The fundamental principles of working capital are clear: reduce inventory and receivables whilst increasing payables balances. But many companies find it hard to optimise working capital. Our specialists provide you with dedicated expert resources to help drive cross-functional working capital improvements, keeping you free to deal with the everyday challenges of running a business.
Working Capital Management (WCM) initiatives release working capital and increase liquidity that can be used for strategic investments or the reduction of debt. In addition, profitability is enhanced due to an efficiency improvement within the processes and a reduction in cost of capital. Considering all of these effects, improving working capital inevitably leads to a sustainable increase on Economic Profit / ROCE and therefore to a higher corporate value.
The Private equity working capital study provides insight into the difference in working capital performance between PE portfolio companies and it's listed peers. Furthermore, it provides deeper insight into the various levers of improvement and the extent to which best performing PE companies have focused on these. This provides valuable input for all PE portfolio companies and other companies looking for further working capital improvement opportunities.
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