Private Equity Value Creation – Focus on Operational Improvement

A trend toward value creation based on operational improvement at the portfolio level has risen out of the current economic climate and credit crunch.  Private equity groups are focused on creating value within their portfolio investments through strategic, financial and operational initiatives.  It is now evident that significant increases in enterprise value are being realized through business process optimization and operational improvements.

The key operations value drivers for the private equity industry include:

  • Decreasing portfolio companies operating costs through business process optimization
  • Maximizing operational insights into portfolio companies
  • increasing profitability of portfolio companies through implementation of industry best practices
  • Increase valuations on the sale or divestiture of private equity holdings

The itelligence private equity value creation team coordinates access to various SAP organizations around three pillars to support private equity groups along the value creation journey.

  1. Operations benchmarking studies help determine the high-yield strategies that provide the maximum growth in enterprise value with the fewest initiatives to focus discussions between private equity groups and management teams, maximize enterprise value through improved operational insight and portfolio level analytics and provides guidance in the development of total cost of ownership plans.
  2. Accelerated Packaged Industry Solutions include best practices packages developed over years of successful implementations that help significantly reduce implementation time and cost and are offered in a hosted delivery model to reduce capital expenditure and optimize IT operating costs.
  3. Synergistic Value enables best practice sharing across the portfolio and streamlines IT migration and consolidation.

For more information on how to take advantage of the itelligence private equity value creation services, please contact Dave Noonan at

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