July 2024 – Private equity firms need to unlock value from existing portfolios quicker than ever to release the cash required for their next investment and get ROI for investors. The investment horizon for PEs is typically focused on a time-to-value model or synergising value through group capabilities around a capability or business theme.
The successful transformation of a target organisation rests on a strategic approach that marries operational due diligence with the precise execution of a Target Operating Model (TOM). These two capabilities ensure that PEs maximise the most value within their organisational transformations.
Read our paper on maximising value for private equity firms here.
Our Approach
The successful transformation of a target organisation rests on a strategic approach that marries operational due diligence with the precise execution of a Target Operating Model (TOM). These two capabilities ensure that PEs maximise the most value within their organisational transformations.
At Unipart Consultancy, we help PEs to maximise value in two ways:
- Pre-deal assessment of operations (pre-acquisition) – We help our clients assess and understand the scale of the opportunity within the target’s supply chain and operations with operational due diligence.
- Target Operating Model achievement (post-acquisition) – Supporting the PE to develop and execute the target operating model, through the transformation of processes, people and systems in parallel. As well as, ensuring that the TOM is achieved through engaging the business teams to see their value and perform.
Summary
Operational transformation is an integral component of strategic transformation within an organisation. While strategic transformation focuses on redefining the overall direction, goals, and competitive positioning of a company, operational transformation deals with the practical implementation of these strategic changes at the operational level. As PEs spend more in 2024, we expect increased investment in assistance to the operational transformation of an organisation managed by a PE firm.
Unipart Consultancy has been operating for over 30 years and has applied its transformation approach both within Unipart Group, a £1bn revenue global supply chain & performance improvements business, and with clients including JLR, Sky and Volkswagen.