Performance improvement for a high tech player
Delivered a complex and sensitive performance diagnostic for a PE-owned entity, leading to further investment and a shared way forward.
Our expert team of strategists built credibility with highly technical teams and conducted a diagnostic of cutting edge R&D entities and pipelines. The resulting recommendations would focus development, unlock group synergies, and more profitably utilise resources. Based on our granular and robust assessment, developed in close collaboration with company teams, the PE firm agreed to further investment, and the plan is now being implemented.
Context
The new PE owner of a group of high tech communications businesses was concerned about performance, which was opaque, and seemingly short of their expectations. Suspicions and mistrust were building, and the business was resisting further intervention from the PE, and not open to the idea of involving external consultants.
Our team of strategists, who from partner to junior analyst all had backgrounds in the same scientific field as our client, were able to overcome the initial scepticism and gain management’s trust, and we engaged to work with the business on an analysis of performance across the group.
Approach
The diagnostic was complex: across multiple entities, in cutting-edge high-tech environments, requiring the assessment of an R&D pipeline.
Our project leader was an expert in the industry and directed our combined consultant/client team to rapid insights: the development projects, while technically compelling, in places lacked a clear commercial plan for monetisation; there were synergies across the different entities that were not being utilised; and there was an opportunity to more profitably optimise people allocation.
We sharpened practical plans to address these changes, valued the upside case, and calculated the investment then required to scale the business.
Impact
Our work delivered hard truths to both the PE and the portfolio company, and built bridges between the investors and the organisation, with shared clarity on the way forward.
Based on this newfound confidence, the PE agreed to back the new plan with further investment. They made changes in governance and organisation to support the new way forward, and are pursuing our recommendations.