Strengthening Portfolio Strategy through Benchmarking
Objective and Scope:
The client, a leading private equity firm, wanted to monitor the custom software and consulting sector to support one of its portfolio companies. For this, it sought Benori’s support in: Developing a process for quarterly tracking and benchmarking of financial and operational metrics for various public companies in the sector Analyzing the tracked business metrics to gain insights around the growth and performance of its portfolio company, as well as sector growth and performance
Approach:
The approach involved defining benchmarking parameters, identifying companies for benchmarking, and establishing data collection methods. This was followed by the creation of quarterly reports, wherein we tracked, analyzed, and shared various financial and operational metrics to monitor the company and sector performance on an ongoing basis. We created consolidated and summarized views to help compare the performance of companies in scope.
Impact:
The study helped the client in: Making data-driven decisions and improving the strategy for its portfolio company Gaining ongoing visibility into sector trends and competitive positioning through structured benchmarking Leveraging supplementary insights such as statements by the leadership of various companies, which provided an overview of the company’s strategy and future projections
