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Value Creation with Repeatable Commercial Systems
The New PE Value Creation Playbook: Part Two
Value Creation with Repeatable Commercial Systems
In our last post, we made the case that PE firms are increasingly turning to commercial growth as the primary value creation lever during the hold period. The question now is whether the growth activity underway in portfolio companies is actually building toward something durable.
Most portfolio companies are not standing still.
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.
2017 Reflections: Private Equity Firms Increasingly Leverage Fractional CMOs for Rapid Growth
Mar 1, 2018 11:00:00 AM — In 2017, a record-breaking $621 billion was raised for private equity funds — and in 2018, PE firms are expected to receive approximately $750 billion in allocations from existing and new investors. As PE capital steadily increases, SME merger and acquisition activity is forecasted to follow suit; experts estimate that deal making will hit $1.6 trillion in 2018 — $200 billion higher than 2017.
Not All EBITDA Is Created Equal
Dec 11, 2017 1:26:53 PM — During a recent private equity forum in New York City, operational partners came together and discussed industry concerns at length, including a particularly pressing hot topic. PE fund competition is fierce — and that's skewing the way EBITDA affects returns and heavily influencing what it takes to come out ahead at an investment's exit point.
How Can Operating Partners Work with Management Teams to Drive Growth?
Oct 12, 2017 4:13:46 PM — Ever had a portfolio company that ate up every bit of advice you had on how they could run better, but could not seem to grow? We at Chief Outsiders see this all the time. Often the best run companies have the hardest time growing. It’s a classic challenge, especially in the B2B world where engineers who run companies fall in love with the thing they make or the service the deliver… or simply with the technology they love.