Private equity's get-rich-quick days 'are over'
The Daily Telegraph 11/18/2009
by Helia Ebrahimi
Bain & Company published a report claiming that up to 40pc of private equity funds are at risk and "unlikely to survive". The analysis says funds that do not have much cash left and are struggling to generate positive returns face failure. Graham Elton, European head of private equity at Bain & Company, said that although the top 25pc of buy-out houses returned over 30pc in cash - easily outperforming the equities market - there was a much wider spread of returns throughout the industry than people realised. He said banks were likely to get tougher with private equity in the future.
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Wal-Mart looks to bolster suppliers
The Wall Street Journal 11/14/2009
by Vanessa O'Connell
A few retailers have begun experimenting with supply chain finance programs as alternatives to traditional factoring. Wal-Mart informed its suppliers of its new "Supplier Alliance Program," in which eligible suppliers can get payment for their orders in 10 to 15 days within its receipt of goods, compared with the more typical 60 to 90 days. Suppliers might be more inclined to give certain retailers "preferential treatment" because of such programs, said Pratap Mukharji, a partner with consultant Bain & Company. It's possible the arrangement could influence "how a supplier would look at a Wal-Mart, especially if, in a difficult economy, this program lets a supplier stay in business or make more money," Mr. Mukharji added.
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Universities turn to consultants to trim budgets
The New York Times 11/14/2009
by Tamar Lewin
When Holden Thorp, the chancellor of the University of North Carolina, was looking for ways to cut the university's budget, he did what many executives in private industry do -- hired a management consultant. The consultant, Bain & Company, came up with recommendations that it said could save the university more than $150 million a year. They included centralizing some of the university's widely dispersed procurement operations (up to $45 million) and information technology functions (up to $19 million) and simplifying its organizational structure (up to $12 million). And since Mr. Thorp hired Bain, both Cornell University and the University of California, Berkeley, have followed suit. In each case, the management consultants examined business functions but stayed away from academic issues like courseloads and tenure.

U.S. could position itself better for exports
The Dairy Herd 11/11/2009
by Tom Quaife
A drop-off in exports is one of the reasons why milk prices tanked this year. And, it has some asking what the U.S. can do to better position itself in the future so these type of drop-offs don't happen again - or at least with less severity. Clinton Anderson, of Bain & Company, which is partnering with the Innovation Center for U.S. Dairy, to study this issue, says globalization is here to stay and will affect the dairy industry even more profoundly in the years ahead.  That will bring both risks and opportunities.
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Use of sales agencies can reduce selling costs for CPG companies by more than 20 percent, according to Grocery Manufacturers Association - ASMC Foundation- Bain & Company study
Grocery Manufacturers Association news release 11/10/2009
Nearly two-thirds of consumer packaged goods (CPG) manufacturers that shifted retail sales activities from internal teams to sales and marketing agencies (SMAs) reported a positive impact on selling costs after switching, according to Maximizing the Impact of Outsourcing: How CPGs Can Best Use Sales and Marketing Agencies in a Changing Environment. This study provides an analysis of performance results of CPG companies before and after outsourcing to SMAsprovides an analysis of performance results of CPG companies before and after outsourcing to SMAs. It was commissioned jointly by the Grocery Manufacturers Association (GMA) Sales Agency Committee and the Association of Sales and Marketing Companies (ASMC) Foundation and conducted by Bain & Company.
Go to Grocery Manufacturers Association news release