Private Equity in a COVID-19 era
COVID-19 has created another great depression. The world will never be the same from a cultural, social, economic and business context. Business models will have to be rewritten, and many businesses will not survive. Some new ones will get created. Globalization may be dead. How long the recovery path will be is anybody’s guess.
This creates both challenges and opportunities for the investing community. Existing portfolio companies are likely to be struggling, Valuations will be seriously off. There are unlikely to be dividends this year. Unless you are a vulture investor, your dry powder is likely to be needed for your existing portfolio companies. For venture capitalist, the challenges could be similar but greater, as growth companies tend to be smaller, and while agile, more prone to catch a flu!
In these challenging times, Cedar can be a valuable partner for investment firms. Its 30-year global multi-industry experience, knowledge of the PE industry due to past work for leading funds, and its proven track record of transforming firms on a fast-track basis can help funds across the investment cycle.
- Jointly work with the fund and the promoter to build new business models and help in executing an AGILE transformation of the business across all areas – finance, customers, products, sales, marketing, sourcing/manufacturing, organization and technology.
- Fast-Track and surgical cost-reduction across all areas of the business. A significant part of this is organizational transformation with restructuring, and headcount reduction.
- Assessment of the fund portfolio & strategy, and help build 2.0 model as the investment hypothesis, and target sectors would have shifted.
Let’s ride the wave together.