Private Equity Procurement Consulting

Private Equity Value Creation

Former McKinsey and BCG consultants who do the work. Not just the deck.

We partner with mid-market PE funds and operating partners to drive measurable EBITDA improvement across the full hold cycle. Our senior team embeds directly inside portfolio companies, runs procurement programs, and manages vendor negotiations without burdening the company's team. The leave-behind is value flowing to the bottom line.

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24%
Average reduction in addressable outside spend across PE engagements
100+
Categories covered across numerous industries, from direct materials to SG&A
6–12 Months
Typical engagement length, structured and results-focused from spend discovery through realized savings
Results-Based Fees
Fee structures tied to realized savings, aligning our incentives with the outcomes you actually need
What We Do

Core Procurement Value Creation Levers

PE value creation through procurement is a structured set of interventions applied across the hold cycle. These are the levers Inside Consulting executes for PE-backed portfolio companies.

01
Outside Spend Reduction
20–25% reduction in addressable spend

Mid-market companies rarely have dedicated procurement staff, so vendor pricing goes unchallenged for years. We apply competitive sourcing and leverage-based negotiation across SG&A, IT, facilities, and indirect categories to recover 20 to 25 percent of addressable outside spend without disrupting operations.

Savings are contracted and verified before the engagement closes. Not projected. Not estimated. Realized.

02
100-Day Procurement Sprint
Early wins that fund the program

The 100-day window sets the tone for the entire value creation program. We run category-level diagnostics, build the spend baseline, and begin executing negotiations while the integration is still in motion.

The goal is to generate early EBITDA wins in the highest-impact categories and establish the procurement governance structure that sustains savings across the full hold period.

03
Zero Based Budgeting (ZBB) and Spend Governance
10–15% additional savings beyond negotiation alone

Zero-based budgeting applied to outside spend categories establishes a clean cost baseline and eliminates budget drift before exit. Each category is justified from the ground up rather than anchored to prior-year actuals.

ZBB consistently surfaces 10 to 15 percent in additional savings beyond what vendor negotiation captures on its own, and creates the documented cost structure buyers expect in diligence.

04
Post-Merger Integration Sourcing
Synergies built bottom-up, not from benchmark multiples

PMI sourcing synergies are systematically underestimated at deal close. We consolidate vendor relationships, rationalize the supply base, and apply combined-entity leverage to existing contracts across add-on acquisitions.

Savings targets are built from actual spend data across both entities, not estimated from benchmark multiples. The Ntirety engagement delivered $4.3M in sourcing synergies — three times the pre-merger estimate.

05
Category-Agnostic Spend Coverage
100+ categories across every major industry

Inside Consulting is industry and category agnostic. We have sourced over 100 categories across technology, healthcare, industrials, and business services — from SG&A, IT, and professional services to direct materials, logistics, facilities, and benefits.

Most PE-backed companies have never had a dedicated procurement function. That means every spend category is an opportunity, and we bring the same structured sourcing methodology to each one regardless of industry vertical.

06
Pre-Exit Margin Improvement
A cost structure that holds up in diligence

In the final 12 months of the hold period, we clean and document the cost structure to support a compelling EBITDA narrative at exit. Savings are contracted, verified, and attributable — not projected in a spreadsheet.

Buyers scrutinize cost bases in diligence. The story needs to hold up under examination and translate directly into valuation. We have helped clients return to profitability ahead of a successful sale.

The Opportunity

Most portfolio companies are leaving procurement value on the table.

Mid-market platforms rarely have a dedicated procurement function. Outside spend representing 15 to 30 percent of revenue gets managed reactively by department heads who have neither the time nor the leverage to negotiate effectively.

No Procurement Function

SG&A and indirect spend categories are managed by department heads focused on operations, not cost optimization. Vendor relationships drift, contracts auto-renew, and pricing goes unchallenged for years.

