Private Equity – Portfolio value creation
“Private equity is not for the faint-hearted; it’s for the bold investors seeking high returns. In the world of private equity, value creation is the ultimate goal.”
Henry Kravis
It is about driving operational improvements, not just financial engineering. Adding value to businesses is the true essence of private equity investing.
Build value proactively—and quickly—from due diligence through the ownership period. We help private equity firms accelerate returns post-acquisition by aligning management and shareholders on value-creation potential, strategic priorities, and path to realization.
As multiples reach unprecedented heights, private equity firms face the challenge of surpassing investor expectations for superior returns. Effectively delivering requires active involvement, assisting portfolio companies in implementing both operational and strategic enhancements that drive sustained revenue and earnings growth.
We stand out in championing a proactive ownership approach, and our impact is evident early on. The statistics speak for themselves: our clients experience a mean return of 3.0 times invested capital on deals where our engagement occurs within the first year of ownership, significantly surpassing the industry average of 1.9 times. Initiating with a robust commencement, we immediately address commercial acceleration, cost, and/or cash initiatives post-close to swiftly yield results. This approach not only mitigates early deal risks but also provides the flexibility to make strategic decisions essential for unlocking the full potential of the investment.
Concurrently, we craft a comprehensive value-creation plan aimed at realizing the portfolio company’s full potential. This plan encompasses pivotal decisions around ambition, target markets, competitive strategies, and the roadmap to execution. Transitioning seamlessly from strategy to implementation, we actively support the execution of focused initiatives or complete transformations. Throughout this process, we establish and maintain clear alignment between portfolio company management and investors, ensuring the assurance, amplification, and acceleration of delivery.
Anticipated Outcomes
Early Insights
Prior to the deal’s closure and during due diligence, we pinpoint and assess key value-creation opportunities aligned with your investment thesis.
Dynamic Commencement
Immediately following the deal closure, we facilitate the pursuit of swift returns by aiding in the implementation of quick wins, often centered around initiatives related to commercial excellence or cost efficiency.
Strategic Triumph
We assist leaders in making pivotal decisions for their business, encompassing ambition, target markets, and competitive strategies, providing a clear roadmap for accelerated value creation.
Tailored Achievements
Building on strategic decisions, we guide comprehensive business transformations or offer targeted support on specific priorities, such as merger integration, supply chain reinvention, and more.