In the hyper-competitive environment for deal making, private equity enterprises with a demonstrated track record for helping their portfolio companies succeed are winning. These leaders know from experience that capturing value through procurement initiatives is a spear tip that can bring rapid, measurable results that strengthen relationships and set up future wins.
From our many long-standing partnerships with private equity clients, Impendi is intimately familiar with the lifecycle of the deal and sensitivities needed when introduced into a relationship. We are primed to get wins quickly and build capability within the target so they sustain the enterprise value created.
Case study: Large Private Equity Portfolio
A private equity firm with $90BN AUM identified a need for strategic sourcing, procurement analytics, and execution services for procurement value capture among its portfolio companies.
The Approach
From insights generated by operating partner interviews, stood up a dedicated team of strategic sourcing experts to provide ongoing services to 50+ portfolio companies.
Impendi’s ‘Cube of Cubes’ Cross-Portfolio Analytics provided visibility into spend, a repeatable process for classification, and a foundation for identifying leverage within the PC portfolio.
Performed multiple portfolio company Spend Diagnostics to find and prioritize cost take out and value capture opportunities.
Delivered customized implementation assistance to 20+ value capture engagements utilizing Impendi’s Realized Savings Tracker, Contract Compliance Analytics, and Cash Release Analytics.
The Results
Find – From $40BN in actively managed annual spend, prioritized leverage within the portfolio and identified hundreds of executable opportunities.
Get – Value capture projects spanning a growing number of portfolio companies have realized $350MM in total savings, adding $4B+ of enterprise value for the client.
Keep – Installed a unique suite of Value Capture Analytics as a “leave behind” to help portfolio companies find, get, and keep more savings.
Case study: Investment Management Company
A leading alternative investment management company engaged with Impendi to provide comprehensive procurement value capture services across their portfolio of investments.
The Approach
Deal Due Diligence services provided rapid spend benchmarking and sizing of procurement opportunities by Impendi’s sourcing experts.
Assembled a dedicated team and account management to perform ‘Cube of Cubes’ Cross-Portfolio Analytics and implement savings opportunities across the portfolio.
Assessed the maturity of the portfolio company procurement organizations and developed action plans to transfer tools and skill sets so the function could stand on its own after we left.
The Results
Find – Assessed procurement opportunities at ten different companies across the portfolio identifying more than $100MM in savings opportunities.
Get – Supported client teams with sourcing execution services for five portfolio companies leading to $45MM+ of realized annual savings.
Keep – Supported procurement organizational building activities at three portfolio companies including hiring a new CPO, training a category manager team, and installing best-practice purchasing processes.
