5 09, 2018

A New Formula for Creating PE Deal Value, Stability

By |2018-12-19T10:03:43+00:00September 5th, 2018|Operating Partners, Private Equity Value Creation|

The private equity formula is simple. PE investors expect their portfolio CEOs to drive positive, measurable changes that led to healthy exit options. In a majority of cases, however, that formula is being turned on its head, with the exits coming from the CEOs themselves (73% of them, to be exact) along with corresponding hits on costs, valuations, and plan goals.

Clearly, the formula needs to change, particularly in an era when mounting deal pressures and lengthening hold periods are creating a kind of perfect storm that could result in even more CEOs heading toward the exits.

How best to change the formula? By creating a targeted, tailored support structure that fully empowers and supports CEOs to lead their enterprises through their transformation plans – a structure that acts like a three-legged stool.

A Three-Legged Stool

Based on our years of experience in the PE arena, we believe today’s portfolio CEO needs targeted, tailored modes of support that, collectively, enable them to drive the kinds of enterprise transformation investors want.

You can think of this new […]

18 10, 2016

Keeping the Main Thing, the Main Thing

By |2018-06-05T10:12:35+00:00October 18th, 2016|Operating Partners|

I learned early on in my career the problems of the “busy fool syndrome.” In my first role, we worked on solving organisation problems, usually as solo analysts and with multiple projects at any point in time. We became professional plate spinners. This makes for a great spectacle but of itself does not add value.

In contrast, in my second career role, we looked at redesigning failing areas of the organisation using dedicated multidisciplinary teams. We designed out issues that would have been considered problems to solve in my first role. This resulted in quicker and deeper change.

The truth runs counter-intuitive for most organisations – the more we attempt to do, the less we deliver. We spread ourselves thinly rather than deeply.

The failure of organisations to decide on the MAIN THING and to keep it the MAIN THING, costs them dear. Attempting too many improvement projects leads to lost time and delayed improvement.

How do organisations progress the MAIN THING?

Firstly, make the tough decision and decide what is the MAIN THING for your organisation. If the organisation has operational problems delivering the […]