All the easy levers have been pulled – purchasing cost reduction, a new strategy – so what’s next? Private equity sponsors are increasingly looking at organisational effectiveness and behaviour as the new frontier for value creation. But changing behaviour is difficult, and takes time.
This quarter’s In Focus features a recently published case study from RealDeals magazine on how a mid-market buy-out increased enterprise value 3x by shifting culture over the course of two PE transactions, an IPO and public-to-private deal.
Achieving profitable growth requires a different culture, behaviours and management practices than cost-cutting. But what are the exact differences and how can leaders shift their organisations fast enough? Uster’s story tells how the firm switched from cost reduction to value growth by changing behaviour and leadership practices.
The private equity landscape continues to evolve, influenced by macroeconomic shifts and emerging trends. The ecosystem is becoming increasingly polarized, with firms gravitating towards either…
Read moreWhy is it that most mergers, reorganizations, and downsizings fail to generate their anticipated full value? The main reason is that a lack of effective…
Read moreAs the traditional levers of value creation get price-in, getting a competitive edge in private equity lies in unlocking hidden potential within portfolio companies through…
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