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Services for Private Equity

Help is at Hand

Postern will improve existing portfolio investments and provide sound operational due diligence advice when targeting new businesses or portfolios. Our operational teams support value creation and we implement best practices to improve and create eventual profitable exits.

We work with private equity, venture capitalists, and stakeholders, to objectively evaluate businesses operationally and financially. We do this by first identifying the issues through our pioneered Postern operational and financial strategic diagnostic review (PDR). We then directly implement corrective and improvement actions where appropriate. We are able to run a PDR on individual companies or a portfolio of companies, assess where stress/distress or management issues lie, and identify and recommend corrective and improvement measures to ensure that maximum value can be extrapolated upon eventual exits.

Essentially, we are “do-ers”, not merely consultants or report writers and our approach is focused, incisive and relevant.

Services for Corporates

Risk management and governance are an essential feature of private equity’s focus, as are:

Services for Private Equity

Performed by highly experienced mobile operational trouble-shooters in the UK and Europe, we can also operate on the “buy-side” of equity deals where we can bring supplemental operational due diligence support and implement the requisite operational improvements to achieve stakeholders’ aims and objectives.

Through Postern’s pioneered team based “active management review” we are able to assess the issues faced by the business and its management. We are able to supplement and organise the senior management team of a business, as appropriate, to focus on these critical issues.

Although we recognise the experience and skill of incumbent management, we also appreciate that bad habits, strategic fixations, lender pressures, fear of failure and inability to innovate, are important barriers to change. At Postern we are experienced at change where this is necessary. We can work alongside incumbent management to strengthen and support stakeholders’ objectives or, if necessary, replace key senior management. We are able to objectively identify opportunities and prepare strategies or tactical programs where businesses require debt and/or equity to grow and we ultimately improve enterprise value.

Operational Due Diligence

Pre-stress/distress strategic diagnostic review (PDR) to identify growth strategies and optimise stakeholder position to highlight key issues, outline areas for business strategy and operational improvement, risk mitigation, and maximisation of financial returns.
Non-intrusive, management supportive and focused. Provides no nonsense, focused operational and financial report highlighting value added relevant information that is focused and incisive and not simply analytical.

Services

Operational Due Diligence

Pre-stress/distress strategic diagnostic review (PDR) to identify growth strategies and optimise stakeholder position to highlight key issues, outline areas for business strategy and operational improvement, risk mitigation, and maximisation of financial returns.
Non-intrusive, management supportive and focused. Provides no nonsense, focused operational and financial report highlighting value added relevant information that is focused and incisive and not simply analytical.

Operational Due Diligence

Pre-stress/distress strategic diagnostic review (PDR) to identify growth strategies and optimise stakeholder position to highlight key issues, outline areas for business strategy and operational improvement, risk mitigation, and maximisation of financial returns.
Non-intrusive, management supportive and focused. Provides no nonsense, focused operational and financial report highlighting value added relevant information that is focused and incisive and not simply analytical.

Example Case Study

Over numerous assignments, we have consistently delivered exceptional value to our clients.

Postern’s Remit

  1. Equity “Buy-side” diagnostic reviews to provide incisive operational evaluation and effectiveness;
  2. Validation of existing or new business plans;
  3. Regaining acceptable performance in under-performing companies and agreeing revised targets tied to exit strategies; Developing and implementing profit improvement programs to recover and optimise shareholder value;
  4. In businesses that are experiencing cash pressure – re-establish financial stability, by developing programmes to optimise cash flow and renegotiate as necessary funding/covenants to ultimately maintain solvency;
  5. Developing effective reporting, and implementing structured financial and non-financial information packages with effective reporting at all levels. Integrated balance sheet P&L and cash flow statements;
  6. Equity portfolio management to drive value on existing portfolio investments or “bolt-on” acquisitions;
  7. Equity portfolio disposal – preparing businesses for sale and working with incumbent management to increase EV;
  8. Equity portfolio companies who need to identify and dispose of non-core assets in UK and/or Europe and improve EV;

A Major Restaurant Chain

This major group of restaurants had been acquired as a management buyout from a listed plc. Thereafter a period of poor trading had led to the stage where the group would shortly be unable to meet its loan repayments.

Postern was asked by the principal shareholder to take executive control and to effect an early exit. With a four-man management team Postern improved the trading position significantly and remained within the group’s cash facility. An external financial advisor was employed to prepare the sales memorandum and to market the sale of the group. Postern achieved a successful exit within eight months. Subsidiary achievements included:

Improved cash management throughout the group
Securing of funding for the successful opening of a new restaurant
The sale of the group’s interest in its major franchise to its franchisee
The closure of the international franchise operation