OUR SERVICES

04

PE Procurement Advisory

PE Procurement Advisory

Procurement is one of the largest, most overlooked value creation levers in a pharma or life sciences portfolio. Most diligence never reaches it.

Procurement is one of the largest, least visible levers in a pharma or life sciences cost base. Traditional financial and legal due diligence validates the balance sheet - it rarely reaches the supply chain, which is exactly where the information asymmetry, and the opportunity, sits. It's also one of the most consistently under-resourced functions, especially inside lean, fast-moving organisations. In a typical 4–8 point margin improvement plan, optimised procurement is often the lowest risk, highest return lever available - delivering impact months ahead of heavier digital or organisational restructuring.

At Collaborative Sourcing, we bring deep sector expertise - API sourcing, CDMO management, packaging and device supply chains - to help investors and PE-backed businesses turn procurement from a transactional black box into an institutional-grade engine for value creation. Every euro saved, or risk neutralised in the supply chain, directly protects your cash runway, drops to the bottom line, and drives multiple expansion upon exit.

$7.4M

Combined savings delivered in Years 1–2 for a single international pharmaceutical client - using the same methodology we bring to PE-backed engagements.

Why PE-backed businesses have even more to gain

Procurement is consistently underscoped in private equity - and the cost of that gap compounds throughout the investment lifecycle.

01

EBITDA is the direct lever

A saving that's a nice-to-have for a privately owned business becomes a multiple-amplified increase in enterprise value for a PE-backed one. Every euro left on the table in the supply chain is a euro that doesn't compound at exit.

02

Hold periods are time-boxed

There's urgency to capture value inside a defined window. Building a procurement function from scratch during the hold period is slow, expensive, and risky. A proven playbook, deployed fast, changes the maths entirely.

03

Leverage creates cash flow pressure

Where there's debt service to meet, working capital and cost efficiency matter more urgently. Procurement improvements - across payment terms, stock optimisation, and contract renegotiation - release cash quickly and with low execution risk.

04

Lean post-buyout structures lack procurement expertise

Most PE-backed pharma and life sciences businesses don't have a senior procurement function in-house. That capability gap is precisely what our methodology is built to fill - quickly, without adding permanent headcount overhead.

What we've already proven

$7.4M

Combined savings delivered in Years 1–2 for a single pharmaceutical manufacturer

95%+

OTIF achieved by Year 2 - up from 51.7% at the start of engagement

$1.6M

Cash released from safety stock optimisation across a single API portfolio

The Value Creation Framework

We align our interventions directly with your investment lifecycle, eliminating information asymmetry pre-deal and executing rapid operational setup post-close across the full deal lifecycle, from pre-deal diligence to exit.

01

Pre-Close & Due Diligence

Spend Cube Analysis and Contract Risk Auditing, mapping validated EBITDA upside and critical supply chain red flags before you price the deal. Deliverable: a clear Opportunity & Risk Report.

02

First 100 Days Post-Close

Contract Harmonization across common suppliers for bolt-on or buy-and-build strategies, and Leakage Control through strict PO compliance - protecting the asset without adding permanent headcount.

03

Growth, Hold & Exit Preparation

Ongoing SRM and Spend Aggregation - pooling purchasing power across your portfolio or multiple operating sites - plus the institutional-grade documentation that proves the asset is built to scale profitably for the next buyer.

Tailored to Your Investment Strategy

PE firms and PE-backed portfolio companies face different procurement challenges. We work across both sides of the investment relationship.

For Investors

PE Firms & M&A Advisors

Pre-deal diagnostics that validate synergy assumptions and surface supply chain risk before close. We give deal teams the procurement intelligence they need to price accurately and plan integration effectively.

For Portfolio Companies

PE-Backed Businesses

Embedded procurement expertise through the hold period - from 100-day quick wins to sustained EBITDA improvement and exit-ready supplier governance. No permanent headcount required.

For Buyouts

Contract Harmonisation & Leakage Control

Instantly aligning supplier terms across bolt-on or buy-and-build strategies, and implementing PO compliance from Day 1 - stopping maverick spend before it becomes a board conversation.

For Exit Prep

Investor Readiness

Institutional-grade cost controls and scalable supply frameworks, documented and proven - giving the next buyer confidence the asset is built to scale profitably.

“Collaborative Sourcing have become strategic thought-partners for my team. They bring a depth of industry knowledge but most importantly take the time to understand our business needs, resulting in tailored solutions and workshops that directly impact how we do business with suppliers.”

Vice President of Sourcing - Pharmaceutical Sourcing Services Company

Flexible Engagement Models

Deal timelines are dynamic and post-buyout budgets must remain lean. Our engagement models are structured to match transaction speed and asset maturity.

Engagement Model
Best For
Commercial Structure
Pre-Deal Diagnostic
Rapid procurement due diligence during exclusivity, scoping risk, validating synergy assumptions, and delivering a clear Opportunity & Risk Report.
Fixed fee per target asset
Operational Surge & Setup
Embedded procurement leadership through the 100-day integration, from spend baseline to supplier governance setup.
Flexible day rate
Portfolio Synergy Programme
Cross-portfolio spend aggregation and ongoing supplier relationship management, delivering sustained EBITDA improvement across multiple assets.
Custom scoped milestones

Let's talk about what deep-sector expertise, a proven playbook and a fresh perspective could unlock for your portfolio.

Whether you're pre-close or mid-hold, we can show you exactly where the opportunity sits - backed by results already delivered in pharma and life sciences supply chains.

Get in touch →

Case Study 1

Facing a million-dollar profit hit? How Collaborative Sourcing delivered a multi-million dollar turnaround.

Case Study 2

How Collaborative SRM Liberated $1.6M in Working Capital for a Mid-Sized Pharma Leader

CLIENT TESTIMONIAL

“Collaborative Sourcing have become strategic ​thought-partners for my team. They ​bring a depth of industry knowledge but most ​importantly take the time to understand our business needs, resulting in ​tailored solutions and workshops that directly ​will impact how we do business with suppliers.”