Private Equity Operational Due Diligence + Value Creation

An Overlooked Goldmine: Why More Portcos Should Be Investing In VAVE

By Ashwin Badve, John Lewis

April 26, 2024

Reveal Unexplored Value and Supercharge Portco Growth

Join industry experts Ashwin Badve and John Lewis from TBM Consulting Group as they guide you through the transformative power of Value Analysis/Value Engineering (VAVE). Their article, “An Overlooked Goldmine: Why More Portcos Should Be Investing in VAVE,” offers a deep dive into how this added approach can significantly elevate your company’s operational and financial performance.

What You’ll Learn:

  • Enhanced Profitability: Understand how VAVE turns cost drivers into profitability catalysts, drastically reducing production costs and boosting margins above and beyond traditional operational improvement results.
  • Real-World Success Stories: Gain insights from compelling case studies, including a custom fire truck manufacturer and a leading RV parts supplier, that demonstrate the tangible benefits of implementing VAVE.
  • Strategic Insights: Discover the crucial roles of comprehensive buy-in from senior management and robust inter-departmental communication in successful VAVE adoption.

Take the First Step Towards Uncovering Your Company’s Hidden Potential

Our article not only explores the technical aspects of VAVE but also provides actionable strategies for companies committed to sustainable, long-term growth. Learn why VAVE is not just another expense but a wise investment that can lead to substantial value creation.

Complete the form to download the article.

TBM Consulting Group

Frequently Asked Questions

Why should portfolio companies invest in Value Analysis / Value Engineering (VAVE)?
Portfolio companies should invest in Value Analysis / Value Engineering because VAVE uncovers significant, often overlooked opportunities to improve profitability beyond traditional cost‑reduction efforts. By systematically examining products and processes to eliminate unnecessary cost while preserving or enhancing function, VAVE turns cost drivers into profitability catalysts that improve margins and accelerate value creation.
How does VAVE support faster and more sustainable value creation?
VAVE supports sustainable value creation by embedding cross‑functional problem‑solving focused on design, materials, manufacturing methods, and functionality rather than short‑term cost cutting. When supported by senior leadership and strong collaboration across engineering, operations, and procurement, VAVE initiatives deliver recurring savings and performance improvements that compound over time.
What makes VAVE especially valuable for private‑equity‑backed portfolio companies?
VAVE is particularly valuable for private‑equity‑backed companies because it creates outsized returns without relying on market growth, price increases, or major capital investment. By improving cost structure and product value simultaneously, VAVE strengthens EBITDA, enhances competitive positioning, and delivers measurable gains within typical holding periods, making it a powerful lever for achieving value creation targets faster.

Meet the Experts

Ashwin Badve

Ashwin Badve

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John Lewis

John Lewis

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