Every investor wants to see the future. We have the crystal ball.
For mergers & acquisitions, we serve:
Turn data into profit vision.
Time-Based Profitability Snapshots
We work with our partners to provide pre-exit analytics that help CEOs, CFOs and their advisors develop a more compelling Confidential Information Memorandum (CIM) by measuring manufacturing profit margin for each production hour for different products and assembly lines.
Enhanced Quality of Earnings Assessments for Due Diligence
During a time-constrained due diligence process, our analytics assist our partners in digging deeper than conventional ‘quality of earnings’ reports to understand the true drivers of revenue and profit performance and rigorously quantify the hidden profit potential (and downside risk) of an acquisition target.
We give you an unfair advantage over your competition – the ability to see the future with clarity.
Do you know what undermines the financial performance of nearly every manufacturing firm? Complexity. It’s hard to see things clearly when a manufacturer serves many different customers with thousands of distinct products from an array of capital-intensive facilities. This complexity leads to massive data generation that’s very difficult to sift through and interpret. Our tool simplifies things by making opportunities for revenue growth clear as day.
The greater the variety of customers, products and assets that a complex manufacturing firm is managing, the greater the hidden revenue and profit upside that Profit Velocity can help you identify and capture for shareholders.
Private Equity Investment Partners
A powerful new way to improve exit values.
Private equity investors know that achieving far higher levels of profit performance will in turn yield dramatic gains in exit values. Profit Velocity understands this too. That’s why our breakthrough approach offers unprecedented opportunities to accelerate the revenue and EBITDA flowing from complex manufacturing investments.
Profit Velocity creates new value throughout the ownership cycle:
We support our consulting partners to provide enhanced due diligence reports that incorporate our proprietary time-based profit analytics. Our new perspective helps investment teams identify specific revenue and EBITDA improvement opportunities (and downside risks) that can become key factors in the investment decision.
We offer our partners a robust platform for the development of meaningful 100-day improvement plans. Our advanced analytics can be used to address a wide array of issues from financially optimized S&OP plans to manufacturing profit margin analysis to product mix optimization strategies, plant expansion or consolidation scenarios, and strategic pricing shifts.
We support the work of our consulting partners, investment bankers and management teams as they develop actionable improvement plans and programs that strengthen the case for improved exit valuations.
Quantify what no one else can see.
The ability to develop defensible financial projections is critical in sell-side engagements. Unfortunately, most projections rely on highly aggregated data that fails to identify detailed opportunities for driving financial results. Our proprietary time-based profit analytics provides hard data that allows M&A advisors to quantify otherwise invisible revenue and EBITDA opportunities that can materially increase enterprise value.
Identify your upside potential.
CEOs and CFOs considering an M&A transaction know they can make their businesses more attractive by documenting the upside potential in their product, customer and asset portfolios. Profit Velocity’s unique time-based profit analytics give CEOs and CFOs the facts they need to show by providing detailed profit-per-time analyses for each product, customer and machine.
Let’s set up a quick call.
If you have questions, let’s schedule a 15-minute call to see if our solution is right for your needs. Typically, our platform is most effective in growing profits for manufacturers that have 500+ SKUs, an ERP system in place and annual revenue of $100 million or more.
Featured Case Studies
Profit Velocity has worked with consultants, private equity investors and manufacturing management teams throughout North America, Asia and Europe. Find out how we helped companies increase their annual profits by tens of millions of dollars by rethinking their product line rationalization strategies.
Electronics Case Study
Find out how we helped a leading electronic components maker in Asia drive up profit per machine hour by an incredible 400%, increase operating margin for its new product family from 41% to 51% and add $10 million its bottom line each year.
Packaging Case Study
See how we gave a world-class packaging manufacturer the visibility to change how it viewed its product costing and which contracts to focus on, renegotiate or walk away from. Based on our insights, the company increased operating margins from 11% to 16% and annual operating profit by $88 million in just two years.
Get in Touch
If you’re interested in learning more, we’d love to hear from you.
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San Francisco, CA 94105