Ha adquirido una empresa de cartera con ineficiencias operativas. ¿Cómo vas a cambiar las cosas?

It’s important to allocate appropriate time to assessing the current status and to spend time with the team to build rapport and get candid feedback. - Data Collection: Review financial statements, KPIs, and business processes. - Interviews: Speak with key stakeholders (C-suite, department heads) to identify pain points. - Process Mapping: Analyze workflows to spot bottlenecks and redundancies. - Benchmarking: Compare performance metrics with industry standards. - Cost Analysis: Identify high-cost areas and evaluate ROI of major expenditures. - Tech & Automation: Evaluate systems for outdated technology or automation gaps. - Identify Quick Wins: Highlight immediate low-cost improvements.

Optimizing a portfolio company with operational inefficiencies begins with a detailed analysis of the value chain and identification of key bottlenecks. Apply Lean methodology to eliminate waste and improve process productivity. Re-evaluate the organizational structure, focusing on eliminating redundant management layers and improving communication. Use KPI tools to monitor and analyze the effectiveness of key business processes in real time. Implementing technology solutions to automate routine operations will reduce costs and improve accuracy. It is also important to assess the quality of management and, if necessary, replace top management with more experienced specialists.

To turn around a portfolio company with operational inefficiencies, implement a comprehensive restructuring plan focused on cost reduction and revenue optimization. For example, KKR's acquisition of a manufacturing firm with $1 billion in revenues involved restructuring operations to achieve a 20% reduction in overhead costs and a 10% increase in sales within two years. Streamline processes through technology integration and workforce training. Reinforce a performance-driven culture with clear metrics and incentives. Enhance profitability by identifying and focusing on high-margin products or services, ensuring sustainable growth and improved financial performance.

As an experienced #PE #CFO, I can say that turning around a portfolio company with operational inefficiencies requires a thorough assessment, clear goal-setting, and a structured approach. I agree with the proposed steps, particularly evaluating the current state, setting measurable objectives, and optimizing processes. Engaging with employees, implementing tailored technology solutions, and providing adequate training are also crucial. I've successfully implemented these strategies in various portfolio companies, driving significant improvements in efficiency and profitability. If you're looking for expert guidance, I'm here to help.

Absolutely; an objective assessment of the finances and processes is crucial- but also a walkabout to get a "feeling" for the place often informs how deep the issues are, what created them, and how they can be addressed effectively.

Eliminating operational inefficiencies in a newly acquired portfolio company begins with a thorough assessment to identify key performance gaps and set measurable objectives. Strategic goals aimed at long-term growth, such as improving throughput or reducing costs, should be established based on this analysis. These goals are then broken down into actionable, short-term targets, with clear responsibilities assigned to each department to foster accountability. Regular progress monitoring and goal adjustments help maintain agility, ensuring the turnaround plan stays on track and consistently enhances operational efficiency.

In our age of rapid technological advancement, almost any acquisition is guaranteed to be behind the times. PE has a lot to learn from small startups, who are reinventing processes from the ground up with little "baggage." These experimental techniques, such as AI-first workflows, can be integrated into larger acquisitions for massive operational gains.

I love this question. Optimise or ReThink? Often, we only consider incremental changes (+10%), but the real value-add comes when calculating the absolute maximum potential performance and identifying the factors which deplete the actual performance. Comparing these factors strategically (and making sure they align together) across the full value chain is powerful

This is our bread and butter at Plocamium. Process optimization means working with the management teams who know the inner workings intimately and then understanding where to place your trust as an investor to consolidate processes by tech or old school management

Technology is core to performing actions efficiently, but there usually is "lost value" to capture before a technology investment—ensuring that the data/parts/decisions (all operations!) are handled effectively, considering everything from maintenance to communications across the whole system. Consider the ease of getting these things right alongside the investments.

Upgrading carefully as to not upgrade for the sake of upgrading but making it all fit within your firms tech stack. There's lots of fragmentation across ERPs and chowing the right one is often a challenge form costing and functionality

Learn which of your employees are the "puzzle solver" archetype and which are of the "operator" archetype. An acquisition is an ideal time to shake things up by nurturing the puzzle solvers within the organization, giving them the ability to take on transformational projects. They are, after all, the ones who have the most experience with the company's legacy issues. Frame the acquisition as a time of reinvention and opportunity rather than cost-cutting.

This is where an investor operator mindset kicks in - or doesn't. Assuming it does, this is where human capital management kicks in and ego steps out