Operational Excellence in Private Equity: The Value Creation Lever You Can’t Afford to Ignore
Operational excellence in private equity drives EBITDA gains, faster integration, & stronger exits. Get the framework PE firms can’t ignore.
Operational excellence in private equity drives EBITDA gains, faster integration, & stronger exits. Get the framework PE firms can’t ignore.
In private equity consulting, value creation has a clock on it. You don’t have ten years to build operational maturity. You’ve got maybe three. And in that window, you need to scale, stabilize, and often restructure, without losing control. That’s why operational excellence isn’t just a nice-to-have. It’s a requirement. And it has to start…
As the owner of a successful manufacturing company, John had poured his heart and soul into building the business over the past two decades. Now, with retirement on the horizon, he faced the daunting task of selling the company he had nurtured from the ground up. John knew that first impressions were everything when it…
In Part 1 of this two-part series, we examined just how important it is to every level of your business to ensure your operational due diligence is done as quickly and efficiently as possible. But the question remains: How do you speed up the operational due diligence process and reap the benefits of informed decision-making,…
It’s a common yet unfortunate situation: private equity investors spot a promising manufacturing business for acquisition. Initially, the numbers look good, and growth prospects seem feasible. Ideally, they would have enough time for thorough research. But reality isn’t perfect. So, they take a leap of faith and go ahead with the acquisition, hoping for good…
Imagine this scenario: your private equity firm identifies a promising acquisition target. The company appears well-run, with a stellar reputation and potential for operational improvement. Eager to seize the opportunity, your firm moves forward without in-depth operational due diligence. However, once the deal is sealed, unforeseen challenges emerge — working capital issues, quality challenges, operational…
In 2004 I was consulting for a business who had acquired a company. Things were not going well. Production was abysmal. The culture was in ruins. No one from the acquired company seemed to have anything good to say about the parent company. I knew from day one that I had my work cut out…
When you’re thinking about buying a company, it’s important to look at more than just the financials. You also need to assess the company’s operational health. What’s amazing is that two of the best metrics for gaining a valuable amount of information on the operations side of things–namely, inventory levels and workforce engagement–can be gathered…
The Power of a Quality of Operations Proposal in Maximizing Bid Price for Private Equity Firms When private equity firms sell a company, they usually do a financial analysis called a Quality of Earnings (Q of E) proposal. This verifies the legitimacy of earnings and adjusts for any one-time expenses that might distort future profitability….
Thinking about selling your company or if you want to explore how simple it can be? Preparing an operational improvement plan is key. Competitive Business Solutions can help you prepare to sell.
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