

Pre-Investment


Procurato can support due diligence in reviewing supply chain spend, identifying any dependencies on suppliers, associated risks and potential supply related contractual impact, costs or opportunities. We can do this through:

  • Creating and implementing a procurement strategy to reduce supplier related costs within a programme of clearly agreed, structured and measurable outcomes to enhance profitability through supply chain efficiency.

  • Reviewing and identifying supply chain risks such as dependency on a supplier’s continued service or interdependencies of wider volume where the PE strategy is to only invest in part of a wider business.

  • Assessing effectiveness of existing procurement team structures, their management of supplier related spend to identify any potential operational streamlining to either extract more efficiency or reduce costs.

    This can all be summarised in a report including recommendations and tools to use for reporting of the ongoing activities once a potential investment is completed.

Post Investment 


When engaging with Procurato post investment, we can enhance investment value by streamlining the supplier related spend base and increasing efficiency. The services we provide include:
 

  • Using our spend tool to crunch through supplier spend data to clearly define and itemise spend categories and applying this information to identify and prioritise opportunities to save costs and improve profitability.

  • With the spend data, engage with the supplier base on a rapid programme of activities to run tenders where necessary or/and renegotiate contracts to extract efficiencies and savings.

  • Generate on going reporting of supply chain enhancement through pre-agreed management reports and targets which can assist the PE proactively assess progress.  

  • We can support PEs with mergers by streamlining supply chains and reducing duplication of costs. The same applies when renegotiating contracts to support separation where for example a PE has purchased part of a wider business and requires supplier contract separation. This can also involve matters such as IT and systems related services that an investment requires to operate the business.  

  • Finally, we can provide an outsourced procurement operation to reduce procurement related headcount and instead provide support through cyclical supplier engagements while supporting internal teams on their management of the suppliers.

Key Contacts

Marco Marambe

MD - Strategy, Finance & Business Service

Matthew Parker

MD - Sales, Client Operation & Client Technology