Our Approach to Effective Portfolio Value Creation
Each plan that we develop for our private equity clients activates multiple levers—with an emphasis on leaving no stone unturned. BCG’s full-potential plan approach to portfolio company management comprises eight steps:
- Top-line performance, in such areas as marketing and brand equity, channel and account management, pricing, after-sales service, store network management, and product and service innovation
- Operational excellence, in such areas as manufacturing, fixed product costs, and logistics
- Selling, general, and administrative expenses, including increasing efficiency of R&D and sales and reducing cost in general and administrative expenses and procurement
- Organization and processes, for example improving governance and such processes as human resources, finance, and IT
- Finance management excellence, by optimizing capital expenditures and working capital, as well as improving short-term liquidity forecasts
- M&A, including mergers, add-on acquisitions, new ventures, and divestments
- Disruptive changes, such as building innovative business models and launching digital transformation programs
- Environmental, social, and governance (ESG) factors, by incorporating them across investment portfolios
As our portfolio consulting experts build portfolio acceleration plans for clients, we work with the exit always in mind. We determine how to maximize portfolio value creation during the holding period in order to command the highest sale price, with a focus on producing the greatest and fastest impact on performance for optimal portfolio company management.
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Meet Our Portfolio Acceleration Consulting Team
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