PROPRIETARY EFG – ENGINEERING, FIX AND GROW - VALUE CREATION APPROACH TO STRUCTURRALLY IMPROVE THE STRATEGIC POSITION, COMPETITIVENESS AND PROFITABILITY OF INVESTED COMPANIES
Engineering value creation strategy from the very beginning
- Robust structuring of the transaction with a broader due diligence approach which encompasses not only the company on its business and capital structure dimensions, but also its evaluation from key stakeholders such as the public administration, large infrastructure players, banks, and other creditors, as well as the trade-offs which these subjects are facing
- Transformation plan: a thorough business plan which identifies (i) the strategic levers (e.g.: business portfolio review, repositioning, etc.) to reposition the risk/return profile of the business, growth perspectives and value multiple as well as (ii) the value creation from a clearly pre-identified set of performance improvement actions and (iii) risk appetite definition, KPIs and back-up plans
FIX existing issues creating a scalable model
- Hands-on operational improvement: engagement from day one to boost and anticipate as much as possible the triggering of the value creation levers
- Business portfolio reshaping execution
- Active capital management: deploying capital in specific business units and disinvesting others, identifying areas of potential underperformance or emerging growth opportunities ahead of competition
- Risk management step-change
- Modernization of revenue models: shift toward more recurring revenues and enhanced predictability as well as introduction of new contracts and clients leveraging on RN Capital Partners’ network and relationships for international expansion
GROW the business for long term sustainability to enable exit
- Management and governance renewal: progressive co-optation of new managers along the repositioning and implementation of governance mechanisms that will allow the target companies to “independently function” in the implementation of the long-term strategy and enable a change of control
- Support new contracts acquisition on a reshaped and performing machine
- Enforce value driven mindset: reshape the culture of the target introducing, also, managerial best practices including the high value appetite mindset of top global consulting firms and private equity
- Implementation of a sound capital structure to secure long-term sustainability
- Full adherence to ESG best practices