Cost, Pricing, and Operational Improvement after closing?
April 09, 2025
by a searcher from IMD in London, UK
I'm coming from a corporate (P&L owner) background in services and manufacturing. Gradually learning about the search fund space and considering to build an AI tool to support searching and improvement activities in my target(s).
I'm wondering how acquirers are actioning cost improvement, pricing, and general operational efficiency improvements (via processes like Time Driven Activity Based Costing). Is this top of mind after closing the deal? Where does this rank in the post-acquizition priority list?
Generally, how is this sort of improvement done today? (ERP plugins, excel, something more clever?)
from Texas State University in Sidney, NE 69162, USA
^redacted Great question—this is absolutely top of mind post-close, but the key differentiator between a good acquisition and a great one is how prepared the business is before the ink dries.
We work on both sides of the table—helping owners prepare for a profitable, regret-free exit and helping buyers (especially searchers and first-time CEOs) hit the ground running post-acquisition.
For sellers, we optimize cost structure, pricing strategy, and operational scalability well before going to market—so the business attracts premium buyers and transitions smoothly.
For buyers—especially those that acquired businesses at a discount because of lack of preparedness—we help:
- Identify immediate and mid-term improvement levers (pricing, process, org structure)
- Hire and/or develop the right operator (when the founder is stepping out)
- Design a 100-day and 12-month plan focused on growth and systematization
We’ve also seen more sophisticated buyers layer in tools like TDABC, but most value creation still comes down to execution—clarity on priorities, team capability, and speed.
Happy to share more if you’re thinking of building tooling in this space—there’s definitely room for innovation, especially for new acquirers.
from Stanford University in North Carolina, USA