Sourcing and winning deals at the right price has never been more challenging. Private Equity firms must quickly determine the viability of the target's industry and markets, the drivers of top line growth and what if any efficiencies can be achieved in the time frame before the desired exit.

L.E.K.'s expertise comes from assessing more than 200 deals annually. We efficiently provide PE firms with the actionable analysis they need to decide how aggressively to pursue a deal or, just as important, when to stop expending resources. During our due diligence process, we proactively identify issues and opportunities that need addressing in a "Day One" planning process.

Once the deal is won, getting the portfolio company through the disruptions of ownership transition without setbacks takes planning and execution support. Often the management team of the new company is attractive because of their operating skill. When strategy support is needed, L.E.K. can lead a collaborative effort to design a strategic framework. For example:

L.E.K. works with deal teams to identify the key economic questions and then provides the answers to help them make the most informed bid.
After determining for a client that the future growth of a target depended on two new product introductions, L.E.K. spoke to over 150 distributors and dealers in less than 10 days, providing the client with the information needed to save further efforts. The "winner" of the auction eventually discovered similar issues and, after incurring a number of costs, the deal was broken.

We identify information critical to a smooth transition as well as potential upside strategies.
L.E.K. provided due diligence on a maker of goods and services purchased by municipalities and school districts. Customer interviews revealed a strong aversion to disruption and change among purchasers and contract administrators. Armed with this information, the new owners paid special attention to retention policies and tools for employees who interfaced with customers. As a result, turnover in the sales and service group decreased and sales rose above plan after just 12 months.

We create strategies that help portfolio companies grow.
We were asked by a PE firm to develop a strategic framework that would provide a growth path for a portfolio company. L.E.K. determined that there were branding synergies between the recreational goods company and a potential target with product overlap. Through interviews with key retailers, we discovered that decreasing the number of brands in the marketplace would reduce consumer confusion as well as decrease cost of goods sold. We also recommended exploring a new brand exclusively for big box retailers. The acquisition was completed and the merged companies have exceeded EBITDA expectations.