Private equity firms are well known for the deal discipline that influences their choice about when it actually makes sense to proceed with an investment and when it’s better to walk away. LAM TRAN PARTNERS understands this discriminating mindset and brings analytical rigor, independence and a vast range of industry and functional expertise to the painstaking work of vetting a prospective buyout target or investment opportunity.
We help clients flesh out their investment thesis of how a proposed deal will make money. We use a set of experts in each country we are operating to work with clients to test the investment thesis by concentrating on the big issues that will determine the deal’s ultimate success. Taking an “outside-in” approach, we combine fieldwork interviewing customers, suppliers and competitors with sophisticated financial analysis to build a proprietary understanding of the investment’s true cash flow potential. Finally, as part of the due diligence process, we help clients develop an agenda for creating value once the deal is closed.
LAM TRAN PARTNERS works alongside companies to manage their portfolios and decide where to grow and where to shed. Sometimes, by divesting non-core assets, management can better focus its attention on its core business.
We help to prepare investors consummate deals with a maximum return by preparing for exits, identifying the optimal exit strategy, preparing the selling documents and pre-qualifying buyers.
Often, the difference between a deal that generates exceptional returns and one that disappoints depends on the forethought, positioning and execution that go into developing a strong exit strategy. We’ve found that the most successful exits occur when private equity firms plant the seeds early. Forward-looking firms cultivate new profit improvement opportunities and jump-start future growth for the next set of owners to harvest.
Performance Improvement Diagnostic
Company leaders worldwide are feeling increasing pressure to improve the performance of their businesses. The challenge is to identify the key initiatives that will make the competitive difference. LAM TRAN PARTNERS performance improvement consulting allows some companies to perform a comprehensive review to identify the right issues that frame the opportunity for improvement, define a company’s market position and set compelling and achievable goals.
There is a constant stream of business fads and approaches, but a good general manager will conduct a hard-nosed, comprehensive review of the business to identify the most critical areas for improvement. Bain & Company has developed a full-potential, performance improvement diagnostic framework that points the way. It starts from our understanding of the four critical variables in any performance improvement undertaking:costs, market position, changing customer behaviors and–perhaps the least understood–complexity.
We help firms attack complexity in order to serve customers better. High complexity is often a symptom of a larger problem, such as poor understanding of customers’ needs in the case of product proliferation or poor accountability and decision making in the case of organizational complexity. Tackling the root cause pays off handsomely.