The green transformation of the economy is indispensable. However, it remains a hurdle in terms of financial resources. We believe that private equity, which currently manages around €800 billion of assets in Europe, can act as a catalyst for green transformation and play an important role in transforming grey into green businesses. Find out what real and perceived hurdles remain, as well as strategies to counter them.
Private Equity Value Creation
Four key levers can add value to your private equity portfolio – multiple arbitrage, growth, profitability increase and deleverage
The last decade was amazing for private equity, with deal multiples shooting up 50 to 60 percent between the 2010s and 2020s. But now the world has changed. Inflation is at a record high, interest rates have made a massive comeback and a recession is looming. Investments and value creation are much more difficult right now than they were in years past.
Our team of private equity value creation experts can help you unleash the full potential of your portfolio companies. As early as the transaction stage, we help you as the investor identify value creation initiatives so you can hit the ground running. Once the transaction is signed and sealed, our private equity experts support you with a plan for the first 100 days for value creation. This ensures that your portfolio companies have a robust strategic vision in place that helps you gain vital momentum. After that, a medium to long-term value creation program helps you as the investor identify improvement potential for your assets and across the entire organization
Our dedicated solutions cover four key value creation levers
Multiple arbitrage – increasing the portfolio company's valuation multiple – is a key tool for generating superior returns on your investment during the holding period. To do this effectively you need the right vision, strategy and a rock-solid private equity story, backed up by successful implementation.
We offer two main services around multiple arbitrage for investors: positioning for arbitrage, and carve-out and wind-down. Our expertise, experience, investor-like mindset and proven track record in implementation make us a preferred partner of mid-cap funds and large-cap funds.
Identifying growth opportunities is the key to discovering the hidden revenue potential of your investment and thus unlocking added potential for value creation. Our services here cover the areas of growth strategy, commercial excellence and post-merger integration.
In addition, we have a strong focus on helping portfolio companies come up with disruptive products that can capture new business opportunities. For example, we can help implement a greentech growth strategy for your investment tapping into growth streams related to climate action and ESG.
Improving our clients' profitability is in our DNA. We offer a number of services in this area that take your investment to the next level. The Roland Berger cost-down suite draws on our extensive experience in management consulting projects across industries in the fields of indirect cost and workforce transformation . We can protect your portfolio from the negative effects of inflation with our inflation defense plan. And we offer full support for the management in the vital area of operations efficiency and procurement.
We provide clients with best-in-class financing advisory services based on our extensive restructuring experience, improving the assets and capital composition, identifying refinancing opportunities and supporting coordination with financing partners. We also offer services relating to special situations, such as an independent business review of your investment.
Digital Value Creation
Why Roland Berger?
We currently advise almost all general private equity firms around the globe. This gives us strong ties with the private equity community. Our reputation speaks for itself: We conduct more than 600 private equity projects a year and are consistently ranked No. 1 in performance improvement.
Our holistic private equity value creation approach sets us apart from our competitors. We offer broad industry competence, with consulting teams drawn from experts in our 12 industry competence centers. Our hands-on approach means that we are focused on solutions for the management and for your portfolio that actually work in practice. And we work whichever way suits you as the investor best – remotely or on site, on individual projects or through long-term support, at operational level or advising the C-suite.
In order to support businesses in making the right investment decisions, we developed a five-steps consulting approach.