AI-GENERATED
Procurement optimisation for private equity
Maximising EBITDA growth and exit value through professional procurement: Procurement optimisation is the quickest and most effective lever for immediately increasing the profitability of portfolio companies. We identify untapped return potential, professionalise the procurement organisation, and achieve measurable cost reductions โ for significant value enhancement in the shortest possible time.
AI-GENERATED
Portfolio Value Enhancement: Strategic Procurement Optimisation for Private Equity
In the holding phase, every percentage point of margin counts. While revenue increases are often time-consuming and fraught with risks, optimising direct and indirect costs has an immediate impact on results. We support PE firms and management teams in developing procurement from an administrative function into a strategic value driver. We focus on a pragmatic โhands-onโ approach that not only delivers concepts but also guarantees implementation right down to the P&L.
Key Facts about our Expertise:
- Quick EBITDA effects: Realising quick wins within the first 3 to 6 months.
- Transparency & Reporting: Building valid spend analyses as a basis for management decisions.
- Professionalisation: Transformation of purchasing through the implementation of modern processes and digital tools.
- Portfolio Synergies: Bundling requirements across different portfolio companies to achieve economies of scale.
- Enhancing exit readiness: Creating a scalable and transparent cost structure that maximises enterprise value upon divestment.
Private Equity Value Appreciation
Private Equity: Doubling the Enterprise Value of Your Portfolio Companies
With approximately 50% of revenue share, purchasing represents the most significant earnings factor in companies. If it is possible to Purchasing costs om 8% to reduce, the company result can be increased by up to 50% in a short time. With an average leverage share of approx. 50%, the company value can thus be doubled within 12 months through purchasing optimisation measures.
Investment companies are keen to use Kloepfel Consulting's services because these value-creation effects for the portfolio are important to them. Furthermore, private equity firms appreciate Kloepfel Consulting's 100% success-based fee model. If we don't save money, we don't earn a fee. We regularly provide support during due diligence with analyses on the evaluation of savings potential in procurement and supply chain. If the company is acquired, we guarantee the realisation of the analysed potential in the form of a joint project. In this way, our industry teams quickly recover large parts of the purchase price in the form of increased earnings.
Excellent as BEST ADVISORS โ 11th time in a row
Example Project Outcome (anonymised)
Processed material groups, among others.
Logistics, including courier services, IT, telecommunications, printer management, energy (electricity, gas), auditing, tax consulting, insurance, office supplies, personnel services, printed materials
Example Project Scorecard
Project volume: 80 million Euros
Managed volume: โฌ40 million
Project Team: 2 Consultants
Project duration: 8 months
Satisfied customers
โWe enjoy working with Kloepfel Consulting. Sustainable and comprehensive optimisations in the material share increase the value of our holdings.โ
โKloepfel Consulting impresses with fast and sustainably effective measures to increase company value.โ
โThe project result achieved together of over โฌ800,000 within the first 7 months has far exceeded our expectations and confirmed that we have found the absolute right partner in Kloepfel Consulting.โ
โThe result achieved of over โฌ1 million after just eleven months pleasantly surprised us and convinced us of your performance.โ
Would you like to learn more about the private equity sector, or do you have other questions about KLOEPFEL Consulting?
Convincing
References
TonerPartner
TonerPartner delivers toner and printer supplies quickly, reliably, and with environmental consciousness. As an online pioneer, the company stands for quality and customer proximity.
Doc Morris
As an โonline pharmacy,โ DocMorris supplies its customers with medicines and accessories. An extensive drug catalogue contains all the necessary medications and allows customers a convenient ordering process via the internet. Furthermore, DocMorris offers services in the form of online pharmaceutical advice. The company was founded in 2000 by Jacques Waterval and Ralf Dรคinghaus and is now one of the leading mail-order companies in the pharmaceutical industry. There are several sites in Germany and also in the Netherlands. For several years, DocMorris has been transitioning from a prosperous drug dealer to a digital health advisor.
Fundermax
FunderMax GmbH is a company founded in 1890, operating within the wood processing industry and based in Glandorf, near Sankt Veit an der Glan. It makes no difference whether wood is needed for furniture, facades, or interior finishing: FunderMax stands at the interface between idea and material, offering its customers the appropriate material for their needs.
Gallus
The Swiss company from St. Gallen, with just under 600 employees, focuses on supporting and advising label and folding box printers. With a comprehensive package of machinery and services, Gallus supports and accompanies them in the successful production of their products. The company individually adapts to the needs of label and folding box printers, offering, for example, printing presses, die-cutting units, accessories such as blisters and sleeves, screen printing plates, and its own service and spare parts department.
Griesson โ de Beukelaer
โFurthermore, the sustainability of the savings achieved was a priority, which we can confirm from today's perspective.โ โ Roland Haffke (Commercial Management). Griesson โ de Beukelaer is one of the leading companies in the European sweet and savoury biscuit market, producing at five sites in Germany. Founded in 1850, the company employs over 2000 people. Its product range includes, among others, the well-known brands DeBeukelaer, Griesson, Prinzen Rolle, LEICHT&CROSS, Tekrum, Cafรฉ Musica, TUC, and Wurzener. Sustainability is not just a phrase at the company, but is actively practised through the use of organic raw materials. Numerous top rankings confirm the high quality.
Sarstedt
Sarstedt is one of the leading suppliers of laboratory and medical technology. With a spirit of innovation and quality, the company serves global health.
World Gloves
World Gloves offers high-quality protective gloves for medical, industrial, and everyday use. Quality, comfort, and safety are at the heart of the company.
Leoni
LEONI AG is a globally active provider of products, solutions, and services for energy and data management in the automotive industry. The company develops and produces intelligent cable systems, wiring harness solutions, and innovative technologies that make modern vehicles more efficient, safer, and more connected. With many years of experience, an international presence, and a clear focus on sustainability, LEONI accompanies the automotive industry on the path to a connected, electric future.
Heim & Haus
The company HEIM & HAUS Holding GmbH, based in Duisburg, generates a turnover of over โฌ100 million through the direct sale of sun protection systems and building components for private residential properties (e.g. awnings, front doors, roof windows, canopies, garage doors, etc.). The stated goal is to offer customers the best possible solution. The key to this is individual on-site consultation by the company's specialist advisors.
Our industry expertise
Automotive
Retail
Mechanical and Plant Engineering
FAQ: Key Questions for Procurement Optimisation for Private Equity
Why is procurement the most important lever for PE investors?
As material and service costs often make up the largest part of total expenditure, every euro saved in procurement flows directly into EBITDA. With an assumed exit multiple of 10x, a saving of โฌ100,000 immediately leads to an increase in enterprise value of โฌ1 million.
How quickly can initial savings be realised?
Initial results (quick wins) are usually visible within the first 12 to 16 weeks. Our focus is on swift implementation that does not burden day-to-day operations.
Will the achieved effects be sustainable?
Yes. Our aim is not just one-off cost reduction, but to empower the organisation. We are implementing sustainable structures, optimising supplier contracts, and training local staff.
How do you handle portfolio companies in different industries?
Through our broad industry expertise, we can leverage specific benchmarks. We know what โbest-in-classโ is in the respective industry and tailor our strategies individually to the market situation of the portfolio company.
Do you also support bundling across the entire portfolio?
Absolutely. We identify product groups that can be consolidated across various holdings (e.g., logistics, energy, IT) to achieve significant volume advantages through cross-portfolio sourcing.