Value Creation for Private Equity
2022 Lower & Middle Market Private Equity Firm
The private equity firm in this case study holds approximately ten companies in its portfolio in a variety of verticals including building materials, nutraceuticals, and automotive coverings.
When one of the firm’s portfolio companies began having challenges with supplier prices and reliability, the firm recognized that the problem was threatening the company’s overall value. They engaged Forsyth Advisors to perform a comprehensive supply chain analysis for this company, and we sourced and guided them to select a new offshore supplier that saved $1.5 million.
ENTERPRISE VALUE GROWTH
Following the success of the initial project, Forsyth Advisors worked with the firm over the following year to identify and solve unique supply chain issues in five more of its portfolio companies. With our diverse expertise and multi-pronged approach, we maximized EBITDA across the firm’s entire portfolio, driving a total of $50 million in enterprise value growth in less than 12 months.