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Revenue Growth is 54% of Exit Value. Is Yours Exit-Ready?
Revenue Growth is 54% of Exit Value. Is Yours Exit-Ready?
Part 2 of our exit readiness series. If you missed Part 1, start here: The Exit Readiness Gap: What PE Buyers See That You Don't.
According to Gain's The Private Equity Value Creation Report: 2025, revenue growth is the largest driver of PE value creation, contributing on average 54% of the total. Margin expansion accounts for 14%. Multiple expansion adds another 32%, but here's what that number obscures: multiple expansion is itself largely driven by revenue growth. Fast-growing companies typically command 30 to 50% higher exit multiples than slower-growing peers. Growth doesn't just add value directly. It amplifies every other value driver in the equation.
Beyond the ABCs of Customer Due Diligence
Dec 14, 2018, 10:50:29 AM — GPs can win invaluable insights into a potential acquisition by conducting high level interviews with customers that dive deeper than any standard issue survey ever will. Here’s how GPs can learn much more from talking to a target’s customers. While GPs devote real time and rigor into performing due diligence into a possible acquisition, they sometimes will give short shrift to a constituency that’s key to the growth and the eventual success of the investment: the customer.