PRIVATE EQUITY CONSULTING

What does private equity (PE) need from a consulting partner? Increased confidence, reduced risk, easy access to insights and experts, all in support of positive outcomes — successful bids, tangible growth plans, and maximizing returns on exit. For three decades, TNG Consulting has worked alongside our private equity clients to provide comprehensive support across the full transaction cycle. Our support ranges from identifying attractive companies to commercial due diligence, portfolio company value growth, and exit support. Today we are one of the largest and most experienced strategies consulting firms serving private equity firms. 

Our work with PE draws on our expertise in business strategy consulting, performance improvement advice, global reach and deep industry knowledge. We deliver forward-looking strategic insights with the singular aim of helping clients achieve superior investment returns.

Private equity firms typically require a fast turnaround in short timeframes, and our ability to consistently deliverobustlyst, analytically informed insights in fast-moving market conditions sets us apart from other consulting firms. Our transaction support includes exceptional responsiveness and support across a range of transactions from multibillion-dollar deals to mid-market and growth capital investments. 

We work with a wide range of PE clients, and they tell us that they value our ability to provide rapid access to insights based on our experience in strategy work in the relevant industry and perspective from other related markets around the world.

Two imperatives are near the top of every private equity firm’s priority list: selecting the right opportunities and avoiding surprises. TNG supports both through our strategic commercial due diligence process.

How we support

Our approach to strategic commercial due diligence helps inform our clients’ investment decisions. We provide independent, fact-based analysis regarding a target’s most pressing commercial and operational issues. Within each opportunity, we focus on value creation by conducting a deep analysis of the market landscape, securing the customer’s perspective, assessing the competitive dynamics, auditing operations, reviewing the plan for the business, and developing a go-forward value enhancement program. Our approach accelerates the process, maximizes value, and reduces buyers’ risks, thereby framing the acquisition for well-structured ownership and eventually, an efficient exit.

We use a well-honed strategic commercial due diligence process to deliver the independent validation required for private equity firms to make investment decisions confidently. We combine rigorous analysis with a fact-driven assessment of market dynamics. We conduct in-depth interviews with customers and other market participants and evaluate the competitive landscape to identify opportunities and risks, validate our clients’ investment theses and prepare for exits. We are known for challenging management plans based on objectivity and deep industry knowledge.

Key client questions

Clients seeking to maximize the value of acquisition should ask:

• What are the evolving market dynamics?
• How well do customers’ needs align with the target’s value proposition?
• How strong is the target’s competitive position?
• What cost and revenue synergies exist with current activities?
• How achievable is the business plan?  What are the opportunities for outperformance and what is the key downside risk?

Our commercial due diligence process drills down on these questions so that clients can go forward confidently.

Private equity succeeds when portfolio companies succeed. What hangs in the balance, between initial investment and exit, is the question of whether the portfolio company can seize its opportunity — by refining its strategy, expanding and sharpening its operations, building its leadership team, and delivering profitable growth to support the desired outcome.

How we support

TNG’s engagements with portfolio companies draw on our extensive experience as business consultants. We apply our core strategy development approaches to help portfolio companies refocus strategic direction and enhance growth.

On the operational side, we help executives re-engineer their core business processes, rationalize their manufacturing, and support operations, and optimize the supply chain. We work with management teams to improve sales force effectiveness, optimize pricing and reduce costs.

Key client questions

Portfolio management teams should ask:

• What opportunities are there to enhance the commercial performance of the business, e.g., refining the go-to-market strategy, targeting the value proposition and improving the performance of the sales force?
• How can we expand margins through price management, including customer and channel segmentation and value pricing?
• What opportunities exist to optimize the business footprint, drive increased performance from the supply chain and reduce operating costs?
• How can we best align organizational capabilities with drivers of profitability and market share?
• What bolt-on acquisition opportunities exist to strengthen current market positions, expand geographic reach and/or offer complementary products/services?

The goal for our private equity clients is a successful exit. We support them through our comprehensive vendor due diligence process.

In the past decade alone, we have supported approximately 4,000 transactions. Thanks to that extensive experience, as well as our 30-plus years as business consultants with exposure to multiple sectors, we have developed and refined a vendor due diligence framework designed to facilitate a well-structured and efficient sale.

Our vendor due diligence support is designed to facilitate a well-structured and efficient sale through:

• Working with owners and management to craft a compelling investment thesis and narrative.
• Early identification of potential “deal-breakers” and developing mitigation strategies to address potential buyers’ concerns
• Refining and strengthening management’s business plan
• Identifying new sources of potential “upside” for the business
• A comprehensive report for bidders and extracts for presentation and other communication
• Flexible support for questions from potential buyers and lenders

How we support

At the heart of the process is our understanding of sector issues and of key issues that are on the minds of bidders. To support clients, we:

• Provide an independent perspective on the relevant market prospects and the underlying growth drivers.
• Assess the business appropriately in its competitive environment, drawing on its relative strengths.
• Engage with market participants to position the business’s value proposition with customers.  
• Review management’s business plan, which we can further develop and refine as needed.
• The end result is a comprehensive report that speaks directly to the buy side. It typically combines five modules – a business Introduction, a market review, a competitor analysis, an assessment of growth opportunities and a detailed business plan review. What you get is a detailed look at the potential of the business — designed to meet the needs and allay the concerns of anyone weighing a decision to buy.
• As a business advisor with experience that ranges far beyond financial assessment, we provide the independent commercial insight and forward-looking estimates you need to support the optimal exit.