Operational Diligence and Transformation for Private Equity Portfolio Companies
However most factories don’t have the needed foundational elements to transform.
Without firm foundations – any improvement built will quickly tumble, so its important to figure out before you purchase the asset whether it has the potential for quick improvement or whether it will take a long time.
It can make the difference between a good deal and a bad one!
But manufacturing assets are complicated – there is a lot more to them than what you can see on a spreadsheet or appears in an ERP system. In many deal situations you don’t have enough time to build a full transformation plan prior to the transaction.
What’s needed is an on the ground assessment from experienced change agent. Someone who’s done many factory transformations and can use pattern recognition in the context of a clear framework to figure out how much improvement potential exists, how long it will take to get and whether its worth it.
“I’m an experienced due diligence operational worker”
I’m a former McKinsey consultant who’s done dozens of factory transformations and countless operational due diligence assessments of production assets. I’ve built a private consulting practice that is exclusively focused on the operational needs of private equity clients.
I’ve worked for some of the biggest names in Private Equity – including multiple engagements with a top ten PE firm. I have conducted operational improvement programs that include:
- Cutting lead time by 2/3rds in a semiconductor manufacturing facility
- Leading a team to enhance the profitability of an industrial facility by greater than $100 Million per year in 3 months
- Cutting lead time from 326 weeks to 17 weeks over a multi-year program in a design process