Working with us: creating value and operational improvements
- BlueGem believe that in the mid-market there is significant potential to generate substantial returns through active and entrepreneurial portfolio management and development of portfolio companies rather than just financial engineering.
- BlueGem is a business builder, with a pro-active and constructive approach to motivating and supporting management teams, working in partnership with them in order to expand fundamentally sound businesses and build companies operationally, strategically and financially.
- Once BlueGem identify the value gap and the value creation levers, we focus 100% on extracting this value, with an intense and hands-on approach to implementing the value creation strategy, addressing four main actions:
- De-risk the investment: secure a strong and stable capital structure, resolve quickly problematic situations, consider closure of loss making operations, renegotiate conditions with suppliers, cost cutting, supplement the team.
- Introduce financial discipline: strict control of working capital and inventory, make-or-buy analysis, calculations of return on capital employed and payback period for projects.
- Build the platform: upgrading the team, upgrading IT, improving the supply chain, introducing best-in-class processes, setting up fair and effective corporate governance rules.
- Focus on revenue growth and expansion:
- Organic - new products and geographies, initiatives to increase market share.
- Acquisitions - complement product offering, faster penetration of new countries, repositioning of the company, scale efficiencies.