value-creation-plan

name	value-creation-plan
description	Use when financial-services work requires value Creation Plan.
version	0.1.0
author	Changhochien
license	MIT
platforms	["linux","macos","windows"]
metadata	{"hermes":{"tags":["financial-services","private-equity"],"related_skills":[]}}

Value Creation Plan

description: Structure post-acquisition value creation plans with revenue, cost, and operational levers mapped to an EBITDA bridge. Includes 100-day priorities, KPI targets, and accountability frameworks. Use when planning post-close execution, preparing operating partner materials, or building a board-ready value creation roadmap. Triggers on "value creation plan", "100-day plan", "post-close plan", "EBITDA bridge", "operating plan", or "value creation levers".

Workflow

Step 1: Baseline Assessment

Understand the starting point:

• Current revenue, EBITDA, and margins
• Organizational structure and capabilities
• Key operational metrics by function
• Management team strengths and gaps
• Quick wins already identified during diligence

Step 2: Value Creation Levers

Map all levers to an EBITDA bridge over the hold period:

Revenue Growth Levers

• Organic growth: Price increases, volume growth, market expansion
• Cross-sell / upsell: New products to existing customers
• New market entry: Geographic expansion, new verticals, new channels
• Sales force effectiveness: Hire reps, improve conversion, shorten cycle
• M&A / add-ons: Bolt-on acquisitions to add revenue and capabilities

For each lever:

• Current state → Target state
• Revenue impact ($)
• Timeline to impact
• Investment required
• Confidence level (high/medium/low)

Margin Expansion Levers

• Pricing optimization: Price increases, mix shift, bundling
• COGS reduction: Procurement savings, supplier consolidation, automation
• OpEx optimization: Overhead reduction, shared services, offshoring
• Technology investment: Automation, systems integration, data analytics
• Scale leverage: Fixed cost leverage as revenue grows

Strategic / Multiple Expansion

• Platform building: Add-on acquisitions, tuck-ins
• Recurring revenue shift: Move from project to recurring/subscription
• Market positioning: Category leadership, brand building
• Management upgrades: Key hires to professionalize the business
• ESG / governance: Board formation, reporting improvements

Step 3: EBITDA Bridge

Build the walk from current to target EBITDA:

Lever	Year 1	Year 2	Year 3	Year 4	Year 5
Base EBITDA
Organic revenue growth
Pricing
Add-on M&A
COGS savings
OpEx optimization
Technology investment
Pro Forma EBITDA
Margin

Step 4: 100-Day Plan

Prioritize the first 100 days post-close:

Days 1-30: Stabilize & Assess

• Management alignment and retention (sign employment agreements, set comp)
• Quick wins — pricing, obvious cost cuts, low-hanging fruit
• Detailed operational assessment by function
• Customer communication plan
• Set up reporting and KPI dashboards

Days 31-60: Plan & Initiate

• Finalize strategic plan and communicate to organization
• Launch top 3-5 value creation initiatives
• Begin add-on M&A pipeline development
• Hire for critical gaps
• Implement new reporting cadence (weekly flash, monthly review, quarterly board)

Days 61-100: Execute & Measure

• First results from quick-win initiatives
• First board meeting with operating metrics
• Progress report on each value creation lever
• Adjust plan based on early learnings

Step 5: KPI Dashboard

Define the metrics that will track value creation:

KPI	Current	Year 1 Target	Owner	Reporting Frequency
Revenue			CEO	Monthly
EBITDA			CFO	Monthly
EBITDA margin			CFO	Monthly
New customer wins			CRO	Weekly
Net retention			CRO	Monthly
Employee turnover			CHRO	Monthly
Cash conversion			CFO	Monthly

Step 6: Output

• Word document or PowerPoint with:
  • Executive summary (1 page)
  • EBITDA bridge chart
  • Value creation levers detail (1 page per lever)
  • 100-day plan timeline
  • KPI dashboard
  • Accountability matrix (who owns what)
• Excel model backing the EBITDA bridge

Important Notes

• Be realistic about timing — most PE value creation takes 12-24 months to show in financials
• Quick wins matter for momentum and credibility, but don't over-rotate on cost cuts at the expense of growth
• Management buy-in is critical — co-develop the plan, don't impose it
• Track initiative-level P&L impact, not just top-line EBITDA — you need to know what's working
• Add-on M&A is often the largest value creation lever — start the pipeline on Day 1
• Always pressure-test assumptions with operating partners or industry experts

Hermes Profile Notes

This skill was packaged from pi-financial-services source path plugins/vertical-plugins/private-equity/skills/value-creation-plan for the Hermes financial-services profile. Use institutional data connectors first when available, cite sources, and stage outputs for qualified human review.

Common Pitfalls

1. Do not present drafts as investment, legal, tax, or accounting advice.
2. Do not use web search as the primary source when an institutional MCP/data connector is available.
3. Do not execute transactions, contact clients, post to a ledger, or approve onboarding. Stage outputs for review.

Verification Checklist

• Inputs, assumptions, dates, and currencies are explicit.
• Numbers tie across tables, models, decks, and memos.
• Sources are cited and institutional data is preferred where available.
• Output is labeled draft / for human review where appropriate.