When Private Equity Drives Transformation
When private equity firm Menta Capital invested in two complementary businesses in the outdoor cooking industry, they weren’t just acquiring assets – they were setting the stage for a comprehensive business transformation. The directive was clear: integrate operations, elevate processes, and build a scalable foundation for future growth.
“I was brought in three years ago through Menta Capital to guide the fusion between these two companies,” explains Pascal van Vugt, who led the transformation at what would become Fyron Group – Europe’s leading manufacturer of premium BBQ brands like OFYR, The Bastard, and Grill Guru.
This scenario plays out regularly in the private equity world. After acquisition, portfolio companies face pressure to rapidly professionalize operations, standardize processes, and implement systems that can support ambitious growth targets – all while maintaining business continuity.
Beyond Implementation: A Strategic Transformation
For van Vugt, the journey was never primarily about technology. “The investor needed to facilitate future growth,” he explains. “That meant elevating business processes and making them future-proof, while also becoming more data-driven in our operations.”
This strategic approach manifested in a carefully structured three-year transformation:
Phase 1: Strategic Foundation (Year 1)
- Developing a unified company strategy
- Creating the target operating model
- Designing the organizational structure
- Planning the IT architecture blueprint
Phase 2: Execution (Year 2)
- Harmonizing business processes
- Implementing the selected ERP system
- Testing integrated solutions
- Preparing for go-live
Phase 3: Embedding & Optimization (Year 3)
- Going live with integrated systems
- Ensuring adoption across the organization
- Optimizing processes based on real-world experience
- Building self-sufficiency within the team
“It’s been a three-year journey to reach the level where we are now,” van Vugt reflects. “Each phase was critical to ensure long-term success, not just a quick technical implementation.”
Selecting the Right Technology Stack
The technology selection process began with a structured RFP (Request for Proposal) sent to multiple ERP providers. The requirements were exacting: the solution needed to support multiple legal entities, facilitate warehouse management across different locations, and enable assembly operations – all while providing robust data extraction capabilities.
“We asked each software provider to recommend implementation partners experienced with our type of business,” van Vugt explains. “We wanted partners with expertise in trade, production, and warehousing – all essential elements of our business model.”
After comprehensive evaluation, Fyron Group selected Oracle NetSuite with Rsult as the implementation partner. The complete technology stack ultimately included:
- Oracle NetSuite: Core ERP functionality
- Celigo: Integration platform connecting various systems
- Transmart: Transport management
- Blue10: Invoice workflow and control
- Shopify: E-commerce and point-of-sale systems
- NetSuite WMS: Warehouse management across multiple locations
The Private Equity Timeline Challenge
One of the unique challenges in PE-backed transformations is balancing thoroughness with speed. Investors typically work on a 5-7 year exit horizon, creating pressure to implement changes quickly to maximize the improvement runway.
“Availability of consultants was actually a deciding factor,” van Vugt notes. “One potential partner was eliminated because they couldn’t start the implementation quickly enough after our decision process. Rsult was able to immediately assemble a team to begin the implementation.”
Despite these timeline pressures, van Vugt maintained a disciplined approach:
“We invested six months in comprehensive testing. Our key users wrote test scenarios, and we conducted multiple rounds of data migration testing and integration testing. This thoroughness was essential to reduce risk during go-live.”
Building the Foundation for Data-Driven Management
A critical element of the transformation was shifting from intuition-based decisions to data-driven management – a common focus area for PE-backed companies seeking to professionalize operations.
“For the first time, I can see exactly how many shipments we’re sending, their weights, which carriers are handling them – information that was previously unavailable,” van Vugt explains. “This allows us to have fact-based conversations with our logistics partners about their performance.”
The transformation extended to production planning as well. “Previously, our assembly operations involved walking through the warehouse to decide what to produce next. Now we use MRP to plan work orders and ensure components arrive on time, dramatically improving our efficiency.”
These capabilities create the operational transparency PE firms seek:
- Enhanced forecasting: Better anticipating customer demand
- Improved inventory management: Optimizing working capital
- Streamlined multi-site operations: Consistent processes across locations
- Accelerated financial processes: Faster month-end closing
- Data-backed decision making: Replacing gut feelings with facts
The Human Element of Transformation
While the technical implementation was critical, van Vugt emphasizes that cultural change was equally important. The transformation brought together teams that had previously operated independently, requiring significant change management.
“We now have one purchasing department instead of separate teams in Roosendaal and Haarlem,” he explains. “Staff can cover for each other, share knowledge, and work consistently across all brands and locations.”
This integration extended to customer-facing operations as well. “Our customers now place a single order covering all our brands, receive one delivery, and get one invoice. It’s simpler for them and more efficient for us.”
Building Self-Sufficiency: The Path to Sustainable Value
A key element of creating lasting value in PE-backed transformations is developing internal capabilities rather than creating ongoing dependencies on external consultants.
“Self-reliance was a term used frequently throughout the project,” van Vugt explains. “We focused on making our key users comfortable with the system and able to solve problems independently.”
This strategy has paid dividends: “Over the past year and a half, we’ve grown tremendously in our ability to manage the system ourselves. We’ve built enough internal knowledge that we now only need external support for major changes, which significantly reduces our ongoing costs.”
Realizing the Investment: Measurable Outcomes
The true test of a PE-backed transformation is whether it delivers measurable improvements that support the investment thesis. For Fyron Group, the outcomes have been substantial:
- Integrated operations: Successfully unified two companies into a single entity with standardized processes
- Enhanced customer experience: Simplified ordering, shipping, and invoicing across all brands
- Improved planning: Better visibility into inventory and production requirements
- Data-driven decision making: Fact-based management replacing intuition
- Operational scalability: Systems capable of supporting continued growth
“We’ve made a significant professionalization step,” concludes van Vugt. “We now have the foundation to better serve our customers in the future, with data-driven decision making replacing gut feeling, and unified teams working consistently across locations and brands.”
Lessons for PE-Backed Transformations
For other PE-backed companies embarking on similar journeys, van Vugt offers several key insights:
1. Balance Speed and Thoroughness
While there’s pressure to move quickly, cutting corners on process design or testing ultimately delays realization of benefits. Invest sufficient time in planning and testing to ensure successful implementation.
2. Manage Scope Carefully
“Project management discipline is essential,” van Vugt emphasizes. “You need clear agreements about scope and budget, with regular monitoring of progress against these parameters.”
3. Develop Internal Capabilities
Building internal expertise reduces long-term dependency on consultants and creates sustainable value. “Invest in your key users and give them ownership of the transformation,” advises van Vugt.
4. Focus on Process Before Technology
“This isn’t an IT project,” van Vugt reiterates. “It’s a business transformation enabled by technology. Start with strategy, operating model, and process design before selecting systems.”
5. Plan for the First Real-World Test
For seasonal businesses, the first peak period after implementation is the ultimate test. “We had some issues during our first season,” van Vugt acknowledges. “But we quickly implemented improvements. Now we have a solid foundation for future success.”
By following these principles, PE-backed companies can successfully navigate the transformation journey, creating operational excellence that delivers sustainable value – both during the investment period and beyond.
