Case Study:
Copley Equity Partners
“Very quickly, AIQ was able to uncover significant opportunities for expense reduction for two of our portfolio companies. AIQ ran its reverse auctions and negotiated dramatically lower enterprise technology costs.” – Greg Sonzogni, Operating Partner at Copley Equity Partners
Challenge
Copley Equity Partners faced the challenge of reducing expenses and increasing profit margins for its portfolio companies while maintaining quality and compliance. They needed a solution that could deliver immediate cost savings and support long-term growth initiatives.
Tourmaline Partners, a trading solutions firm, and LJB, a civil and structural engineering services provider, were two such companies in Copley’s portfolio. Both companies had significant technology expenses that needed optimization to free up capital for growth.
Results
AIQ’s procurement auctions proved to be a powerful tool for cost reduction. For Tourmaline Partners, AIQ hosted a procurement auction that reduced cloud infrastructure expenses by 50%, enabling the company to hire additional salespeople and potentially increase its valuation by eight figures.
LJB saw a 20% reduction in annual computer hardware expenses, which allowed them to support their inorganic growth strategy without relying on higher interest-rate debt.
AIQ’s process involved analyzing high-level data, prescreening vendors, running auctions, and presenting ready-to-execute contracts, minimizing the workload for LJB’s team.
CONCLUSION
Private equity firms like Copley Equity Partners are increasingly leveraging procurement-as-a-service solutions to boost valuations and growth.
AIQ’s expertise in highly technical procurement auctions and cost optimization helps companies reduce spend, maximize efficiency, and fund growth strategies.
This approach is crucial for private equity firms aiming to increase enterprise value and attract buyers.