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Driving portfolio growth while mitigating risk

INSIGHT ARTICLE

Driving growth while continuously and successfully assessing risk work hand in hand for thriving private equity firms. Maximizing cash flow through smart acquisitions, strategic tax planning and optimized business performance is essential, but so is weighing all the risks and regulatory challenges your businesses might face. An ongoing performance improvement strategy—like a business process improvement plan or a corporate performance management plan—is key to staying on track with growth goals.

This strategy can help examine these questions about your portfolio businesses:

  • Have you assessed the finance functions of your various portfolio businesses and determined gaps, needs and improvement areas?
  • What are the challenges you experience in performing budgeting and reporting activities at the portfolio company level and at the private equity group level?
  • Do you have clear reporting and goal tracking that are aligned with your investment thesis?
  • Do your portfolio companies provide timely reporting of financials and key performance indicators in order for decisions to be made quickly?
  • What are your anticipated future needs related to budgeting, forecasting, reporting, dashboards and more?

Addressing these issues with appropriate planning, systems and workflows can fortify infrastructures, improve forecasting and help you anticipate economic shifts—and allow you to stay on top of your growth trajectory.

Likewise, assessing risks and understanding regulatory compliance requirements are equally as important in your pursuit of business growth. Risks can live throughout the business and at many different levels, from governance processes and data privacy and security to regulatory requirements such as those concerning the Sarbanes-Oxley Act or Payment Card Industry compliance. 

Enterprise resource planning is paramount for growing organizations—especially private equity firms given their diverse portfolios and sometimes disparate operations and systems. Through this planning, efficiencies are developed and risk areas are uncovered and addressed with appropriate measures via technology, specialized planning, processes and other tools.

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Contact us to learn more, or for additional insights on driving growth and mitigating risk.


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Events / Webcasts

IN-PERSON EVENT

Health care and life sciences private equity and finance conference

  • February 21, 2018

RECORDED WEBCAST

Accounting and tax updates for private equity funds

  • January 17, 2017

RECORDED WEBCAST

Private equity and the software industry

  • December 14, 2016

RECORDED WEBCAST

M&A: What to expect in 2017

  • November 16, 2016