 Turning ERP Data into Profitable Growth Eager to learn how to turn ERP data into profitable growth? Don't miss our CEO, Pranav Garg (PG), on The Private Equity Podcast . Hear the full interview for expert insights!
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 Peak Margins joins the Microsoft for Startups Founders Hub to accelerate growth and product development
RANCHO PALOS VERDES, CALIFORNIA, USA, June 6, 2023/EINPresswire.com/ -- Peak Margins announced today that it has been accepted into the Microsoft for Startups Founders Hub, gaining access to technology and support that will help accelerate growth and product development. Founded by Alvarez and Marsal Private Equity Performance Improvement alumnus Pranav Garg, Peak Margins helps B2B companies expand EBITDA by 300+bps, by implementing a Continuous Margin Improvement™ program combining software and best-in-class execution. “We are the only offering purpose-built for Continuous Margin Improvement™ targeted towards B2B manufacturing and distribution,” says Pranav Garg. “It was a natural decision for us to build on the Microsoft Power Platform, a secure and scalable platform for data transformation, automation, and analytics. Joining the Microsoft for Startups Founders Hub speeds up our commercial and product development and enables us to create greater value for clients.” Microsoft for Startups, a global program dedicated to accelerating the trajectory of startups, provides members with exclusive access to a range of benefits including OpenAI and Azure credits, access to business and technical tools, and connections to a global network of mentors, investors, and partners. About Peak Margins Started by a Private Equity value creation veteran, Peak Margins helps B2B companies expand EBITDA by 300+ bps. Peak Margins achieves this through a Continuous Margin Improvement™ program combining software and best-in-class execution. Peak Margins transforms its clients' ability to measure what drives gross margin (by customer, product, salesperson, channel, territory, etc.) and installs the processes and structure to drive value capture.Luis Pomata Peak Margins [email protected] Visit us on social media: 1 http://www.peakmargins.com
Legendary investment manager Peter Lynch coined the portfolio management framework "Water the flowers, cut the weeds." In simple terms, this approach involves identifying good businesses (which he called flowers) and tending to them over long periods while exiting bad businesses (which he called weeds) as quickly as possible. This approach was later endorsed by none other than Warren Buffet and referenced in his 1988 Chairman's letter.
We are advocates of this approach for value creation at PE-owned companies. We have used it to achieve successful outcomes, with EBITDA expansion often in excess of 300bps of revenue. So why does a portfolio management framework that works across a portfolio of stocks work well for value creation inside an individual business? For three reasons. One, every business is a portfolio, of smaller pieces of business. Think of a piece of business as "product or service A, sold to customer B, in region C". Such a definition is not only rooted in reality, it is concrete enough to drive action in the field. Two, enterprise value creation is hard. It becomes easier when profitability data is available by piece of business to help discern flowers from weeds. After all, the EBITDA of the enterprise is the mathematical sum of profit contributed by the individual pieces of business, less shared fixed costs. Three, like investment portfolios, there is wide variation in performance between the good ("flowers") and bad pieces ("weeds") of the business. Weeds are particularly dangerous for their ability to silently leak value and derail performance. They are often perceived to be flowers, depleting resources that should have gone to flowers. There are several benefits to be gained by applying the framework “Water the flowers, cut the weeds" to your business.
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