Three Major PE Use Cases for Intelligent Forecasting
Predictive Intelligence Helps to Quantify PE Opportunity
Prevedere supports 3 primary use cases for predictive analytics and Intelligent Forecasting in the private equity industry. The use cases follow a logical sequence, from researching market and deal opportunities, to executing due diligence on prospective investments, to enabling portfolio companies with Intelligent Forecasting for strategic planning, risk mitigation and competitive advantage.
Prevedere Empowers Private Equity with 3 Use Cases
Use Case #1: Market Exploration – Deal Sourcing
Private equity firms are constantly and proactively seeking new investments. Prevedere is able to provide unique intelligence to support this process, in the form of what is essentially an economic crystal ball, whether for a market segment or an individual company. Prevedere helps PE firms identify the leading business drivers and lead/lag indicators for a target market segment, as well as demand projections up to 5 years in the future.
Use Case #2: Due Diligence
Prevedere is able to provide a variety of intelligence for a prospective investment: ↣ Identify leading business drivers and correlated economic indicators of its performance. ↣ Create demand models 1-18 months, 1-5 years into future (via Prevedere’s predictive modeling engine, ERIN). ↣ Create forecasts for targeted KPIs, whether raw sales, year over year growth, market share. ↣ Show how macroeconomic relationships and trends impact target organization future performance
Use Case #3: Advantage for Portfolio Companies
Prevedere enables PE firms to monitor the health of its portfolio companies’ markets, so they are able to foresee headwinds/tailwinds and advise accordingly. Intelligent Forecasting can also be leveraged by any and all portfolio companies, regardless of which industry they operate within. CEOS, CFOs, FP&A, S&OP and operational planners can create forecast models and outlooks to mitigate risk and maximize opportunity for their roles and functions.
Key Insights for Private Equity and Portfolio Companies
eBook: Prevedere Quantifies Investment Opportunities for Private Equity
Intelligent Forecasting for Private Equity. This eBook takes a deeper dive into the practice, process and outputs from Intelligent Forecasting.
Case Study: Data-Informed Forecast for Scenario Planning: Multi-Billion Dollar Retailer
This case study is an example of how a portfolio company can leverage Intelligent Forecasting, in this case scenario planning for a large retailer.
Blog: Intelligent Forecasting in Action - Three Use Cases for PE
Intelligent Forecasting helps PE firms and their portfolio companies make better investment and planning decisions by providing customized economic intelligence on their industry, their channels, and the demand for their products.
“Prevedere enables a data-driven strategy that allows for timely and high value insight during unprecedented times. Forecasts are used by leadership, sales, marketing, and supply chain for planning and also for earning calls.” Apollo Portfolio Company