Optimize the pricing and sales power of portfolio companies
The optimization of sales and price management is of outstanding importance in value enhancement, because: Even an average 2 percent priceincrease means that the enterprise value is increased by 40 percent for a given EBITDA margin of 5 percent. International and regional private equity firms such as KKR, Triton, Armira, IK-Investment Partners, BWK etc. are among our clients.
What can private equity firms do?
In order to exploit the full potential of optimized pricing measures, price management must be viewed as a whole. At the end of a successful pricing project, therefore, there are no isolated individual measures; rather, they are embedded in the overall context. The procedure for achieving this can be divided into three steps:
1. "Find the money" – Commercial due diligence: Evaluate the market position and digital market potential of your target.
Using a profound set of methods and benchmarks, we analyze your target companies and their business models in the market and competitive environment. The central point of the commercial due diligence is the examination of the value creation potential and the digital maturity level as well as the comparison with the existing business plan.
2. "Get the money" – 360° Sales & Pricing Audits: Identify the sales and revenue potential of your portfolio
Conducting a 360° Sales & Pricing Audit is the first meaningful step in identifying the sales and revenue potential of your portfolios. At the end of the three- to four-week projects, we provide a fact-based prioritization of the various optimization levers and a quantitative estimate of the expected impact on revenue. Often, initial short-term measures can already be initiated in the audit projects, which have an immediate profit effect.
3. "Make it sustainable" – Implement key measures to increase value
The value enhancement measures we develop and implement together with our customers are as diverse as the DNA of our customers themselves. We do not have a "one-size-fits-all" solution.
Experiences and project examples
In hundreds of projects, Prof. Roll & Pastuch has been able to implement the following revenue and profit levers with private equity companies, among others:
- Monetization of added product value: introduction of value pricing
- Increasing sales in digital sales channels: development and implementation of a multi-channel & Amazon strategy
- Marketing and pricing of software and digital services: Shift from perpetual licensing to SaaS models
- Increasing efficiency and performance in sales: Introduction of performance-based compensation models for the sales force
- Realignment of discount and condition systems: Value-based customer segmentation and selective rebate repatriation
What does this look like in practice? Here’s what our clients have to say:
As part of a project, the consultants at Prof. Roll & Pastuch optimized the licensing model and pricing architecture of one of our portfolio companies. We were particularly impressed by their methodological expertise in software pricing and SaaS models. The collaboration was excellent on both a professional and personal level. I look forward to further projects with Roll & Pastuch.
R&P conducted an audit of the price management of one of our portfolio companies and defined corresponding measures. Thanks to the long-standing experience and expertise of Roll & Pastuch, the key leverage points were quickly identified and the profit potentials quantified.
We engaged Prof. Roll & Pastuch to analyze and implement selected pricing and sales measures. We were very satisfied with the project results and the targeted, pragmatic execution. The projects were characterized above all by close collaboration between management and consultants. I expect that we will continue to work with Prof. Roll & Pastuch in the future.
The consultants from Prof. Roll & Pastuch supported us in analyzing and optimizing the sales management of one of our portfolio companies.
In addition to their excellent methodological expertise, strong commitment, and ‘mid-sized company compatibility,’ we would like to emphasize that, with the support of Prof. Roll & Pastuch, we were able to identify the right sales levers, implement them promptly, and achieve measurable improvements. We will gladly continue to rely on the expertise of Prof. Roll & Pastuch in the future.
Prof. Roll & Pastuch supported a portfolio company in its pricing. Thanks to Prof. Roll & Pastuch’s many years of experience and expertise, the most important levers were quickly uncovered and quantified. The projects were particularly characterized by close cooperation between management and consultants. I expect that we will continue to work with R&P.
We enjoy working with Prof. Roll & Pastuch as a competent and reliable partner in the areas of pricing and sales management. They combine excellent expertise with a practical, hands-on approach. Our collaboration has always been efficient, solution-oriented, and tailored to our individual needs.
We will be happy to answer your questions and provide you with further information.
Gregor Buchwald
Gregor Buchwald is Managing Director of Prof. Roll & Pastuch. He has over 20 years’ specialist industry knowledge and consulting experience. His focus is on the areas of strategy, pricing and sales. His customers include multi-national companies as well as medium-sized B2B customers. Mr Buchwald has also written numerous publications about strategy, sales and pricing and speaks at numerous events.
Michael Fechner
Michael Fechner is Partner at Prof. Roll & Pastuch. For more than 18 years he consults international corporations and medium-sized companies world-wide. Before joining Roll & Pastuch, he worked as a project manager at Simon-Kucher & Partners and spent several years in London. His focus is on price management, sales and strategy. To support companies in these areas Mr. Fechner publishes articles, conducts seminars and speaks at various events.