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.
Procurement improvement is a low-risk, high ROI area of focus for PE-backed companies seeking to maximize shareholder returns.
Procurement solutions tailored to your challenges
We are practitioner-led. Our people bring real-world industry experience and adopt a hands-on approach to the challenges and opportunities within Private Equity. Prevalent in the market, with leading brands trusting Proxima as their procurement partner, we bring fresh, relevant, actionable insight from across the industry and beyond.
Cost transformation can be addressed quickly and at any stage in the investment cycle, creating rapid and sustainable value. This will result in increased cash flow and improved EBITDA, which will have a material impact on investment returns by contributing to a higher exit value and reducing debt.
We help organizations by;
- Developing and implementing procurement plans and strategies.
- Upskilling procurement teams to better position you for future success.
- Accelerating time to benefit through expert capability and industry experience.
- Leveraging robust change management to ensure what we do sticks.
With constant shifts in consumer behavior, value chain dynamics, and regulation, Procurement becomes a critical role in ensuring business not only survive in the Private Equity landscape, but also thrive
INDUSTRY INSIGHTS
Over the last decade, low-wage economies have driven fierce competition, launching all-out price wars on established players, with numerous losing market share. However, technological advances are enabling a new breed of industrial organization to emerge.
Organizations that effectively embrace and leverage digital, automation, and innovation will be set to retake the advantage.
The workforce behind these organizations is highly skilled, and the supply chain is critical and precise; labor shortages and supply chain disruptions call for investment and resilience as priorities.
