The Operating Partners Guide
to Procurement Optimization

Leveraging Procurement for EBITDA Improvement.

Private equity operating partners are more prevalent today and must have vast array of experience in all functional areas. But, we find that they don’t always have a mastery over niche areas such as procurement. Controlling procurement costs within your portfolio companies is harder than it seems, and few mid-market portfolio companies do it well across all expenditures.

Yet fully optimized, procurement spend will have a uniquely compelling and near-term impact on EBITDA. At a minimum, ask yourself if you believe your portfolio companies’ procurement functions are fully optimized. If not, what is the size of the opportunity? If it is meaningful, how do you capture it?