Transforming Branch-Based Business Operations

While every industry will feel the effects of the current bumpy, recession-like market, branch-based businesses will be disproportionately negatively impacted.

This series will cover the three steps private equity (PE) funds need to take to transform the operations of the branch-based businesses in their portfolios.

Why Are Branch-Based Businesses Especially at Risk?

Disseminated labor-intensive service businesses often operate with each branch acting as a separate business, do not take advantage of scale and so are inherently high fixed cost. Each high fixed cost branch becomes a significant cost issue during economic slowdowns as volume declines.

Limited standardization of their organizational structures, functions and processes also hinders their ability to adjust cost structures to deal with economic volatility.