LogicSource launches PE vertical to maximize portfolio company value

Procurement firm LogicSource has launched a vertical for PE firms to maximize the value of their portfolio companies, Private Funds CFO has learned.

LogicSource will identify ways for firms to reduce indirect expenditures, which is critical for portfolio companies across all stages of investment, noted managing partner Tom Stolarski, who is leading the new private equity offering.

Stolarski explained that PE firms are looking to drive cost savings and increase shareholder value for portfolio companies when selling the business or reinvesting into a growing business. He said LogicSource has been providing these services informally but has decided to launch a dedicated service line for PE firms.

Indirect spending, such as marketing, logistics and labor, can consume up to 20 percent of a company’s revenue, and it can have meaningful impact on the bottom line. Stolarski said LogicSource’s private equity solution can help identify areas for cost saving and better position the company for future growth or sale.

“Private equity firms lack strong visibility across these spend categories across all their portfolio companies. Through our due diligence on the companies, we give private equity firms actionable insights by identifying areas where they can immediately unlock cost savings upon the close of deal,” Stolarski explained.

Similarly, when positioning a portfolio company for an exit, LogicSource works with its private equity clients to identify and execute rapid cost savings initiatives to ensure the company is presented to the market in the strongest position possible.

“Private equity and finance leaders are facing uncertainty in the year ahead and it is more critical than ever that every dollar spent be reviewed, both to unlock value in prospective investments and to best position an asset in uncertain times,” Stolarski said in a statement.