Four Private Equity Value Creation Strategies

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

Even though the global COVID-19 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 strategies for the private equity firm and the portfolio company’s leadership team:

1. Reprioritize 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 strategies to unlock more than $13 million in value creation opportunity that was realizable within their 10-month horizon. Dig into the article for additional perspective and detail on how to maximize return within the time remaining in your holding period.

Complete the form below to download, “How to Play Value Creation Catch Up: Dig Deeper to Unlock, Amplify, an Accelerate the Opportunity” to accelerate execution to achieve the value you want in the time frame you need.