Value Creation in Private Equity

Value Creation

  • Strengthen distribution channels
  • Personalize experiences and foster exceptional customer service to reduce churn
  • Hire top talent that is committed to the business’s growth while promoting positive company culture that encourage learning and development
  • Embrace technology-enabled solutions that enable data-driven decisions throughout the company’s value chain
  • increasing prices
  • selling higher quantity
  • reducing cost of goods sold
  • increase the topline (revenue)
  • decrease cost of goods sold
  • decrease salaries, general, and administrative costs
  • decrease research and development costs
  • Established track record
  • Existing contacts
  • Strong chemistry and trust
  • Investment-criteria fit
  • Change in EBITDA — have EBITDA margins increased?
  • Change in Net Debt — was enough free cash flow generated to pay down debt from investment and other sources of funding?
  • Change in EBITDA Multiple — is there indication of firm-wide rapid growth as well as the industry it is in?

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Summer Analyst at J.P. Morgan

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Shubhang Jani

Shubhang Jani

Summer Analyst at J.P. Morgan

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