Published: 24 July 2024
Strategic cost and cash decisions aid operating partners in improving their portfolio company’s performance and safeguarding it against all kinds of business cycles, good or bad. This research offers six strategies to grow the business and improve value.
Portfolio companies (PortCos) often fail to effectively manage working capital without the right KPIs. This results in lost opportunities to invest in and grow the company.
PortCos need sufficient cash flow for daily operations and strategic options. If not optimally managed, business processes, acquisitions and divestitures can have major cost and cash implications.
Enable cost and cash monitoring by empowering the PortCo CEO to take a cash-focused approach to the customer base and use the right KPIs as part of a cash-maximizing strategy.
Guide the PortCo to divest underperforming assets by terminating nonstrategic initiatives, and simplifying and reducing the business
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Analysts:
Barry Glauberman, Patrick Stakenas
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