Improve returns by applying the private equity lens
Profit leakage
Nine out of ten companies lose a portion of their profits without even noticing. On average, this profit leakage can reach approximately 8% of revenue. Entrepreneurs may be leaking profits for a variety of reasons. Frequently, this has to do with pricing. Every business has certain clients whose average rate falls below the standard commercial norm. But there are also gains to be made in the areas of procurement, productivity, cost management, staffing and receivables management. Whether or not a business is thriving, it has always room to improve or grow.
Benchmarking and best practices
We rely on our expertise and know-how from the last quarter century of valuing and selling businesses in the financial and business services sectors to assist entrepreneurs in recognising prospects and areas needing development. Our approach involves benchmarking your performance against key results drivers (KRDs) and market-specific best practices to ensure optimal outcomes for your business. This analysis provides a valuable insight into your performance and position vis-à-vis your competitors.
Improving your profitability in four steps
(afbeelding rendement)
The marching route to new profits
We benchmark against the KPIs to estimate the potential profitability improvement. We then work with you to develop a plan with a clear roadmap to increase the profitability of your business within six to twelve months. This roadmap includes specific, measurable, acceptable, realistic and time-bound (SMART) measures for each KPI. With the aid of a management information dashboard (the size of a single A4), we discuss your progress with you on a monthly basis. We limit ourselves to the approximately five to six KPIs that often account for 80% of the results.
Demonstrable results through a private equity approach
The performance of private equity investors has long been a source of inspiration for many businesses. Therefore, for our project-based strategy that prioritises growth and profits, we draw on our understanding of how private equity firms operate. Combining the successful ingredients from private equity practice with entrepreneurs’ courage to look in the mirror is a proven method for achieving impressive results. In our experience, the average potential for improvement amounts to around 5% of annual revenue. Therefore, the investment is more than recouped by the increase in profits. We will be happy to help you enhance the value of your business. Do not hesitate to contact us for a no-obligation consultation.