4 Ways to Unlock, Amplify, and Accelerate Private Equity Value Creation

If you lost time during the pandemic, here’s how to catch up and achieve your value creation targets.

Even though the global pandemic completely transformed market conditions for many portfolio companies, private equity firms still want or need to exit on time with maximum return.

Private equity firms are making up ground by accelerating the process of choosing and implementing the best value creation opportunities for current market conditions. When selecting projects, it is important to keep an open mind and be willing to consider less obvious opportunities that often generate significant returns in short order—but with a little extra effort.

Four critical steps for the private equity firm and the portfolio company’s leadership team:

1. Reprioritise projects using timeframe as a metric. 
2. Make high-impact/highly-challenging projects more doable. 
3. Reduce costs or functionally improve product manufacturing processes. 
4. Accelerate project execution. 

In this article, Ashwin Badve, Gary Hoover, and Jeff Klapp share how one PE firm and a rapidly growing portfolio company deployed these four critical steps to unlock more than $13 million in value creation opportunity that was realisable within their 10-month horizon. Dig into the article for additional perspective and detail on how to maximise return within the time remaining in your holding period.

Download the article, How to Play Value Creation Catch Up, to unlock insight into the most effective methods for expediting value creation.