The situation
A global private equity sponsor has worked with Deal IQ across its portfolio for five years. We are embedded across a large part of that portfolio, and the companies bring us their technology contracts directly.
That has meant 206 negotiations across 29 portfolio companies, from platform renewals and new purchases through to smaller contracts, at companies of different sizes and stages.
What we found
Deal IQ is the cost optimization partner across a substantial part of this portfolio, so a company with a contract in front of it already knows where to send it. Some of these companies have a procurement function and some do not. Either way, an operating partner cannot personally sit across 29 companies' vendor agreements, and the sponsor does not have to.
Contracts come to us as they come up, large and small, and are negotiated rather than signed as presented. This has come to $16.5M in savings across the portfolio.
The result
- Negotiations
- 206
- Portfolio companies
- 29
- Largest single saving
- $3.9M, Citrix
- Total savings
- $16.5M
Five years of work across the portfolio, at companies of different sizes.
Takeaways
- 206 negotiations across 29 portfolio companies, large contracts and small
- Embedded across a substantial part of the portfolio, so contracts have somewhere to go
- Savings on contracts that would otherwise have been signed as presented
Frequently asked questions
What does working across a whole portfolio look like in practice?
A portfolio company sends Deal IQ the latest vendor quote and the deadline. From there they decide how involved they want to be, and the sponsor sees the savings across the portfolio.
Is it worth reviewing smaller contracts?
Most were not large. Together they came to $16.5M in savings, on contracts that would otherwise have gone through untouched.
How much work does this create for the portfolio company?
Very little. Deal IQ already has terms in place with the sponsor, so a portfolio company sends the latest vendor proposal and the deadline, then decides how involved it wants to be in the execution.
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