As competition for prime targets continues, execution prior to and post-close is as critical as ever. PitchBook and INSIGHT2PROFIT’s latest publication explores the key strategies private equity dealmakers are using to differentiate their approaches for swifter execution and greater certainty in results.
The US dealmaking landscape and private equity deal makers have rarely been as competitive as they are now. Price tags are near or at record highs and yet the dealmaking cycle continues apace. Ensuring your deal is worth it remains more critical than ever before. In a recent interview with PitchBook, we review strategies to ensure revenue and EBITDA growth in the costly current environment.
With fierce competition for prime assets and a flurry of Middle Market PE deals that put 2018 on pace for a record year1, both buyers and sellers are looking for any advantage. While the typical due diligence playbook includes financial, IT, employee, customer and market assessments, it ignores pricing analyses. Yet pricing diligence provides a unique advantage as it analyzes the strongest profit and value creation lever in any business…the power of pricing.
Striking the right balance between effective pricing strategies and company performance is often an issue because there are so many factors involved. With price being the most important lever impacting your bottom line, one major pricing mistake could risk your company’s profit potential.
When there’s a pricing problem at your company, you know it. Still, you struggle to pinpoint what, exactly, the problem is—and how to fix it.
One critical step towards gaining visibility into your pricing issues is something we like to call “price-down reporting.” In this article, we’ll talk about what that term means, and how to use it to your advantage.
This post was originally published on PricingBrew.
It may seem counter-intuitive to bring in an outside pricing partner when you already possess expertise in-house. However, with benefits ranging from access to leading pricing technology to insights into cross-industry best practices, the right pricing partner can help even experts magnify the impact they are able to make.
Strategic mergers and acquisitions can drive impressive growth. All too often, though, growing pains can get in the way of reaping the full benefits of the synergistic new organization. Poor data clarity is a common challenge, as two organizations struggle to blend their various ERP and other business intelligence systems into a unified structure.
From a pricing perspective, this lack of visibility raises serious concerns. A pricing manager’s overarching goal is to understand the new product mix in order to keep growing the already-strong business while improving weaker accounts. However, when data is stuck in siloes, it becomes difficult to identify all of the opportunities for economies of scale the merger or acquisition was intended to produce.
Fortunately, there are steps you can take to quickly consolidate your data into a single, cohesive view. These actionable insights will in turn empower you to drive strategic pricing improvements and move more customers to more profitable product lines, across the new organization for better price visibility.
When a company initiates a price increase, it’s common to fear pushback from the sales team. That pushback, however, can be overcome when you consider that pricing and commercial teams share a common goal: profitability. Most sales strategies are designed to drive more revenue and margin. Raising prices is, in fact, a driver for both outcomes.
When price changes are executed well, sales reps can actually make more money with less effort. The initial pushback from sales, however, can derail your best efforts. Here, we review three challenges associated with getting sales teams fired up about pricing and strategies to overcome them.
Recently, INSIGHT2PROFIT worked with a manufacturer that had not executed a price increase in nearly three years. There had been individual negotiations, but overall, pricing had remained relatively flat. While the company was a market leader, it was ignoring the pricing lever for profitability.
Our team worked with theirs to determine a plan for strategic price increases, as well as a process for conditioning customers to expect those increases. Here are the steps we took, which you can utilize to ensure your own success in communicating price increases to your customers without losing business.
This post originally appeared on Inc.com
Want to make more profit? Just sell more, right? Well, you know it's not that easy. In fact, there's been some dire economic news lately, the gist of which says sales are down across most industries. In the face of falling retail sales and low expectations for a swift recovery, what are the chances your company will be the one to defy the odds and triumph with a record sales season?
You might very well be that exception to the rule. But if you're not, that's OK too--there are other options. Here are the three quick ways to increase your profits without making more sales.