Uncover Procurement Value Before Due Diligence

Create Value Before the Deal Starts

Private Equity (PE) firms are operating in an increasingly complex, costly, and competitive deal environment. There is now pressure to create value faster and more efficiently across the investment lifecycle while demonstrating real operational expertise. In this context, gaining early clarity on value creation potential is a strategic advantage. H&Z’s Quick Value Creation Plan (QVCP) delivers exactly that: a fast, high-impact pre-due diligence assessment that uncovers operational improvement opportunities early, giving you the edge before the bidding begins.

A New Reality

For years, Private Equity firms operated in a world of low interest rates, abundant leverage and fast exits. The formula was clear: buy high, cut costs quickly, and sell within three to five years. Today’s market has rewritten that script.

Today, capital is more expensive, competition is driving up valuations, and holding periods are stretching to between five and seven years. The emphasis has shifted from short-term cost-cutting to sustainable EBITDA growth. One of the most effective, and often underused, levers to achieve that is procurement.

The Path to Early Value Creation

In most businesses, managing external spend represents the largest and fastest area of impact. Yet procurement is often overlooked in the early stages of a deal. Why? The focus tends to be on financial performance and market positioning. Procurement can be seen as secondary, too time-consuming, or simply outside the PE firm’s core expertise.

That’s a missed opportunity. H&Z’s Procurement-led Quick Value Creation Plan (QVCP) - conducted before due diligence - provides early visibility into operational improvement opportunities - particularly focused on external spend, SG&A, and working capital levers. Delivered in as little as 3-6 weeks, the QVCP equips deal teams and operating partners with actionable insights and monetary saving potentials to validate the investment thesis, uncover hidden upside and flag potential risks before making a firm commitment.

In an industry where speed, insight, and execution discipline are increasingly defining success, the QVCP offers a cost-effective, low-friction way to gain an early edge. Whether you are screening multiple targets or preparing for exclusivity, the QVCP ensures you move forward with confidence, clarity and a head start on value creation.

Today, investment committees are demanding more than just a strong financial model. They want to see credible, data-backed plans for value creation - and they want those plans to guide underwriting and financing from day one. A QVCP meets that need by providing a focused, fact-based assessment of where value lies, typically across direct and indirect spend, supplier consolidation, working capital and synergy opportunities.

In competitive auctions, this approach offers a critical edge. It equips deal teams with sharper insights and a more compelling story for sellers. Post-close, it ensures that value creation doesn’t start from scratch, but from a roadmap aligned with procurement and reduces the likelihood of surprises.

Driving Value Through Procurement Transformation

The Quick Value Creation Plan (QVCP) is carried out on-site, working closely with the potential target company. Our experienced consultants lead the process, drawing on H&Z’s deep knowledge of procurement and value creation. This expertise comes from years of hands-on work delivering real results across many different industries.

During the process, we take a close look at all major spending areas—covering both direct and indirect materials. Each category is carefully reviewed to identify where savings can be made. Our analysis follows H&Z’s proven methodology and is further enhanced by proprietary AI tools that combine internal benchmarks with the insights of our expert teams.

H&Z has worked with several PE-backed companies to identify and realise this potential. In one project, H&Z supported a European construction company backed by private equity, where procurement was recognised as a key area to improve profitability. The team conducted a thorough assessment of spend across direct and indirect materials and subcontracting services, identifying commercial and technical savings opportunities that delivered double-digit P&L improvements. In another engagement with a PE-backed diagnostic services provider, the implementation of a comprehensive Value Creation Plan resulted in €10 million of realised value.

While these projects took place post-deal, the same principles apply pre-deal and even before due diligence. Early procurement insights don’t just drive operational value later; they enhance planning upfront. That means more informed go/no-go decisions and a stronger position when bidding in a competitive process.