When Lean Meets Private Equity

Aug 29, 2018

PE firms are always looking for new and exciting prospects to convert wealth into more wealth.  Understanding how to do this requires both structure and a well-honed talent for asking the right questions, for thinking in opportunistic ways. The teams that do this are often extremely talented people to work with and see the world through a different and fascinating lens. In recent years, it has been challenging to see these opportunities but they are still there.

What if there was a chance to make the operational capabilities in a business much more visible? Amongst the promotion and bluffs and drama of an acquisition it can be difficult to see theses chances. The desktop review of the numbers tells us one thing, but what could really be done with the business operationally?

This is where Lean can really play a role. Not just as a tactical tool but scaled up Lean thinking can enable us to see waste and opportunity at the enterprise level. This is because Lean thinkers also see the world through a different lens and often see huge opportunities within organisations that others do not.

When combined with Private Equity thinking then whole new views of the world appear. Opportunity can appear where the chances looked to be marginal, and great prospects can become incredible prospects. This combined thinking has a multiplier effect on the whole approach which is hugely exciting.

At Castlefirth we’ve spent many years working at the Enterprise Level of organisations developing techniques from Sizing Opportunities and Aligning Leadership alignment through to implementation to deliver the potential. These methods have consistently delivered results that have surprised and delighted those organisations. Improvement of between 30% and 50% is not uncommon when combined with the Private Equity Vision the multipliers are much much higher.