Driving Portfolio Value with a P&L-Focused “Toolbox”

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Key to enterprise value creation is spend reduction—but in today’s Private Equity environment, your portfolio companies’ upfront efforts at cost optimization are not borne out as long-term spend reduction. Thus, true P&L value never materializes. Especially in more complex indirect service categories, your portfolio companies’ leaned-out procurement teams are faced with tackling the immediate—negotiating good contracts then swiftly moving to the next critical item—with no discretionary resources dedicated to the crucial post-negotiation expense management “joust.” As soon as the ink dries on those new service contracts, indirect vendors’ various profit-padding tactics begin chipping away at any spend reduction promised—all while your teams’ eyes are elsewhere.

Fine Tune helps Private Equity firms pad their profits, not those of their portfolio companies’ suppliers. With a formula developed over more than 20 years, we deploy world-class category experts armed with our proprietary eMOAT℠ technology to optimize your portfolio companies’ indirect service programs and, crucially, we combine continuous monitoring, auditing, and proactive management to ensure your P&L truly realizes greater value.

“Within indirect services, the 'good contract/bad deal' phenomenon is the norm. GPOs may put clients in good deals with low unit costs, but indirect service suppliers have no trouble grabbing margin after those deals go live. Fine Tune is modeled not only to optimize indirect service costs from a contractual standpoint, but also to ensure lasting EBITDA growth."

Rich Ham, CEO, Fine Tune

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