SSA & Co offers guidance and expertise throughout the ownership cycle of portfolio companies, from pre-acquisition, to post acquisition and exit with an eye on creating additional value at each step of the way.
During the purchasing phase, the firm provides insights on EBITDA, cash flow and other metrics of acquisition targets during operational due diligence in M&A. While private equity firms often keep this type of expertise in-house, lenders typically require a third-party perspective on acquisitions. That’s where SSA comes in.
Armed with perspectives from SSA, firms may gain enough visibility to put in a winning bid, or make a quicker bid outside of the auction price, if it offers more value upon closer scrutiny. Lenders may back more leverage to improve profitability at a target after a report by SSA.
SSA Senior Advisor Paul de Janosi and Managing Director Jeff Krajacic have worked with at least 40 global private equity firms.
“We’ll help win the business up front, and then provide guidance to run the company,” de Janosi said.
SSA divides its private equity clients into three major buckets: firms with operation teams, firms that use operating partners, and traditional financial buyers. It’s the firms with in-house operating teams that comprise the largest chunk of its clients, because these pros best understand the value that SSA offers, de Janosi said.
SSA works with technology system architecture with a focus on building faster, better ways to manage platform companies and their add-on deals, he said.
Among its newer offerings, SSA continues to develop programs that deploy radio frequency identification (RFID) tags and other sensors from suppliers such as Texas Instruments, Samsung, Analog Devices and STMicro to track items and help clients with distribution, customer service and other business functions.
Operators of warehouses, factories or even regional distribution businesses may benefit by tracking parts, inventory, or individual drivers and their vehicles with guidance from SSA. The firm sets up clients with the ability to view data and results on their computers or even from smart phones.
Executions of this apporach may involve chips on all the equipment used in mining and industrial operations. The technology helps identify usage rates of gear that may need to be replaced, without waiting until it breaks down and causes costly delays.
“The technology offers a very big step in moving from preventative maintenance to predictive maintenance,” de Janosi said. “We’re marrying big data with operations and no one else has done that as well as us.”
Launched as the Six Sigma Acadamy 21 years ago by Mikel Harry and others who developed the methodology at Motorola, SSA successfully trained thousands of its so-called “black belts” at General Electric Co, DuPont, Ford and Allied Signal to improve quality.
SSA is part of G100 Companies, a family of firms that serve CEOs.