Deals strategy and value creation

A private equity client engaged us to perform a comprehensive review of the operating model of a leading US advisory, tax and assurance firm during pre-deal diligence. Our analysis spanned various business service lines and support functions, identifying key opportunities to enhance EBITDA and drive efficiencies. We identified 50%-70% in incremental EBITDA improvement opportunities through strategic initiatives such as improving resource utilization, implementing technology-enabled automation, expanding and scaling up offshore capabilities, leveraging a flexible workforce and reducing internal operating expenses.

Our client was a PE-owned multisite healthcare provider with 100+ locations across the country. The business had grown through acquisition and faced challenges identifying and prioritizing opportunities for same-store EBITDA growth post-close. PwC conducted an eight-week assessment and identified 50%+ same-store EBITDA improvement opportunity by optimizing pricing, utilization, referrals and service mix, as well as building targeted de novo sites. Opportunity sizing and location-specific recommendations resulted from site-level assessments of performance, resource utilization, physician market power, market demand, referral channel share and more. PwC developed a pragmatic, phased rollout plan, including identifying pilot sites and key change management levers to drive value realization.

Our client is a PE-owned industrial packaging company with global operations. PwC was engaged to support development of its enterprise strategy to double EBITDA over five years, leveraging integrated cross-functional teams to develop an effective growth strategy, improve operational cost structure, improve its environmental sustainability, and build a digital roadmap. After conducting in-depth analyses of market opportunities, operational benchmarking, and organization and functional capabilities, we developed an integrated value creation plan where 75% of the EBITDA improvement would come from growth initiatives and the remainder from operational and digital initiatives. The insights and content developed were also designed for use by the PE owner in an eventual sale process, reducing future sell-side work and facilitating a more successful exit.

A leading PE firm engaged PwC to conduct an integrated diligence of a spinout of a market-leading governance, risk and compliance platform. This effort was focused on the investment levers critical to the deal thesis and, as such, spanned financial, commercial, pricing, operations, product technology and tax deal considerations. One essential value lever to the business was the technical and product differentiation within certain customer segments. Working closely together, our teams identified and quantified investments needed to address product gaps identified relative to key market competitors. These insights helped inform the PE firm’s successful bid and to deliver on the post-close value creation plan. The cross-functional team continued through the sign-to-close period, helping with closing statements, tax structuring, transition services agreement exit planning, and technology value creation work including support of subsequent bolt-on acquisitions.