100 Day Plan for Private Equity

The first 100 days after a private equity firm takes ownership of an asset are critical to long-term value creation. RKON has developed a proven playbook, purpose built for the private equity sector, that can support operational improvement and growth acceleration at portfolio companies.

A 100-day plan outlines the most urgent value-creation steps that firms can take as soon as the deal closes. The objective is to identify key value drivers and create a roadmap to make improvements in those areas.

1. Align with the strategic direction for the company. Value creation always comes back to strategy. Where, exactly, does the firm want to take its newly acquired business, and how does it plan to get there?
2. Establish an interim team that will help realize the defined strategy. The only way the strategy can be implemented properly is if the right people, structures, and processes are in place. Everyone should be working toward the same goal.
3. Prioritize opportunities to improve operational performance. What are the value creation drivers that will help the company grow in the short- and medium-term? Is there order to cash improvements that can be established early in the deal cycle?
4. Build a roadmap to ensure successful implementation. None of this can be done without a detailed roadmap that everyone can follow. Private equity firms should clearly define measures and targets so that the portfolio firm’s CEO, staff, and others have something concrete toward which to work.