Optimizing value through acquisition and deal flow
For most businesses, supplier costs represent 60% – 70% of revenues. For investors this means that external costs have a significant impact on top and bottom line business performance as well as acquisition and sale price.
At Proxima, we work with PE firms to profile and accelerate benefits delivery from supplier costs. This helps our clients hit the ground running, speed up interest pay down, and optimize EBITDA on exit. We also build functions to run in-life management and value delivery where there’s no procurement or a fledgling capability.
Specialist Procurement Solutions
To accelerate results in your portfolio, we deploy procurement specialists with real-world experience in the sector and an understanding of the dynamics of investment lifecycles. This brings impetus and fresh insights from the outside, explaining how other organizations have faced similar challenges.
We work closely and collaboratively with you, immersing ourselves in your world to understand your needs and deliver fast and sustainable impact. We help organizations by;
- Optimizing supplier expenditure and outcomes
- Creating future-fit procurement strategies and functions
- Enabling teams with the best capabilities and insights
- Delivering complex transformation and change programs
In a world where financial health is so critical to investment performance and outcomes, enhancing procurement is often an accelerated way of paying down interest, driving EBIDTA improvement and optimizing exit value. Every portfolio business faces different challenges, so speak to our specialists today about yours.
See how we help businesses and brands perform at their peak through procurement.
With relatively cheap borrowing costs and high-returns from sovereign wealth funds, we are forecasted to see a strong deal flow in the immediate future as investment firms spend an expected $2.5tr of funds. That said, there are uncertainties in the market, in particular global trade discussions and the future relationship between the UK and Europe. There have also been numerous recent talent moves between firms. For investment managers the procurement value proposition is an increasing tool of choice to accelerate financial performance through: Pre-acquisition savings assessments, using external MI and expertise to profile likely cost improvement quantum and speed. Opportunity Assessment and Cost Reduction, helping portfolio companies to quickly and sustainably optimize costs and increase EBITDA. In-life management, running procurement as a service to build the sustainable infrastructure and commerciality that makes for a better business.