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From Plateau to Acceleration: A PE Playbook for Unlocking Predictable Financial Growth
In a recent episode of Dream and Soar with Chuck and Friends, Chuck sat down with Craig Levinsohn, Chief Strategy & Revenue Officer at Chief Outsiders, to unpack one of the most pressing questions in private equity today:
“How can portfolio companies achieve their next phase of growth—and do it predictably, consistently, at scale, and profitably?”
Operating Partners: Creating Value and Driving Organic Growth
Oct 30, 2018 1:56:28 PM — Operating Partners have a tough job! Many firms are still trying to figure out their Operating Partner strategy They don’t always have input into the deal parameters yet are called-upon to see that the Value Creation Plan fulfill the investment thesis They don’t always have a full seat at the table with the deal partners and may not reap the same type of rewards They are often in the position of working with management teams who are skeptical of their input and not always quick to accept help They are often spread thin across multiple portfolio companies with limited resources These dynamics were on full display at two events I attended recently – The PEI Operating Partners Forum and ACG’s M&A East. While Operating Partners were in abundance at the first event, the second was dominated by deal professionals and board advisors. Surprisingly, much of the messaging was very similar.
PEI 2018 Operating Partners Forum Recap: Growth Guidance Role Becoming More Strategic
Oct 30, 2018 1:28:01 PM — The two key messages from the PEI Operating Partner forum came through loud and clear this year: Every PE firm needs an Operating Partner strategy. The structures vary, but LPs now insist that someone is covering the role. As the Operating Partner role has become more strategic for PE firms, the focus of the role has matured from cost cutting to sales effectiveness and now onto supporting and driving commercialization and Big M strategic Marketing. I have attended 5 of the last 6 PEI Operating Partner Forums. During that time, I have seen the role of Operating Partner change significantly. When I first started attending, Operating Partners (OPs) were evolving from cost-focused executives in residence to starting to work with Deal Teams on Value Creation Plans. At that time, being involved in fund raising and participating in LP meetings was an aspiration.
Evaluating Board Guidance vs. C-Suite Leadership
Sep 5, 2018 1:41:01 PM — The difference between a marketing executive working inside the business and on the board A standard part of the private equity playbook is to find seasoned executives to fill seats on the boards of their portfolio companies. Increasingly that includes someone with a strong marketing pedigree who can provide advice, guidance and support to both the management team and the board on an ongoing basis. But this approach may not be enough for many mid-market firms, especially in an environment where acquisition prices are on the rise, exit multiples are shrinking, and the pressure mounts from LPs to deliver outsized returns.
It’s Not Just About EBITDA Anymore
Apr 30, 2018 1:02:33 PM — EBITDA is not just one of our favorite acronyms in the Private Equity world, it’s the basis of value. Purchase prices are based on EBITDA and sale prices are based on EBITDA. Operating Partner groups and Resource groups came into existence a few years ago because PE firms recognized that they could add resources and expertise to help their portfolio companies grow EBITDA and earn a better exit.