The Purple Problem
The industrial sector is at the center of modern political discourse – its heralded place in the American economy is a unique area of right-left common ground. It’s where red and blue blend to siege on the purple problem – bringing jobs back to America.
But where politicians see purple, private equity sees green. Private equity recognizes the transformative potential of industrial consolidation, digitization, automation, and professionalization. From the generational transition of industrial leadership (leading to first time institutional ownership), to the ongoing industry consolidation via acquisition activity. From the digitization of products, to the automation that makes the manufacture of those products faster, quicker, and cheaper. The industrial sector remains a promising target for the professionalization of process and value creation levers that the PE industry can bring to bear.
Where We Play
At Accordion, we help our clients leverage sector headwind opportunities (supporting platform acquisitions, add-ons, roll ups, carve-outs, and merger integration). And, just as critically, we help management navigate the professionalization challenges presented by institutional ownership (supporting enhanced business analytics, creating more auditable and sophisticated financial reports, etc. etc. etc.). We help industrial clients implement the value creation levers that turn purple problems into green rewards.
Greater visibility into customer and market metrics will allow the most innovative companies to target their products and services to customers that best serve the bottom line.