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
KAINDL
The stockholding dealer, based in Leonding, specialises in trade and industry and is also a consultant and application specialist. The company is one of the world's leading manufacturers in the field of wood-based materials as well as laminate and wooden flooring. The product range is extensive and constantly growing. Through permanent monitoring, Kaindl guarantees the quality of its products and offers its customers a comprehensive service through its own workshop, processing, and retail sales.
Hirtenberger
The Hirtenberger Group is a collective of leading technology and engineering companies that can distinguish themselves as innovation and technology leaders in their respective markets. The group concentrates on niche markets, aiming for market leadership within them. The group covers a broad spectrum of business areas, ranging from the handling of pyrotechnics and chemicals through to the automotive and defence industries, and on to resource conservation in environmental technology.
Schmitz Cargobull
Schmitz Cargobull is Europe's leading manufacturer of semi-trailers, trailers, and bodies. With innovative transport solutions, state-of-the-art technology, and an extensive service and spare parts network, the company ensures reliable and efficient logistics worldwide. Whether refrigerated vehicles, flatbed or box semi-trailers โ Schmitz Cargobull stands for quality, durability, and partnership in the transport industry.
Grรผnbeck
Grรผnbeck Wasseraufbereitung GmbH is involved in all water treatment technologies, operates globally, and is headquartered in Hรถchstรคdt an der Donau. More than any other company, Grรผnbeck dedicates itself to the subject of water. The company views water as a science, enabling it to better understand interrelationships and to extract the best from this source of life.
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.
Alete GmbH
Alete GmbH was founded in 1934 and developed the first ready-to-use infant formula. The company now offers a wide range of baby food in the form of infant formula, baby food jars, drinks for toddlers, as well as juices and teas for pregnant and breastfeeding women. In 2012, Alete held a market share of 17.8%, placing it third behind Hipp and Danone. In Germany, the company has two production sites, one in Polling-Weiding, Upper Bavaria, and another in Biessenhofen in the Allgรคu region.
BENNINGHOVEN
The company Benninghoven was founded in 1909 in Hilden, Germany, by Otto Benninghoven and was involved in the construction of gears and special machinery. With the start of the 1950s, the company began its entry into industrial combustion technology. In the early 1960s, it entered the asphalt industry. Initial products included burners, drying drums, bitumen plants, and machines for the production of mastic asphalt. Today, a pioneering spirit and tradition, combined with future-oriented technology and perfectly trained personnel, still guide the actions of the Benninghoven Group. They are the guarantee for constant innovation and customer-oriented action. Therefore, 800 employees worldwide ensure the good reputation of Benninghoven products.
CLAAS
The European market leader in combine harvesters and global market leader in self-propelled forage harvesters also produces, amongst other things, tractors, grassland harvesting machinery, agricultural balers and innovative agricultural information technologies. The family company, founded in 1913, has sites in Europe as well as branches in America and Asia. The company's focus is on efficiency and responsibility for future generations.
Spitz
For more than 150 years now, Spitz has been an integral part of the Austrian food and beverage tradition. Founded in Linz in 1857 by Salomon Spitz, Spitz has developed over time into one of the largest and best-known producers of food and drinks in Austria. Today, more than 1.2 million products leave the production facility in Attnang-Puchheim every day. Spitz offers a wide range of products: fruit juices, syrups, energy drinks, spirits, baked goods, jams, or also mustard, mayonnaise and ketchup are among them, as are own brands for leading international retail chains.
Conrad
Conrad brings technology to life โ from electronics enthusiasts to industrial customers. With innovation and passion, the company connects people with smart technology.
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.