Rigorous execution of a five-year value creation plan secures a 100% ROI for a private equity consortium

Vision

A top tier strategy firm’s value creation plan (VCP) would see the PE investors double the value of their newly acquired generics company. But they needed a pragmatic approach to smoothly execute the plan – which spanned all areas of the portfolio company –  and significantly improve the top and bottom-line and increase EBITDA and valuation before exit.

Challenge

• Stakeholders from different functions had to get alignment and buy in ​on the key enablers to deliver the goals and on-paper targets.​
• Pre-work planning was needed to implement 150+ initiatives across procurement, supply chain, and manufacturing.​
• R&D had to find new ways to meet an ambitious target of $100m net new sales.​
• Portfolio growth demanded strategic M&A and integration support.

Solution

Genioo partnered with portfolio company executives and PE partners to smooth friction and facilitate execution of the VCP. Together we:​

• Delivered a Top Team Alignment for 30 key leaders to deepen understanding, belief, and ownership (UBO) of the tangible benefits.
• Set up a Transformation Office (TO) to capture cross-functional strategic and operational input and co-create detailed plans with defined enablers and outcomes for each initiative.
• Used diagnostics to validate and prioritize initiatives to plug a shortfall in the desired €200m bottom-line savings. 
• Leveraged our pool of independent consultants to offer two ‘on-demand’ specialists in transformation financial tracking for a cost-efficient way to link savings back to the P&L, provide robust financial and operational tracking, and to empower teams to provide clear steerco updates. 
• Partnered with R&D leaders to make the case for transformation to power innovation and launches and close the gap towards their net new sales targets.
• Supported top-line inorganic growth through a series of M&A initiatives and post-M&A integrations.
• Designed a 12-month program to embed new processes and technology, stabilize all initiatives, and gradually upskill the internal TO to phase out our support and enable them to takeover execution.

Impact

Initiatives:​

• Built and executed a project pipeline to realize $260m+ bottom-line savings. ​
• Delivered $129.6m savings in the first year against a target $108m (120%) – confirmed by an external auditor.  ​
• Supported 20+ successful acquisitions and integrations to build a strong international presence and portfolio for top-line growth.

Investment:​

Latest company figures show that the five-year value creation plan has been successfully executed to deliver:​

• Revenue growth of over 75%​
• 9% compound annual net sales growth rate​
• Double the EBITDA and estimated company value