Création de Valeur et Préparation à la Cession

The private equity market faces a structural challenge, as the holding period of portfolio companies is increasing and potential buyers’ expectations of the quality of exit preparation have risen. Anyone seeking to achieve a strong sales process needs a coherent value-creation story. This must be based on demonstrable earnings improvements, verifiable management performance and a clear roadmap for the next owner.

Context and relevance

In this environment, neither passively waiting for the right market window nor a hastily assembled vendor due diligence package is sufficient. Exit readiness and portfolio value creation depend directly on each other, as consistent value creation during the holding period forms the basis for a convincing exit story. At the same time, an early view from the buyer’s perspective ensures that decisive value levers are addressed in good time.

FOSTEC & Company supports PE investors with two closely interlinked services that together cover the entire value-creation arc. These comprise the systematic value enhancement of portfolio companies as well as proactive preparation for the exit, so that all the conditions for a successful sales process are created in good time.

Our approach

FOSTEC & Company supports PE investors and their portfolio companies with two systematically linked services that together cover the entire value-creation arc (Figure 1: From value creation to exit readiness). These comprise a structured increase in company value within the portfolio and forward-looking preparation for the exit. The holistic approach ranges from a value creation plan through operational implementation in 120-day sprints to positioning in the sales process.

Figure 1: From value creation to exit readiness

For the in-depth implementation of individual value levers, specialised fields of expertise are available that can be integrated directly into any value creation plan. Here, Commerce and Growth addresses the activation of growth potential in digital channels and markets, while Operational Excellence concentrates on cost intelligence, margin improvements and sustainable efficiency programmes.

Results and impact

Clients receive a fully developed basis for value enhancement and exit preparation. This includes a well-founded value-creation plan, a clearly anchored implementation structure in day-to-day operations, and a convincing exit story that withstands demanding scrutiny by buyers. The result is higher company values, structurally better-prepared exits and a coherent value-creation story as a strong basis for negotiations.

Position within the service portfolio

The portfolio of due diligence services comprises offerings of varying scope and focus. FOSTEC & Company provides 360-degree due diligence services for the analysis of all business aspects:

• Commercial Due Diligence
• Digital & E-Business Model Due Diligence
• Technology, Data & AI Due Diligence
• Organization & Talent Due Diligence
• Merger & Acquisition (M&A) Advisory
• Value Creation & Exit Readiness
• Carve-out & Post-Merger Integration

Let us assess in an introductory conversation which value-enhancement opportunities and exit-preparation measures are relevant to your portfolio – data-based, pragmatic and with clear, actionable recommendations.