We provide concrete levers for creating value—operational and strategic measures that can be implemented.
Our value enhancement services help private equity funds and industrial companies in the machinery and plant engineering sectors, as well as in related service and software businesses, to identify and realize sustainable value-enhancement opportunities. Whether as an integral part of a commercial due diligence process or as a standalone engagement, we develop concrete measures to increase enterprise value.
Identification of Opportunities for Value Creation
Our focus is on systematically identifying opportunities for sustainable value creation. To this end, we analyze business models, processes, and market positions to identify specific areas for operational and strategic improvements.
Optimization of Operational Processes
A key driver of value enhancement lies in the optimization of operational processes. By improving efficiency, cost structures, and performance, we lay the groundwork for profitable growth and can thereby support a higher enterprise valuation.
Development and Implementation of Strategic Measures
In addition to operational optimizations, we develop strategic measures for the long-term growth of the company. These include, among other things, growth initiatives, the further development of business models, and the strengthening of our market position.
Sustainable Growth in Enterprise Value
Our goal is not to optimize individual key performance indicators in the short term, but to increase the company's value in a sustainable manner. The measures we have identified are designed to support long-term growth and the company's successful development.
Our approach
A value-enhancement lever only matters if it can actually be implemented. That’s why our value-enhancement approaches operate at the sub-segment level, not just at the industry level. We don’t just provide an assessment of the current situation; we offer a concrete vision of what a company can become—thereby laying an important foundation for investment and value-enhancement decisions.
We identify specific value-enhancement levers and develop customized measures that can be implemented in a pragmatic manner. If necessary, we also validate these measures through our network of more than 100 senior industry experts, including former CEOs and engineering directors, who draw on their hands-on industry experience to assess the actual feasibility of the measures.
Context within the Transaction
Value enhancement often builds on the insights gained from commercial due diligence and supports the implementation of identified value-enhancement opportunities. Together with the post-merger integration and structured management by a Project Management Office , this approach helps successfully translate strategic goals into operational measures.
Frequently Asked Questions About Value Enhancement
Is value enhancement part of due diligence or a separate engagement?
Both—depending on where in the investment cycle the need arises. As part of a commercial due diligence process, A&P identifies specific value-enhancement levers in the report itself, so that it is clear before signing where value growth will come from. As a standalone engagement, value enhancement comes into play later: for a portfolio company where these levers need to be identified, prioritized, and translated into measurable actions.
Which value drivers are most effective in the machinery and plant engineering industry?
Relevant levers often lie in pricing and service strategies: price execution by customer segment, margin quality in the spare parts and service business, leveraging the installed base, and efficiency opportunities in order fulfillment and cost structure. Many of these levers can be addressed without fundamentally changing the business model and can therefore also become relevant within typical private equity holding periods.
How do you prioritize value drivers identified during due diligence?
Based on impact on results, implementation time, and resource requirements—not on theoretical potential. It makes sense to start with a few levers that yield early, measurable results, followed by structural issues that require a longer lead time. It is crucial that each lever has a designated person in charge within the company, not on the consulting team—otherwise, the list of measures will remain nothing more than a document.
What opportunities for value creation are overlooked in traditional due diligence analyses?
Value drivers and risks that lie below the traditional market level are often overlooked: dependencies on individual designers or suppliers, the quality of the order backlog, technical bottlenecks, or structural dependencies within the value chain. Such issues only become apparent when analysis is conducted at the sub-segment level and triangulated with customers and industry experts.
How are the identified measures actually implemented?
Through post-merger integration and, for larger-scale programs, through a Project Management Office. A&P not only develops the measures but also supports their implementation: target state, responsibilities, timing, and reporting in the income statement. This means the work does not end with the list of measures, but with the measurable impact.
Why does operational value creation determine the exit proceeds?
Because in an exit transaction, a buyer pays for proven earnings quality, not for a letter of intent. Margin levels, order quality, and recurring service revenue must be documented over several periods in order to be recognized in the valuation. Value creation that begins only shortly before the sale is not yet visible in the financials—and is therefore difficult to justify during the process.