With the landscape in private equity changing rapidly, we support private equity firms in developing and executing strategies to improve operations through restructuring and growth.
Our deep industry knowledge allows us to deliver perceptive insights and create change, from pre-deal analysis through to acquisition valuation and exit planning.
PCG's unique approach has assisted many of our clients to navigate the structural and financial challenges in private equity and achieve key outcomes in increased profitability.
- Acquisition target screening and valuation
- Due diligence
- Exit planning
- Profit improvement
Profit Discovery for a Private Equity Investor
A private equity company asked PCG to assist in undertaking due diligence for a mining services company. PCG facilitated a thorough analysis of the potential acquisition and its market.
Private Equity Co (PECo) identified MSCo, a mining services company, as a potential acquisition target.
PECo asked PCG to review the company's market operations to scope the potential upside for improvement.
PCG assisted PECo in due diligence by performing an assessment of the following:
- Shape of the industry's profit pool, market landscape and outlook
- MSCo's placement in market, cyclical influences and structural trends
- Detailed assessment of major mining customers and their requirements for MSCo Services.
PCG advised that MSCo was a viable acquisition target with scope for augmentation across its operations.
MSCo's R&D was capital starved and there was a legacy of limited and fragmented investment in the company's infrastructure. There was a large-scale upside for cost savings from acquisition of new technology and growth in the industry.
A second recommendation was the opportunity to bolt on other smaller acquisitions to consolidate the business's position in the marketplace. PCG identified two smaller acquisition targets and developed preliminary valuations on these targets.
PECo proceeded unopposed with the acquisition and, within two years, MSCo's EBITDA more than doubled. MSCo proceeded with the acquisition of one of the targets screened by PCG.