Real, Accessible Savings

Savings of 20 to 25 percent on addressable spend are consistently achievable. For a $150M platform, that is often $3 to $6M in annual EBITDA improvement without headcount reduction and without disrupting operations.

Bandwidth Is the Constraint

Operating partners know the opportunity exists. Executing on it without pulling the portfolio company's management team off their core priorities is exactly the problem we are built to solve.

Why Inside Consulting

Built for PE. Not adapted for it.

There is no shortage of consultants who will assess your portfolio company and produce a findings report. We are not that firm.

McKinsey and BCG Pedigree. Mid-Market Focus.

Our partners trained at McKinsey and BCG. We apply that rigor to mid-market companies that do not have the internal horsepower to run these programs, at a fraction of the cost of a big-firm engagement.

Senior Team. Hands-On Execution.

We embed as an internal procurement function. Your portfolio company's management team stays focused on the business while we run vendor negotiations, manage the sourcing process, and track every dollar of savings to close. No handoffs to junior staff.

Dollars, Not Decks.

We do not produce a findings report and hand it off. We stay until the savings are contracted, verified, and flowing. Our success is measured the same way yours is: by what actually lands on the P&L.

Fees Structured at Risk.

Our fee structure is tied to delivered results. We offer at-risk, hybrid, and fixed-fee arrangements. We are willing to put meaningful fees at risk because we are confident in the outcome.

PE Fluent.

We speak the language of private equity: EBITDA improvement, MOIC, value creation plans, and 100-day priorities. Our procurement engagements are designed to appear on a board deck and survive due diligence.

No Software. No Platform.

We do not sell a procurement platform or spend analytics tool alongside our services. Our only product is savings. No conflicted recommendations and no technology implementation dragging out the timeline.


Client Results

What we deliver for PE-backed platforms.

A sample of our work across PE-backed companies, spanning healthcare, technology, and industrials.

Healthcare · Outside Spend · ZBB

$6M+ annual EBIT

4-year partnership spanning strategic sourcing, zero-based budgeting, and SaaS net revenue retention for a PE-backed healthcare technology platform.

View Case Study →

Technology · Outside Spend · Revenue

$11M+ annual EBITDA

$5M labor savings, $2.7M vendor reduction, and $4M ARR improvement via revenue leakage elimination and pricing optimization.

View Case Study →

Technology · PMI · Outside Spend

$4.3M sourcing synergies

3x the pre-merger estimate. Creative application of leverage well beyond scale alone, realized across a complex post-merger integration.

View Case Study →

Healthcare · Outside Spend

$2.7M vendor spend reduction

Reduction in call center costs ($1.9M) and commercial printing costs ($800K) at a PE-backed healthcare engagement platform.

View Case Study →

Basic Materials · Turnaround

$12M annual cash flow improvement

Returned to profitability in under 18 months and supported a successful sale to a strategic buyer.

View Case Study →
View All Client Results

PE Funds We Have Worked Alongside

We have worked alongside leading mid-market PE funds since 2005.

Welsh Carson Anderson and Stowe Oak HC/FT The Halifax Group Pamlico Capital Platinum Equity Clayton Dubilier and Rice Vista Equity Partners KKR Golden Gate Capital CVC Capital Great Hill Partners Littlejohn and Co Rubicon Founders Welsh Carson Anderson and Stowe Oak HC/FT The Halifax Group Pamlico Capital Platinum Equity Clayton Dubilier and Rice Vista Equity Partners KKR Golden Gate Capital CVC Capital Great Hill Partners Littlejohn and Co Rubicon Founders

Further Reading

For PE operating partners.

Capturing Procurement Value in Multi-Site Healthcare Acquisitions

Operator Playbook

Capturing Procurement Value in Multi-Site Healthcare Acquisitions

Read Article →
SG&A Procurement in the AI Era

AI & Procurement

SG&A Procurement in the AI Era

Read Article →
Sourcing: The Most Underexploited M&A Synergy Lever

M&A Strategy

Sourcing: The Most Underexploited M&A Synergy Lever

Read Article →
FAQ

Common questions from PE operating partners.

