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.
Profit Discovery for a Private Equity Investor
A private equity firm was evaluating a software company operating in the medical industry, trying to determine whether it would make a good acquisition target.
The software company had an existing business model, with strong historic market share but revenue growth had stalled. There was an opportunity for a private equity investment to change the business model and unlock latent value within the target organisation.
PCG evaluated the market growth opportunities, how changes in the operating model could deliver cost savings and how changes in the revenue model could improve revenues.
Framework used to identify value creating opportunities for target company
PCG identified the following value creating opportunities in the acquisition target:
- $4m per annum in developer outsourcing
- $2m in new market opportunity with Specialists
- $6m in new market opportunity with Allied Health Providers
- $20m – $50m in incremental revenue opportunity through implementing a different revenue model