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
Dalli
The Dalli Group combines the tradition and values of its more than 160-year company history with the demands of an innovative, high-performing and future-oriented corporate group. The internationally active group specialises in the private label business and has established itself as the second-largest manufacturer in this sector within eight years. Products are manufactured at five sites in Germany and the Netherlands. The product portfolio includes washing, cleaning and household products, as well as cosmetic and sun protection products.
Brรผckner
Brรผckner is shaping the future of plastics processing with high-tech equipment. For decades, the name has stood for innovation, sustainability, and partnership on an equal footing.
BBRZ
The BBRZ Group was formed from the Vocational Training Institute of Upper Austria, founded in 1960, and the Vocational Education and Rehabilitation Centre Linz, founded in 1975. The corporate group is now one of the most important service providers in the areas of education, employment, and the labour market in Austria. The BBRZ Group's offerings are based on the current and foreseeable future needs of the economy and the labour market.
Wafios
โWe particularly appreciated the pleasant and good cooperation, your professional approach, and the seamless collaboration between strategic procurement and consultants, who complemented each other ideally, especially during negotiation meetings.โ โ Thomas Hรถsle (Board of Directors). Wafios AG is a German high-tech machine manufacturer with approximately 760 employees. The company is the undisputed world market leader in the field of wire and tube bending machines. Further significant business areas include machines for the production of shaped parts and for the automatic bending and welding of chains. As a producer of high-performance precision machines, Wafios is clearly committed to Germany as a production site; quality โmade in Germanyโ is produced in three domestic plants. Nevertheless, Wafios AG has a global presence with over 70 trading agencies. This is also evidenced by an export share of 65%.
Swisslog
With more than six locations worldwide, Swisslog's Healthcare Solutions provide automation for hospital pharmacies, in nursing care, for material transport, and for process optimisation. They improve pharmacy storage systems, enhance transport, and optimise workflows in warehouses and laboratories. Warehouse & Distribution Solutions can be found in more than 20 countries worldwide. Swisslog's Warehouse & Distribution Solutions improve processes in warehouses. The transport of goods is significantly simplified and accelerated by the mechanical โcarriersโ.
Grammer
โAt the beginning of the project, I was very doubtful about its purpose. However, the way you involved our internal departments in the project led to wide acceptance of your work.โ โ Tuna Arinci. The company develops and produces innovative driver and passenger seats, as well as components and systems for car interiors. The Seating Systems segment encompasses the business areas of truck and offroad seats, as well as rail and bus seats. With over 9,000 employees in 21 consolidated companies, Grammer is represented in 17 countries worldwide.
Apollo
Apollo is one of Germany's leading opticians and has stood for high-quality glasses, contact lenses and individual vision solutions for many years. Whether it's fashionable glasses, functional workplace spectacles or tailor-made progressive lenses โ at Apollo, customers will find the right solution for every need. In addition to a large selection of branded frames, Apollo also offers comprehensive services: from free vision analysis and expert advice to fair prices and a satisfaction guarantee.
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.