Private Equity
Evaluating deal opportunities and unlocking value from portfolio companies
In the new millennium, private equity capital has become one of the most powerful forces shaping the mergers and acquisitions environment. However, a tighter credit market and the decline in the availability of low-cost debt financing has forced private equity and buyout firms to employ more of their own equity capital in each transaction.
In order to achieve historical returns on a larger invested capital base, private equity firms have had to become much more rigorous in their target selection and evaluation processes. Each opportunity must have the potential for significant value creation as more and more of the firm's equity capital is utilized. As the need to improve the odds of success increases, many private equity firms have come to rely on the industry, functional and/or operational expertise of experienced third-party advisors.
Bridge provides assistance to its private equity clients at every stage of the transaction process. Our experience and expertise spans from industry and sector analyses to strategic and operational due diligence through to post acquisition integration, growth plan execution and, ultimately, exit planning.
In assisting you with private equity opportunities, Bridge can provide a proven, structured approach to help you with the following initiatives:
- Evaluating the target's industry and market growth potential and outlining the forces likely to influence market growth over time
- Assessing the target's current competitive position and ability to take advantage of future growth opportunities and ward off potential threats
- Analyzing the target's financial performance and likelihood of achieving pro forma forecasts
- Evaluating the current customer footprint of the target firm, and identifying challenges preventing the attraction of a broader customer base
- Examining the current product mix and alternative product and product bundling opportunities that could potentially increase revenue growth and profitability
- Quantifying, planning and realizing cost savings opportunities or other synergies between the target, the private equity firm and any of the firm's other holdings
- Benchmarking target processes against industry best practices and identifying and implementing opportunities to drive profits through process optimization and/or outsourcing
As a partner in the transaction process, Bridge brings a rich set of capabilities, experience and intellectual capital to the effort, including: (i) a structured approach to strategic and operational due diligence which focuses on the size and growth of the target's primary market(s), the target's competitive position within those market(s) and the opportunities available to the target for sustained competitive advantage; (ii) a detailed description of the key value drivers associated with the target's business model, a quantification of how those value drivers impact shareholder value and how they can be improved over time; (iii) a rigorous quantification and prioritization of the potential revenue and cost saving opportunities available to the acquirer; (iv) the development of a value capture plan with specific initiatives, action plans, responsibilities and performance measurement checkpoints; and (v) the management and execution of a number of post transaction strategic and operational initiatives.
As a general management consulting firm, Bridge has experience and expertise in a vast number and of industries and functions and can provide a universal perspective on the value creation possibilities available from an acquisition.
