Lifecycle Framework for Private Equity firms

We partner with you and the other investor stakeholders throughout the lifecycle of the portfolio company.
An industry-leading approach for maximizing deal value

Whether a private equity firm is considering a non-control investment, acquisition, merger, or carve-out, AlixPartners’ operational due diligence teams help the firm identify the maximum underwrite-able value for every deal.

Drawing on our deep operational insight and experience throughout our firm, we analyze target companies’ operations to identify and quantify topline and bottom-line value-creation opportunities. We then phase value-creation strategies to boost targets’ performance on four crucial fronts:

  • Revenue growth
  • EBITDA / free cash flow improvement
  • Capital efficiency
  • Working-capital compression
A clear-eyed view of investment potential
We partner with PE investors and their operating teams to avoid common pitfalls while considering deals—such as overly optimistic financial estimates or hidden red flags in operations or technology. 
 
Leveraging a hypothesis-driven approach, we examine all functional elements of the target company and triangulate operational-improvement value through three lenses:
  1. Strategic context. Targets may be facing unique challenges when taken private (such as distress, declining revenue, leadership changes, lack of investment, and industry disruption). We assess each challenge and factor the resulting insights into our judgment and the priorities we propose.
  2. Cost and revenue drivers. Performance challenges are usually driven by a number of interlaced issues. We diagnose the root causes of the issues and identify the investments and initiatives needed to unlock value in a target.
  3. Improvement initiatives. Our output is a bottom-up build that provides an initial roadmap for unlocking a target’s full potential.
Thorough diagnosis of market potential.
AlixPartners’ commercial due diligence teams help PE firms assess their target company’s market attractiveness and validate key assumptions in the deal model. Drawing on our deep industry expertise, we analyze five market-critical aspects of each target:
 
  • The company—including its internal capabilities and challenges, management talent, commercial assets, and business strategy.
  • Its offerings—from features, pricing, and substitutes to value proposition and revenue model.
  • Customers—especially segments and mix trends, engagement models, churn, and net promoter scores.
  • Competitors—complete with market-share estimates, internal-capability comparisons, M&A moves, partnerships, and strategic positioning.
  • Market trends—including size and growth, structure, value chain, and segmentation. 
Analytics-based insights
We augment diagnostics with primary research (such as blind interviews and surveys) and secondary research to gain insight into the competitive landscape in question and provide a point of view on the opportunities and challenges hidden there. 
 
Drawing on these insights, we help investors validate key deal assumptions, assess the target’s commercial trajectory, and develop roadmaps for achieving key investment-thesis ambitions. We support the deal team in thinking through the underlying assumptions needed to turn around declining revenue, increase market share, or expand into new segments or geographies.
Deep insights for complex deals with limited or no access to management
AlixPartners’ outside-in due diligence teams help investors in complex and emotionally charged transactions develop a detailed fact base, with or without access to the target’s management team.
Whether the investors are considering taking a public company private, acquiring a private company, conducting a hostile takeover, or actively petitioning a board of directors, our outside-in due diligence can generate actionable insight on a company for which there’s only public information available.
 
To uncover the best investment opportunities in such scenarios, we draw on our deep industry expertise and rigorous analysis of publicly available data (regulatory filings, press releases, social media content) to diagnose the company’s full operations.
Our methodology produces a complete picture of the target’s operations and organization that informs our operational-improvement recommendations across core categories such as:
Sales, marketing, product portfolio, and pricing
Direct-material spend
Manufacturing and logistics
Product management, R&D, and engineering
IT, data centers, and facilities
SG&A
Industry-leading methodology

Deploying our three-part methodology, we define a path for maximizing investment value:
• Proprietary web gathering: We gather and analyze all publicly available data on a target to develop a holistic understanding of its operations and organization. From this fact base, we assess opportunities for operational and topline improvement.

  • Top-down: We use findings from our research to benchmark the target and its resulting cost structure and evaluate the company’s operating model and corporate structure to uncover improvement opportunities.
  • Bottom-up: Using our extensive network of industry professionals and in-house expertise, we identify structural and operational changes needed to support execution of key performance-improvement initiatives laid out for the target.
Compelling headline

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum

Compelling Headline

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum

QuickStrike

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam.

Learn more

Revenue & Growth
Operating Model Transformation

orem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum

Commercial Effectiveness

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat.

VIEW THE CHART

Product Portfolio Optimization

To achieve investment successes, a PE firm has to jumpstart the creation of new value immediately after acquiring assets. To do so, it needs to empower the portfolio company to fulfill its maximum potential through savvy management of the company’s product suite and its R&D function.

The AlixPartners Product Portfolio and R&D Optimization team deploys a time-tested framework that delivers quick boosts to portfolio companies’ bottom lines while helping them build the capabilities essential for sustaining success far into the future.

Our framework helps clients excel on two fronts:

  • Product strategy: We help companies craft the right competitive strategies, create targeted products and investments at the highest value customer segments, and optimize product roadmaps. We also help focus R&D spend, enhance gross margin, and sharpen their project investment discipline.
  • R&D operating model: Our clients receive end-to-end support in strengthening their R&D operating model. As one example, we can help simplify and automate R&D processes and transition from a product-based to a solutions-based model. We also show companies how to forge new partnerships to supercharge product innovation.
Manufacturing Optimization

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat.

Procurement Optimization

Learn more

Digital Optimization

Learn more

Compelling headline

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum

Problem it solves

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum

We help companies through all stages of M&A and drive seamless, low-risk integrations. We look strategically and tactically at your markets, growth opportunities, resource deployment and pricing strategies, implementing tactical improvement actions to manage any potential crisis and mitigate any risks

ceo personality

IN OUR CLIENTS WORDS

You should feel very proud of what you’ve done [for this company]. Read the analyst reports . . . the market realizes what you have done!”
-Board member, $1 billion company
You should feel very proud of what you’ve done [for this company]. Read the analyst reports . . . the market realizes what you have done!”
-Board member, $1 billion company

CHART HEADLINE AND VALUE