Private Equity Operating Partners Improve ROI With Independent Consultants
As an Operating Partner, you’re bound to frequently require new or additional talent on your team to manage strategic planning, cross-functional work, and value-creation initiatives. On top of the changing demand for specific skill sets, you also need to move quickly.
The solution to both of these challenges is right-sized consulting — gaining access to the right talent at the right time. This entails leveraging an agile platform such as Catalant to help you quickly hire highly skilled and experienced independent consultants that are ready to make an immediate impact on strategic planning, cross-functional work, value creation execution, and more.
Why Private Equity Operating Partners Should Hire Independent Consultants
Rather than bringing on a team of people who may not have ever executed initiatives similar to those at your portfolio company, or putting another Operating Partner into an interim role that they don’t have the bandwidth for, hire a consultant (or consultants) through Catalant with the skills and resume your team requires. You’ll improve time to value and ROI over alternative options like hiring a full-time employee or a full team from a major consulting firm. In fact, within just one day of your project being listed on Catalant, you’ll be able to view qualified candidates. And within about two weeks, your chosen consultant (or consultants) will be ready to begin work.
7 Ways PE Firms Benefit From Independent Consultants
Here are seven real examples of how private equity firms have leveraged the talent of highly skilled independent consultants they hired through the Catalant platform.
1. Mergers & Acquisitions: Integration of a Technology Company Post Merger
Challenge: An LA-based private equity firm needed a local senior consultant to support the integration of a technology company after a merger.
Solution: The firm hired a consultant through Catalant who had handled deal execution for clients at PwC and had experience working with C-suite and integration leaders across over 20 merger integrations.
Result: By the end of the six-month engagement, the consultant had planned and launched an integration management program. They also established “day one” requirements and supported the IMO in leading implementation.
2. Market Research: Due Diligence to Inform Investment
Challenge: In need of due diligence support, a PE firm was looking for a consultant who could conduct a market assessment of automotive glass repair software to help them inform an investment opportunity.
Solution: They hired a consultant through Catalant who was working as a principal at a boutique firm and had 10 years of strategy and market research experience.
Result: Over a four-week period, the consultant was able to break down the market by customer segment and identified major competitors within each segment. They also analyzed value drivers and assessed positioning and growth trends.
3. Go-to-Market: Lead Generation Support
Challenge: Seeking lead generation support, a PE firm needed the help of a consultant who could perform web scraping and handle email automation to set up conversations with targets.
Solution: They hired a consultant through Catalant who was working as the CEO of a specialized marketing and sales firm and had extensive experience in implementing email automation that supports M&A strategies.
Result: Over the course of two weeks, this consultant set up web scraping and implemented email automation for outreach. They also made several deliverability improvements and linked all results with a CRM to centralize customer data.
4. Supply Chain: Warehousing Improvements With Lean Best Practices
Challenge: A PE-backed CPG company needed a consultant to help them improve warehousing with lean best practices.
Solution: They hired a consultant through Catalant with over 30 years of warehousing and distribution experience as well as a deep knowledge of lean process improvement and CPG warehousing operations.
Result: Throughout the four-week engagement, the consultant was able to review current processes, information systems, and physical layouts. They created comparisons with best practices and provided recommendations for improvement.
5. Financial Planning & Analysis: Financial Analysis Support After Two Acquisitions
Challenge: A private equity-backed retail company was in need of a consultant who could support its FP&A needs after two acquisitions.
Solution: The firm hired a consultant via Catalant’s marketplace with extensive FP&A experience. This person had worked as interim CFO as well as in finance and M&A roles at a PE firm.
Result: Over the course of two months, the consultant was able to update a leveraged buyout model and forecast for the calendar year ahead of a board meeting. They also built an operating cash flow model.
6. Data Science & Analysis: Database and Scoring System Creation
Challenge: A global private equity firm needed a data scientist who could help them build a database of companies from several sources.
Solution: The firm hired a consultant through Catalant who had experience at a management consulting firm and led multiple data science and machine learning projects for Fortune 500 companies.
Result: In six weeks, the consultant developed the database the firm needed as well as created a scoring system to cluster and access information within the database.
7. Human Resources: PE Firm Employee Benefits Revamp
Challenge: A private equity firm needed someone to review and revamp the employee handbook and benefits guide.
Solution: The firm hired a consultant with over 15 years of experience in employee benefits roles working on benefit design, total rewards programs, and HR due diligence.
Result: Over a two-week period, the consultant was able to partner with senior leaders at the firm to collect feedback on the handbook and benefits. Then they identified areas for improvement and rewrote the guide accordingly.
Hire Independent Consultants Through Catalant to Execute Your Value Creation Initiatives
Some of today’s most successful PE firms are bringing on consultants through Catalant’s platform to execute their value creation initiatives. The vast experience of the experts on Catalant’s marketplace means consultants are ready to hit the ground running on these initiatives and provide immediate value.