Private Equity Firms Enhance Efficiency Through Third-Party Specialists Private equity firms like Blackstone, Carlyle, Apollo, and KKR have long been known for driving profitability and efficiency. However, a new trend is reshaping their cost-cutting and operational improvement approach....

Private equity firms like Blackstone, Carlyle, Apollo, and KKR have long been known for driving profitability and efficiency. However, a new trend is reshaping their cost-cutting and operational improvement approach. Value acceleration services, led by emerging companies like SIB, Accenture, and Coupa, help businesses uncover millions in savings without drastic internal cuts or layoffs. Instead of the traditional slash-and-burn method, firms now outsource tasks like logistics management, utility audits, and contract negotiation to specialists who guarantee savings—or don't get paid.

According to Eric Steele, SIB's Chief Revenue Officer, this shift focuses on maximizing operational efficiency without straining internal teams. "We target areas companies often see as fixed costs," he explains. Our job is to uncover hidden savings and deliver value, enabling businesses to reinvest those funds into growth initiatives."

A Shift in Focus: From Layoffs to Optimized Operations

Historically, cost-cutting often meant layoffs or reduced investments. The rise of value acceleration services has shifted the focus to optimizing operations by outsourcing tasks that internal teams may lack the expertise or capacity to handle.

"Many businesses assume costs like shipping and telecom are fixed," Steele notes. "We dig deeper, renegotiate contracts, and find savings that might not be visible to an internal team focused on daily operations."

David Moergenstern, President of Accenture in Canada, adds, "Smart operations lead to greater productivity and predictability."

This new focus explains why private equity firms turn to providers like SIB, Corcentric, and Accenture. Instead of building in-house teams to manage cost optimization, PE-backed companies rely on external experts who bring specialized knowledge and can quickly deliver measurable results.

Why Private Equity Firms Are Embracing Value Acceleration

Private equity firms face relentless pressure to create value for investors, especially as rising costs and supply chain disruptions make profitability harder to achieve. Value acceleration services offer a solution by targeting areas not traditionally scrutinized—such as utilities, waste management, and SaaS contracts.

"These aren't the obvious places most companies look to cut costs," explains Steele. "But the savings are there, and we have the expertise and data to unlock them."

For private equity-backed companies, the benefits are clear: higher profitability without compromising growth initiatives. "It's about operational improvement," Steele says. "We help businesses run more efficiently, creating opportunities for reinvestment in strategic areas. Over the last six months, we've doubled our private equity team to meet growing demand from this industry."

Real-World Impact: How Value Acceleration Saves Millions

Value acceleration services deliver results across various industries, from Fortune 500 companies to mid-sized businesses and even public sector organizations. One example is a Fortune 100 company partnered with Shipware, a subsidiary of SIB, to optimize its shipping costs. With over $60 million in annual shipping volume, the company cut its parcel shipping costs by 14%, resulting in $8.5 million in annual savings.

"It's not just about cutting costs," says Steele. "That company reinvested those savings into upgrading customer service and improving operational processes, which ultimately made them more competitive."

Public institutions are also benefiting. The County of San Diego worked with ProcureAmerica to audit over 1,500 utility accounts. They found $2.85 million in savings, redirected into critical public services. "This shows the wide-reaching potential of value acceleration," Steele explains. "Even government organizations are finding ways to optimize costs."

Outsourcing Efficiency: A Low-Risk, High-Reward Strategy

Value acceleration is appealing due to its low-risk structure. Firms like SIB, Corcentric, and Expense Reduction Analysts often use a contingency-based pricing model, meaning companies pay only if savings are achieved. This approach minimizes financial risk and maximizes potential rewards.

"For businesses hesitant to invest in cost-saving initiatives, this model is a game-changer," Steele says. "They have nothing to lose—if we don't save them money, they don't owe us anything."

The cost-saving model fits seamlessly into the value-creation strategies of private equity firms, which aim to enhance profitability without jeopardizing long-term growth. By partnering with outside experts specializing in logistics, utilities, and contract management, PE firms enable their portfolio companies to focus on core business operations. At the same time, specialists handle the granular details of cost optimization.

The Broader Implications for Businesses

While logistics and utilities are common initial targets for value acceleration services, companies are now exploring new areas for optimization. These outsourced experts scrutinize software contracts, workforce management, and marketing expenses.

"Companies are beginning to see that value acceleration isn't just about cost savings," says Steele. "It's about agility. By freeing up capital, businesses can reinvest in areas that drive growth, like customer experience and technological innovation.

Private equity firms are especially well-positioned to leverage these services. Value acceleration providers are often brought in shortly after an acquisition, allowing PE firms to identify areas for operational improvement quickly. "It's a strategy that works across industries," Steele points out. "We're seeing results not just in traditional sectors like logistics, but in more complex areas like SaaS and workforce management."

The Future of Value Acceleration

As businesses grapple with rising costs and operational complexity, value acceleration services are becoming a core part of their strategies. Companies like SIB are already uncovering millions in savings, and the future promises even more growth as the focus expands into new areas.

Value acceleration is changing how businesses think about operational efficiency," says Steele. "It's not about trimming the fat—it's about smarter operations that open up growth opportunities. We're helping companies unlock hidden value and reinvest it where it matters most.

This approach is essential for private equity firms' efforts to create value in an increasingly competitive landscape. "We're just scratching the surface," Steele concludes. The potential is enormous, and we're excited to be at the forefront of this movement."

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