Representative Assessment Engagement

One of the largest U.S. private equity groups retained AEG to assist it in considering an add-on investment in an existing portfolio company. The company's management had developed a strategic plan that on its face appeared unduly aggressive.

Under extreme time pressure, AEG dissected the key drivers of the plan. We assessed the plan's feasibility in light of industry conditions, the lean manufacturing objectives at the core of the anticipated turnaround, inherent execution risk, and the skills of the team expected to put the strategy into action.

Based on our assessment and identification of key risks, AEG recommended support for the management group's approach and recommended in favor of making the investment. AEG also recommended the most appropriate structure for the investment. The private equity group completed an add-on investment and the company was afforded the financial latitude necessary to execute its business plan.