© 2019 RSM US LLP. All rights reserved.
Create value through smart portfolio growth and optimization
Assessing risk and opportunity helps private equity firms thrive
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.
Contact us to learn more, or for additional insights on driving growth and mitigating risk.
You may also be interested in:
In this video series, private equity experts share insights and experience on how to plan for a successful post-merger integration.
How FFL Partners developed and executed a plan to improve a business facing a highly challenging but opportune market.
Listen and learn how a portfolio company’s value was greatly enhanced by empowering the CFO and team with a better data system.
Equipped with powerful new tools for data analysis, private equity CFOs can now be more strategic and savvy in making business decisions.
Learn about how you can mitigate ERP project risks that can create vulnerabilities, cause regulatory concerns and derail an implementation.
Learn why and how the best value-creation plans are jointly built by the private equity firm and the portfolio’s management team.
Learn how private equity firms can employ valuation processes to meet both the needs of their investors and the regulators.
To maximize shareholder value for carve-outs, private equity firms need to break free of transition services agreements as soon as possible.
Technology is at the core of businesses today. Companies wanting to achieve growth and manage risk must have a solid technology strategy.
Gavin Backos, management consulting director, explains the importance of investing in integrated technology to advance portfolio growth.