Summary
Evalueserve helped a PE client to manage and analyze its portfolio company’s unstructured data and profitability trends. We developed a customized Portco Support solution that focused on structured asset tracking, identified data discrepancies, optimized assets in line with industry benchmarks, and helped the client save costs and capitalize on potential market opportunities.
Challenge
The client, a private equity firm with a focus on the transportation and logistics sector, wanted to monitor the assets held by one of its portfolio companies. It wanted to track changes related to the portfolio company’s truck and trailer fleet (sale / purchase, ownership change, etc.). The client also wanted to understand how the portfolio company could reduce its repair and maintenance costs, and improve asset efficiency.
Solution
Evalueserve developed a customized asset tracker that captured details of all the fleets. The tracker is updated regularly and provides the following information to the client:
- Data validation: The portfolio company had assigned one unique identifier (unit ID, VIN, etc.) to multiple assets. Evalueserve validated the data, identified gaps, and helped the client to eliminate duplicate entries of assets’ details for easy tracking.
- Data re-organization: The data on ownership (owned, leased, outsourced, etc.) and type of asset (tractor, trailers, etc.) provided by the portfolio company was haphazard. Evalueserve combined the data points and structured them to cull insights such as the age of assets, mileage, ownership status, and model type / name.
- Data analysis: Evalueserve provided a weekly analysis of asset profitability, drivers, revenue generated, and cost incurred at an asset level.
Business Impact
Our customized Portco Support solution not only made the portfolio company’s fleet valuation ready but also helped the client to
- Compare assets submitted for valuation against their market value on a YoY basis
- Seamlessly track assets with unique identifiers
- Identify errors in asset classification
- Develop a detailed understanding of asset aging and ownership
- Take timely decisions to sell off assets (if and when required)
- Develop an understanding of profitability, which in turn helped it to save repair and maintenance costs, and take advantage of market tailwinds