Retained Advisors for Deal and Portfolio Operations Support
By: Chuck Castine

GenNx360 Capital Partners values the advice, insight, and level of hands-on engagement received from its Retained Advisors Team.  The GenNx360 RAT Team, as they are affectionately referred, will go anywhere at any time to ensure that GenNx360’s investment goals are achieved either in the deal due diligence process or post-deal closure in support of the operating company.  

GenNx360 Retained Advisors are not just your "ordinary" consultants.  In addition to being focused problem solvers, GenNx360 Retained Advisors …

  • Are big picture…strategic in nature…identify risks and opportunities…can assess business models
  • Coach and assist portfolio companies in problem solving and skill development
  • Provide an early-warning on emerging leadership, operating, sales, and environmental issues
  • Are hired and retained on an ongoing basis, as needed
  • Are capable of being hands-on board members on any acquisition and a coach for our portfolio CEOs/CFOs/Senior Management

GenNx360 Capital Partners is a middle market private equity firm that focuses its acquisition activity on business-to-business companies in the industrial, logistics, business services, and specialty chemicals space.   Generally, these companies lack the management skill bandwidth necessary to address the critical leadership challenges associated with both revenue growth and margin expansion.    As a result, GenNx360 requires that its Retained Advisors have a backgrounds as senior level operating or functional management at an executive level where organizational leadership skills were critical.  Typically, they have a demonstrated knowledge base that is “an inch wide and a mile deep” in the subject matter expertise necessary to supplement the GenNx360 team.   Below are some specific areas where its Retained Advisors have assisted the GenNx360 team in acquisitions and coaching Portfolio Company CEOs towards improving business performance:

Deal Support

  • Leadership assessment
  • Business model and strategic assessment to understand execution opportunities and risks
  • Organization’s effectiveness in utilizing processes and assets to achieve objectives
  • Identifying organization gaps required to achieve revenue and margin expansion
  • Environmental review and risk assessment

Portfolio Company Support (Specific executed examples in our Funds)

  • Debottlenecking a silicone additives plant and creating additional free capacity
  • Environmental assessment to minimize acquisition risks and implementing safety metrics
  • Developing consistent supplier scorecards to align vendors’ goals with that of the business
  • Driving an operating culture of achieving 5% year-over-year total cost productivity
  • Developing operating financial metrics to better manage impacts of volume, price, and mix
  • Developing sales force compensation plans to drive the right business outcomes
  • Developing marketing and sales plans to diversify customer base and enter new markets
  • Improving customer service by driving a 50% improvement in on-time delivery and lead times

GenNx360 strives to ensure that both the Portfolio Company and its Retained Advisors are continually learning and having fun. This practice has facilitated best practices sharing flows not only from the Retained Advisors but also from the Portfolio Companies. Throughout the year, GenNx360 provides various opportunities for Retained Advisors and Portfolio Companies to discuss best practices and challenges as well as gain a different perspective from individuals who may have attacked their problem successfully from a completely different angle. Again, GenNx360’s goal is to not only provide the best possible resources, but also to leverage every possible resource to help its Portfolio Companies reach for the stars.

GenNx360 currently has over 12 Retained Advisors who are utilized on a case-by-case basis, depending on the business issue to be addressed.    As it expands its footprint in different industries and business models, the need for Retained Advisors continues to grow.   For example, in the recent farm machinery business it acquired, GenNx360 expanded its Retained Advisors Team to include an individual with deep experience in agricultural marketing through dealer networks and in the economics of farm operations.    Additionally, its growth into a more industrial business requiring machining and tooling operations has created the need for a Retained Advisor with strong experience in machining operations and machine tool sourcing.    As it grows, GenNx360 will require additional individuals with industrial sales, manufacturing and value engineering experience to supplement its operating team.

Retained Advisors are not employees of GenNx360 but, as noted above, provide transaction and portfolio company support, and may be appropriately compensated by investment funds or portfolio companies for the role they fill for such businesses.