Private Equity

Opportunities for value creation

OPPORTUNITIES

Among the many areas of potential benefit for investors, there are areas with outsized opportunities for private equity and alternative investors. The first area is that of megatrends, such as the meteoric rise of FANG companies (i.e., Facebook, Apple, Netflix, Google), that have accelerated through the pandemic – high touch is being replaced by frictionless. 

The second area is that of the misunderstood and unloved companies with cheap debt. These include real estate, certain B2B, industrial, infrastructure, and warehouses.  

A third area of outsized opportunity is with strong companies in strong sectors.  Financial sponsors can consolidate a sector by buying a well-performing player and then acquiring others if and when they fall by the wayside. SafeRock can help financial sponsors in these three areas to create value. 

With its limited investment horizon, private equity has to push and deliver financial ROI within the designated investment period. SafeRock’s goal is to deliver outsized value and reduce risk, and do this year after year. There is no time to rest on our laurels. 

At the same time, there is no set formula for improving company value. You have to form a team that brings together creative, financial, operational and organizational experience. Dig deep, carefully but fearlessly. 

Sometimes simple steps allow us to deliver outsize value and reduce risk. In a recent project for a $5 billion corporate restructuring, we understood that basic blocking and tackling could go a long way. This led to clarity on the realistic options at hand for management. 

Both B2C and B2B environments are facing unprecedented disruptions from ecommerce and multi-channel shopping. Businesses have to successfully master how to engage customers over all channels and customer touchpoints. We can capture great growth opportunities when we apply our resources with purpose. 

Each and every aspect of the business now requires a reorientation. This goes from sourcing and supply chain, to category management and marketing, to ESG and risk management for executive teams and boards. Companies have to exploit new market opportunities while adjusting to the ecommerce-driven reality that modern customers expect – including immediate online transactions and swift same-day delivery where possible. 

Online digital media marketing offers great opportunities to maintain your voice with the customer. Harnessing this potential requires balancing ROI online and offline and must be supported by Artificial Intelligence, Machine Learning, and real-time analytics combined with comprehensive after-the-fact reviews.

In this environment, best-in-class companies are using:

  • Strategy to integrate all sales channels
  • Capturing lost sales
  • Real-time marketing campaign tactics
  • Thorough post-mortem review
  • Deciding how to best partner with commerce platforms

We are experts in managing such challenges and strengthening your company’s competitive edge. Working with global leaders and technology, we support CPG clients to find effective, deployable, and reliable solutions. We provide strategies that work, and we know how to improve, re-engineer, and restructure a business to best meet our clients’ financial, operational, and shareholder needs.

 

OUR EXPERTISE

Market pressure is rising, and optimizing both top and bottom lines is mandatory. We need to move away from gut feelings and make data-driven decisions. The modern challenge is to use technology to strengthen your Sales and Operations and improve line of sight to the customer, reduce costs, and improve operational efficiency. These systems enable one-time data entry and improve transparency in your workflow to keep everyone on the same page. To optimize value, these should be integrated with your innovation pipeline, R&D, and intellectual property. The results are agile operations that decrease costs and increase bottom line EBIT, while at the same time protecting financial efficiency and driving entry into future markets. 

Our experience covers a variety of sectors, including:

  • Apparel
  • Automotive
  • Beauty/cosmetics
  • Consumer electronics
  • Durables 
  • Convenience goods
  • Food & beverage
  • Furniture
  • Hardware
  • Household goods
  • Luxury
  • And more

Our clients utilize multiple transaction formats, including: 

  • Direct to consumer (DTC)
  • E-commerce platforms
  • Mobile
  • Live streaming commerce

 

WHAT WE PROVIDE: OUR SERVICES & SOLUTIONS

We identify and strengthen your key trading partnerships, sharpen promotion decisions and increase marketing ROI, and recapture excess fat from S&OP, add resilience to supply chain, extend your financial runway, and improve shareholder value. 

From innovation portfolios to supply chain planning and customer line-of-sight, we have successfully guided top-tier clients to leverage new market opportunities and gain competitive advantage. Together, we can improve your bottom line profits and top line sales. 

Whether it is digital transformation, lean operations, or supply chain resilience, let’s explore this together. We are happy to share our operational experience and ways to reduce company risk. We work with you and guide you to grow business value, improve strategic position, strengthen leadership, deliver data-driven outcomes, and use analytics to improve results and EBIT. 

 

WORKING TOGETHER, WE CAN:

  • Strengthen strategic partnerships with most important customers
  • Focus Brand investments in line with shopper needs and opportunities
  • Grow sales and profits and improve ROI with existing spend
  • Accurately measure the effects of online and offline promotions
  • Improve the effectiveness of marketing spending
  • Measure the excess value from online advertising, social media presence, etc.

 

STAY IN TOUCH

We provide companies with comprehensive data and analytics to optimize spending across one or many channels. For more information about how we can help you improve your reach, contact us.