Private Equity
& Family Office
Investments can only be steered if their figures are reliable – and the processes behind them are understood. Classic financial due diligence examines the figures. It says little about how mature processes, systems and organisation really are.
This is exactly where our K² Readiness methodology comes in: as a structured assessment before the investment and as a management tool afterwards.
Typical challenges
Blind spot in due diligence
Process, system and organisational maturity is rarely assessed in a structured way. Risks that only become visible after closing often concern exactly this level.
Instability in the first months after acquisition
Closings are delayed, liquidity forecasts deviate, key people leave the company. The investment ties up attention instead of delivering.
Inconsistent structures across the portfolio
Different charts of accounts, reporting standards and system landscapes make comparisons between portfolio companies difficult and consolidated statements laborious.
Dependence on local management
Figures come from the company itself and can only be checked for plausibility or cross-checked to a limited extent. A lack of traceability down to account level limits the ability to steer.
Carve-outs without standalone capability
Carved-out units often lack their own accounting, costing and closing capability. Building these is under time pressure and rarely fully planned.
Value creation without a roadmap
Potential is known but not prioritised, scheduled and assigned to owners. Measures run in parallel without their impact becoming measurable.
How we help
Before the investment: Readiness Review to complement due diligence
We assess in a structured way how mature accounting, costing, processes and systems really are: account logic and account quality, posting logic, closing capability, end-to-end processes and level of digitalisation. For the buy side, this provides a reliable risk assessment and a realistic picture of integration and investment needs. For the sell side, it creates transparency that supports the purchase price and avoids discounts.
After closing: stabilising the portfolio company
We bring the company operationally into a state that produces no surprises: reliable closings, clean posting and account structures, functioning core processes, reliable liquidity and earnings planning. Where there are vacancies in key functions, we step in through Interim Management until they are filled.
Carve-out and standalone set-up
For carved-out units we build what the group previously provided: their own accounting with their own chart of accounts, costing, closing processes, governance and system-side mapping in the ERP system.
Cost and margin transparency as the basis for value creation
In Cost & Value Engineering we base costing and cost-object accounting on operational reality – the actual value flows and processes. Only then does it become visible which products, customers and sites contribute to earnings and where the levers lie.
Uniform management across the portfolio
In Performance Management we harmonise charts of accounts, reporting standards and KPI systems across portfolio companies. The result is comparable statements, reliable forecasts and reporting that works without queries to local management. For buy-and-build strategies, this creates a reusable integration approach for every further acquisition.
Value creation roadmap with clear ownership
We prioritise measures by impact, effort and risk, assign deadlines and owners and support implementation – in the system, in the process and in accounting.
Exit preparation
We bring the figures into a state that stands up to a buyer’s due diligence: traceable derivations down to account level, documented posting logic and document flows, reliable margin transparency and an internal control system.
How we proceed
Step 1
K² Readiness Review
Analysis of finance structures, costing and end-to-end processes. The result is a clear picture of the situation with prioritised measures.
Step 2
Prioritisation
Assessment of measures by impact and feasibility, together with your departments.
Step 3
Implementation
Realisation in system, process and accounting – with support through to measurable impact.
Typical project outcomes
Readiness Review as a due diligence module
Structures, processes and systems assessed systematically
Transparency on process maturity
A reliable assessment instead of the portfolio company’s self-assessment
Stable portfolio company after closing
Reliable closings, liquidity and results without surprises
Uniform portfolio reporting
Comparable KPIs across the portfolio
Cost and margin transparency
Earnings drivers per product, customer and site made visible
Standalone-capable accounting
Able to close and steer independently after a carve-out
Reliable closings
Shorter closing cycles and fewer queries
Prioritised value creation roadmap
Measures ranked by impact, effort and risk

Your contact
Talk to an expert
Thomas Kirsch
Managing Partner
Companies we work with
Assess a holding systematically
The K² Readiness methodology creates clarity on structures, processes and systems –
before entry and in ongoing portfolio steering.
Assess and steer holdings reliably?
Let’s talk about Readiness Reviews as a due-diligence building block.