PIP has extensive experience supporting private equity (PE) funds, listed companies and mid- to large-sized private companies with three core transaction-related services.
We have extensive experience in this area having completed commercial due diligence (CDD) on over 70 companies. Our consultants have extensive expertise in mining equipment and services businesses, and in industrial B2B equipment and services businesses and in manufacturing sector. We also have extensive experience in healthcare services, transport and logistics, and fast-moving consumer goods (FMCG).
1. Take a hypothesis-driven, iterative approach in order to maintain focus and ensure an optimal use of time and resources.
2. Utilise industry experts.
3. Base our team at the client’s site or office, or within the target business, wherever possible.
4. Work hard to make a deal work – but we are candid when it doesn’t
5. Prepare a balanced, practical report for investment committees and financiers. Expected outcomes can include:
PIP consultants have assisted a number of PE and listed company owners with turnaround and sell engagements, where we have focused on rapid performance improvement through the relentless focus on three or four key value drivers. We initiate and execute turnaround and sell engagements using the PIP Continuous Improvement toolkit, which involves four key steps:
PIP has assisted many clients with identifying, quantifying and implementing post-merger synergies in order to rapidly create value. For example, in the case of a large merger between two equipment rental companies in Australia, PIP successfully identified synergies in the closing of branches, realising back-office and inventory savings and reducing regional and head office functional overhead in finance, HR, IT, accounts, sales and marketing. We have extensive experience in realising revenue synergies, standardising business models, standardising commissions and many more activities.
Relative to our competitors, PIP's consultants have considerable experience in delivering change and bottom-line results. Unlike our competitors, our people have substantial implementation experience. We understand how organisations work and how proper incentive structures help to drive performance. The chart below shows the increase in earnings before interest, taxes, depreciation and amortisation (EBITDA) for an operating company that PIP helped a Private Equity company turn around.
Our approach includes defining an ideas pipeline with the client team and driving the implementation of the highest value ideas, such as procurement optimisation, implementing yield improvement practices and increasing asset utilisation through improved planning. Lastly, we ensure strong alignment in the team through the implementation of wiring, which involves the putting in place of RARs from the top to the bottom of an organisation and defining clear, practical KPIs.
In my career, I have [witnessed] a lot of consulting work, but the work done by PIP is the best I have seen. It is practical and relates the results of the due diligence to the forecast outlook for the business. It raises key issues, which have been accepted by management. This means that the report will have a lifespan far beyond most consulting reports, which are fairly quickly destined for the bookshelf. ROBERT RADCLIFFE-SMITH