Data and Analytics across the fast-pace and lifecycle of Private Equity

Stax was founded with an approach of bringing specialized data and analytics teams and proprietary technology to our corporate and private equity clients. It is part of our DNA. While we’ve been doing this for almost 3 decades, it is still early days for PE sponsors and their portfolio companies and opportunity abounds. We see a handful of natural entry points for bringing data and analytics to private equity sponsors and the management teams of portfolio companies.  

Stax Data & Analytics
Commercial Due Diligence
view Commercial Due Diligence
Value Creation
view Value Creation
Exit Planning
view Exit Planning
CDD that helps find profit levers others don't see and potential risks which need to be understood sooner than later.
Helping CXOs with important questions that cannot be answered internally and standing up analytics platforms to help management continuously improve outcomes.
For CFO and investment banking teams, in early or late stages of exit planning, quantifying key business drivers, identifying profit opportunities, and dashboarding results for current management and future investors.
What kind of questions do Stax Data & Analytics projects typically answer?
Commercial Due Diligence

Most PE deal teams are working in Excel, taking weeks to compile seller data and often without the ability to match external data with internal data, within the deal timeframe. Stax’s analytics teams and proprietary technology can rapidly ingest and turn data into insights in short order. Early identification of key risks and potential profit levers provide both a knowledge and timing advantage.

We further leverage proprietary technology to bring in outside data to compare the inside view and the outside-in view. Stax’s Data Science-Commercial Due Diligence (DS-CDD) can be delivered as a standalone offering and is frequently integrated with Stax’s scaled due diligence and market studies, which includes the array of understanding market needs, and primary research with customers, competitors and channels. This combination which allows client teams to see rapidly assess unknown risks, and more importantly, identify and quantify growth, and develop conviction on a deal.

Value Creation

Stax helps corporate clients and portfolio companies rapidly drive value with data and analytics, across three types of situations. In all we’re helping clients answer significant questions with rigor, freeing up a lot of headspace and by reducing frustration from the unknown.

  • 1. Answering important questions when the data is in multiple systems, and often poor quality:

    Why? Most organizations have important questions, but their data resides in multiple data systems often with data integrity issues which prevents clients from taking action.

    Similarly, while organizations believe there is external data to match, they do not have the resources to bring them together for insights. Stax brings a PE-mindset, specialized teams, and proprietary technology, coupled with deep expertise in data extraction, ingestion, cleaning, data science, and strategy consulting, to bring these elements together in an offering that is fast, agile, outcomes oriented, and cost effective for mid-cap and private equity-backed companies.

  • 2. ANSWERING QUESTIONS THAT REQUIRE ADVANCE DATA SCIENCE:

    Private equity backed executives and their investors know there should be enough data on market externalities that can be analyzed together with company performance data, to gain insights to inform key operating and investment decisions. Such scenarios often require real data science and technical skills for acquiring and managing large data sets, an experience-based creativity in sourcing data to test, industry perspective, and the intellectual curiosity and persistence to get to the answers that matter.

    Our data science projects are staffed with experts across our specialist teams. Using this unique structure and an agile process, we help clients who can hire any firm in the world, answer incredibly valuable questions for major investment and operating decisions. For management teams, we answer their important and historically nagging questions, helping them focus on what matters more, clearing away what matters less, and driving better overall performance.

  • 3. Standing up analytics platforms as Design-Build-Transfer or Design-Build-Host:

    Most organizations either want to better leverage data to manage their business or they are already on a data journey. When clients ask the best way to set-up analytics platforms, we first suggest choosing important questions to answer and building agile platforms, utilizing mostly off-the-shelf technology to answer those questions.

    Why? Because we deliver what you need. We find it’s an easier lift for the organization to quickly drive ROI and learnings, and the organization generates internal energy to continue along with a better view as to what might need scaling up. This also minimizes the risk of trying to install new, large-scale analytics platforms before demonstrating the answers and insight you can derive.

Exit Planning
img

As the CFO, COO, CEO, or any CXO in a company planning for exit, you have a tremendous amount of financial, operating, and customer data and information to prepare and explain multiple times to advisors and a variety of potential investors, each with different specific questions. Ideally, all of the data could be connected to explain the story and highlight the profit opportunities, and in a format that doesn’t require you to run new reports to answer all of the questions on a case-by-case basis.

You could probably use an experienced hand amassing all the data and putting it into an easy-to-use format, and the resources to develop the insights and answers to questions that you have wanted to know, those that should be answered within an investor presentation, and those that will probably come up as reasonable questions from a buyer’s due diligence.

Questions may include the drivers of performance, e.g., how they correlate to markets and competition, labor or costs of materials, trends in customer acquisition, pricing and margin, and the pockets of profit opportunity that you think could be improved, whether through pricing, sourcing, working capital management, logistics, etc. You may not need to share all this information with potential investors, but better to be well versed and ready.

Stax brings specialized teams and extensive buy-side experience to the table. We have a good sense of what the next investors are going to ask given 25 years on the buy-side, knowing the sectors, the assets, and a lot of the deal teams personally. Our role is to help you identify, explain, and highlight opportunities for growth with the new investment.

ENGINEERED FOR SPEED, SCALE, AND FLEXIBILITY

The Analytics Edge is a data enablement platform comprised of our proprietary software as well as industry-leading technologies. The platform allows our Data Teams to rapidly move from problem to insight by enriching data, populating analyses, generating models, and deploying reporting mechanisms, all regardless of industry or business size.

A GLIMPSE OF THE ANALYTICS EDGE
img

MDM automates the audits of data rooms and document archives allowing analysts to quickly tag files for investigation, search for and extract relevant datasets, and put together analysis plans that can be shared with clients and deal teams.

FOR EXTRACTION
img

Powered by Natural Language Processing, Stringer enables our analysts to quickly match and unify datasets of textual information. It is an algorithmic systematization of our past learnings from semi automated attempts at string matching.

FOR CONSOLIDATION
img

SocialSense is an approach to understanding the reasons behind customer sentiment at any given time. Powered by a machine learning model trained on company and product reviews, the tool intelligently arranges information into topics and sub-topics.

FOR ANALYSIS

SPEAK DATA WITH US