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We work with Private Equity firms and their Portfolio Companies.
private equity
NOREMO targets our consulting services at middle-market General Partner (GP) firms managing funds of £50 Million to £5 Billion in value investing in companies with enterprise valuations in the range £5 to £500 Million.
Private Equity funds typically have a 10 year term limit and a 5-7 year investment horizon to grow the EBITDA multiples of their Portfolio Companies prior to an Exit sale to another fund, corporate buyer or public market listing.
GP firms typically guide their Portfolio Companies to:
Accelerate Growth by adding people to the Sales team and increasing the Marketing budget
Geographic Expansion into new regions and international markets
Buy and Build through M&A with complementary businesses
Business Transformation through senior Recruitment, Organisational Change and Training
interest rate challenges
Higher borrowing costs in recent years have raised the Cost of Capital. This threatens Exits at EBITDA multiples once thought easily achievable and GPs will be similarly challenged at future Portfolio Co. financing rounds or when they seek to raise their next fund.
Value creation
GP firms now need to double-down on the drive for Value Creation at Portfolio Companies in order to achieve EBITDA targets.
Investing in Apps, Software and Services to drive Operational Efficiencies as well as top-line Revenue Growth is another vitally important strategy for driving Value Creation - if previously under-appreciated.
Some call this Digital Transformation but I’ve had a Casio digital watch since 1982 and businesses weren’t talking about it in those terms back then!!!
Software today is built and run today very differently from how it was a decade and more ago.
However, knowing where to start for a non-Tech savvy business leader can be challenging.
That’s where NOREMO comes in - to guide you and your Portfolio Companies to accelerate how you do this.
For GPs NOREMO offers:
Pre-Closing Product and Tech Due Diligence
Post Closing 100 Day Product and Tech Plan
Advice on Info sharing between Portfolio Co.s and GPs
NOREMO targets our consulting services at Portfolio Companies with:
£ 5 - 500M per year of revenues
10+ years of trading history
Acquisition ambitions but needing guidance on strategy and execution
PAIN POINTS
That some Portfolio Co.s may be experiencing:
- Low customer satisfaction (CSAT) and high rates of Churn
- High cost to serve in your Order to Delivery process
- Long lead times to build/deploy new App features
- High or uncontrolled Cloud Computing costs
margin accretion
Revenue growth is only valuable if it’s scaling faster than your costs.
If you are the CEO of a Portfolio Co. we think you should be making better use of software to drive top-line revenue growth (via, for example, better customer engagement) or to drive operational efficiencies (via, for example, more automation in your back-office order management processes).
You can do this by building new apps, buying new software, integrating services and retiring legacy systems that you no longer need.
However, software today is built and run today very differently from how it was a decade and more ago.
Knowing where to start for a non-Tech savvy business leader can be challenging.
NOREMO is your partner to advise you on this strategic transition. Some of the areas we focus on include:
Customer Engagement
- User Centric Design practices that discover Customer, Employee and Partner pain points
- New Product and Subscription opportunities
- Ruthlessly prioritising new features by business value and simplicity
Business Processes
- Mapping the As-Is processes, systems and integration points
- Exploring the To-Be processes, APIs and Metrics of the future
- Outlining the transition plan from As-Is to To-Be
New Software Apps, Infrastructure and Architecture
- Piloting and scaling new apps and infrastructure that leverage and build on Cloud platforms and Edge services
- Mobile and IOT devices
- Data, Analytics, Machine Learning and AI
New Ways of Working
- Agile and DevOps methods
- Secure by Design
- Local, Global and Distributed teams