A shareholder of a Private Equity (PE) offers way more than an investment to a company. They take over the management of the company and automate it. They have the capability to turn underperforming businesses to generate revenue through strategic planning. But doing so without expert guidance can be tricky.
Any financial decisions cost you a great deal of money. Hence leveraging it to industry experts or seeking strategic advice is crucial when it comes to huge finances. Approaching Private Equity Consulting experts can help you as a shareholder in finding your right portfolio company and increasing their value with expert guidance. Let’s check in detail on how consulting private equity experts will help increase your company’s share value.
Private Equity Consulting Experts Can Help Increase Your Company’s Shareholder Value
Evaluating Opportunities
There is a sea of investment opportunities in the market, but one simply cannot determine if it is a suitable one without research and analytics. The consulting firms calculate, apply their foresight, and advise you on the viable options.
The consulting experts evaluate the right opportunities in the market to determine the right portfolio companies you can invest in. investing in unqualified companies will prove to be futile, thereby decreasing your shareholder value.
Checking with a private equity consultant can help you evaluate your investment opportunity pockets through market mapping to help you make a straightforward decision. The consultants are a team of experts who are ready to help. They are aware of market trends and risks and suggest you the right opportunity after evaluating its financial situation as well.
Value & Potential of a Portfolio Company
Not all companies acquired have the potential to succeed. Numerous factors need to be considered to determine that your investment in a portfolio company is not expended. If you plan to invest in a private equity firm, you will have to analyze the value and potential of the portfolio company to make sure that the best investment options are not lost. You will have to be careful in choosing your portfolio companies and estimate the market position, revenue of the company, industry trends, growth potential, etc., while analyzing the value and portfolio of the company.
Having an external expert opinion will help you reap better investments in the long run, as they are already well vested with the equity. Hence, they can guide you on any problems in investment or acquisition like never before.
A private equity consulting firm does not stop after helping you invest in a high-value portfolio company. After that, the private equity analysts can support you in increasing their value manifold to ensure you get a good return on investments. The consulting company has many experts specializing in domains like growth, pricing operations, finance technology, etc. It employs each expert to take care of that field. Let’s see each in detail.
Growth: The growth experts strategize ways to scale the portfolio company acquired.
Pricing: Consultants compare the market, competitor pricing, supply-demand, and other factors that affect the costing of your products and establish the correct costs based on research and brainstorming.
Operations: Many portfolio companies do not perform well due to operational inefficiency. The consulting companies provide new operation processes which are primarily automated, help prioritize tasks, and bring about a modern methodology for systematic operational processes.
Digitalization: The role of technology is unbeatable to reach top-line growth. The consulting companies reorganize and improve outdated systems. Digitization enhances the productivity and development of the company.
Parting Thoughts
Private Equity Consulting companies also support bespoke fundraising, investor relations, and fund operations solutions. The assistance provided is comprehensive right from level ones like preparing RFPs/RFIs/DDQs, client presentations, factsheet generation, fund monitoring and valuation, and investor reporting. It also supports you right from deal sourcing, opportunity evaluation, portfolio monitoring, and advisory. It also helps your investment side and horizontal support across the middle office and back-office function. Bringing out an experienced external perspective to private equity funds decisions will help it move to the right path. Hiring private equity consultants will only increase the company’s value by bringing in technology to improve the company’s services.
