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PE Firm Saves Six Figures+ With PortCo IT Spend Analysis

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Client Profile & Challenge

Our client is a lower-middle market private equity firm focused on partnering with family and founder-owned manufacturing, service, and distribution companies.

Challenge:

Our client was seeking assistance in the evaluation of their current IT Spend at five of their portfolio companies. Our client wanted to understand how their portfolio companies’ IT Spend stood in comparison to the industry benchmark. This analysis included key technology and IT investments, process efficiencies, and technology adoption.

Solution Overview

Messina developed and delivered an analysis of 5 key IT Spend areas:

  • Hardware
  • Software
  • Internet/Telephony
  • IT Employees
  • Services

Messina then provided our client with a baseline program to evaluate and monitor PortCo IT effectiveness through a combination of processes and metrics which can be utilized to compare and contrast (“benchmark”) their portfolio companies’ technology investment against third-party industry standards. These benchmarks were used to identify potential problem areas and further investigate those for possible inefficiencies.

Solutions:

Business Advisory Services

“AFTER” BUSINESS VALUE CREATION

Our private equity client discovered many areas where they could be overspending compared to similar-sized companies in their PortCo’s industry.

Through this engagement, our client uncovered expensive contracts and identified opportunities to renegotiate or find different providers without sacrificing service levels. Our client saved money at each PortCo, especially at one PortCo in particular, where they now enjoy saving multiple hundreds of thousands of dollars each year.

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