WP&C Private Equity Services

Most portfolio companies face high levels of profit concentration—frequently, 20–30% of their products, services, or customers drive 300% of profits. Worse yet, few executives truly understand where their profits come from, due to cross-subsidizations, and the inadequacy of traditional costing systems. But this is an opportunity! Within most portfolio companies lies a far more profitable, high-growth business just waiting to be unlocked. WP&C specializes in uncovering and capturing that hidden potential.

We partner with PE sponsors to develop the Value Creation Plan (VCP)

Key elements of VCPs often include:

• Product & Customer Profitability: using WP&C’s unique Square Root Costing Methodology
• Pricing Strategy: incorporating cost-to-serve analytics
• Business Simplification: streamlining product portfolios, processes, and organizational structures
• Cost Reduction: identifying complexity cost drivers, using zero-base approaches to reshape cost structure 
• Offshoring: assessing where and how work is done, and who should do it—from assessment to cutover
• Operationalizing Strategy: translating market strategy down to specific actions that unlock value 
• Execution Support: supporting portfolio companies by driving projects from analysis to results 

Given that many portfolio companies are either capacity- or capability-constrained, WP&C both develops and then helps to execute the VCP, working closely with the portfolio company management team to realize results.  

• Case Study: Reduced complexity to drive $120M growth for a staffing services provider
• Case Study: Right-sized product portfolio by 50% to drive >100% EBITDA uplift for a mining products company
• Case Study: $10M EBITDA lift in 10 weeks for a sales & marketing Company

Strong due diligence is what separates a good deal from a bad one, and with growing competition for deals, sponsors are sizing up more complex opportunities. However, many large consulting firms are standardizing and offshoring diligence activities! The danger is a disconnect: without a more ground-level view, the odds increase for a miss in diligence.

WP&C’s due diligence services help close that gap. We bring an ownership mindset to the assessment of risks and value. In Commercial Due Diligence, we probe the true headroom for market growth, the profitability of customers, and the competitive landscape. We combine that with deep capabilities in Operational Due Diligence, pressure-checking whether the target has the operational muscle to execute as planned. In addition, Operational Due Diligence is where we assess the potential value creation from simplification, leveraging our complexity analytics to assess incremental EBITDA improvements, adding welcome certainty to a deal thesis.

• Guide: Operational Due Diligence and WP&C’s Operations Maturity Model
• Case Study: $130 million growth opportunity uncovered for a steel fabricator
• Case Study: Diligence identifies $100M cost avoidance opportunity 

Commercial & Operational Diligence Core Focus Areas

Many integration efforts are oriented towards functional integration and business continuity, with an overreliance on 100-day plans and check lists. This frequently “bakes in” complexity, leading to duplicate processes, shadow functions, and conflicting performance management systems. Ultimately, this  undermines the deal thesis.

WP&C’s PMI services support your “Day 1” business continuity imperatives, while also defining the right future state operating model that maximizes profitability and growth in the combined business or roll-up. To support this, we leverage our PMI playbook, accelerating integration progress within functions and back-office on many of the “must do” items. Additionally, we deploy our strategic methodology to inject zero-based thinking into future operating model design.

• Case study: Creating a PMI capability for a home healthcare rollup
• Case study: Capturing latent integration benefits for professional services firm

How Complexity Gets "Baked-in" During Integration 

With many Private Equity acquisitions exceeding their typical hold period, the need to plan and prepare a successful investment exit is more important than ever. WP&C has a proven track record of delivering exceptional exit support. We work with Private Equity sponsors and portfolio companies to ensure an optimal valuation and attractive sell-side story. 

WP&C’s approach to pre-exit planning:

1. “Full Potential” Analysis: We work with the management of the portfolio company to identify and quantify the biggest value levers 6–12 months prior to going to market 
2. Market Analysis: We assess the likely buyer community (strategic vs. financial) to understand key synergy opportunities and prioritize initiatives
3. Execution & Value Capture: We add firepower and capacity to help execute on the pre-exit value creation plan to get “points on the board”
4. Value Creation Story: We package up the value creation story to date—and future achievable synergies—for inclusion in sell-side documents
5. Exit Readiness: We work with private equity sponsors and management to prepare for and better manage the due diligence and transition process
   
   

Resources

• Case Study: Pre-exit optimization work leads to a 400% increase in EBITDA
• Case Study: Restructured op model, leading to 30% EBITDA increase and strong exit