PE value creation consulting is not a technology implementation, a spend analytics dashboard, or a consultant report with recommendations your team has to execute. It is the process of replacing fragmented, site-level supplier relationships with a structured, leverage-based supply strategy built on cost analysis, competitive sourcing, and governance that holds.

What does PE value creation consulting include?
PE value creation consulting covers the full set of operational and strategic interventions used to improve EBITDA across the hold cycle. For procurement-focused engagements, this includes outside spend reduction, 100-day sourcing sprints, zero-based budgeting, post-merger integration sourcing synergies, category-agnostic spend coverage across 100+ categories, and pre-exit margin improvement. Inside Consulting executes all of these directly inside portfolio companies without requiring the management team to run the process.
How much EBITDA improvement can procurement deliver for a PE portfolio company?
For mid-market companies, procurement value creation typically delivers 20 to 25 percent reduction in addressable outside spend. For a $150M revenue platform where outside spend represents 20 percent of revenue, that translates to $6 to $7.5M in annual EBITDA improvement without headcount reduction. Inside Consulting has delivered results ranging from $2.7M to $12M+ in annual EBITDA improvement across individual PE-backed engagements.
What is a 100-day procurement plan for PE portfolio companies?
A 100-day procurement plan for a PE portfolio company is a rapid sourcing sprint targeting the highest-impact outside spend categories in the first quarter of the hold period. It typically includes a spend baseline diagnostic, category prioritization, vendor negotiation kickoff, procurement governance setup, and zero-based budgeting in key areas. The goal is to generate early EBITDA wins that fund the rest of the value creation program while establishing the structure for sustained savings across the hold period.
What outside spend categories does PE procurement consulting cover?
Inside Consulting is industry and category agnostic. We have sourced 100+ categories across technology, healthcare, industrials, and business services, covering everything from IT and SaaS, professional services, and benefits to direct materials, logistics, facilities, and marketing spend. The categories prioritized in any engagement depend on spend concentration, contract timing, and the leverage available in each category. Every outside spend category is an opportunity, and we apply the same structured methodology regardless of industry or category type.
How are PE procurement consulting fees structured?
Inside Consulting offers at-risk, hybrid, and fixed-fee engagement structures for PE-backed portfolio companies. At-risk arrangements tie fees directly to realized savings against a defined baseline, aligning consultant incentives with PE return targets. Hybrid structures combine a modest retainer with a performance component. Fee structures are designed to work within PE hold periods and can be calibrated to the 100-day sprint, full hold period, or pre-exit margin improvement timeline.
When in the hold cycle should a PE fund engage a procurement consultant?
The highest-return entry point is at or before acquisition, with a procurement diagnostic during due diligence and a sourcing sprint in the first 100 days. However, meaningful savings are achievable at any point in the hold cycle. Post-merger integration sourcing captures synergies after add-on acquisitions. Pre-exit margin improvement in the final 12 months cleans the cost structure and supports a stronger EBITDA narrative at sale. Inside Consulting has entered engagements at all four stages of the hold cycle.
How is Inside Consulting different from large consulting firms for PE value creation?
Inside Consulting partners trained at McKinsey and BCG and apply that analytical rigor to mid-market portfolio companies at a fraction of the cost of a large-firm engagement. Unlike large firms, Inside Consulting does not produce findings reports and hand them off. The senior team embeds directly inside portfolio companies, owns the vendor negotiations, and stays until savings are contracted and verified. Fees are tied to realized results. There is no software platform to implement and no junior staff running the program.

Most engagements start with a single conversation.

We can scope a diagnostic or a full program and structure fees to align with your hold period and return targets. No junior teams. No handoffs. You will speak with a partner from the first call.

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