Get Active in Our Amazing Community of Over 451,000 Peers!

Schedule mock interviews on the Meeting Board, join the latest community discussions in our Consulting Q&A and find like-minded Case Partners to connect and practice with!

Approach for PE cases after the investment is made

Mergers&Acquisitions Private Equity
Recent activity on May 18, 2019
1 Answer
1.8 k Views
Anonymous A asked on May 17, 2019

I came across a PE case that asks to structure the 100-day plan after the PE firm has bought the target company.

What is the best way to structure cases like this where we need to come up with action plans after the investment?

Thanks a lot in advance

Overview of answers

Upvotes
  • Upvotes
  • Date ascending
  • Date descending
Best answer
Anonymous updated the answer on May 18, 2019

Hi there!

The reason why most strategies (80%) fail is execution. I would start by stressing this concept. For sure the PE firm identified a strategy to make the target grow before acquiring it. So, your action plan has two core macro-steps:

  1. Communicating the strategy and the change;
  2. Implementing the strategy.

In terms of communication, it’s important to make everyone in the company aware of the change and committed to it. You’ve to create the momentum and keep it high (eg., through interviews with colleagues, banners on the walls, newsletter, etc.)

At the same time, you have to start implementing your plan. On the one hand, by focusing on your clients, in order to increase revenues, on the other one, by focusing on internal operations and supply chain management in order to improve your cost structure.

This is the general framework I’d suggest you adopt. The specific actions will depend on the strategy proposed by the PE firm.

Best of luck!

(edited)

Was this answer helpful?
2