For a good decade now most PE operating teams have gotten very savvy leveraging technology to enhance the investment thesis. Most started by predictive spend analytics to consolidate suppliers, improve contract performance and in general better understand drivers of drain on EBITDA. Depending on the scope of the operating team, many got deeper into the […]
We recently completed some analysis of enterprise software purchasing trends in mid-market and large enterprise businesses. We looked at industry data from the last 7 years and came to a few interesting insights. Private Equity has been known to be conservative in IT investments. As our data shows, as PE becomes a larger part of […]
I had a chance to re-read the great study from INSEAD on the emerging new models of value creation ( VC 2.0). The research contrasts traditional value creation models to a new and more comprehensive framework.
Traditional value creation elements tend to be:
EBITDA impact – focusing on operational value creation, process […]
Last week we had our 22nd global PE operating partner dinner. This event roams around the globe and so far had our dinners in New York, London, Beijing, Hong Kong, Singapore, Seoul, Tokyo, Sao Paulo. The primary purpose of the dinners is to bring together operating partners and experts focusing on value creation in the fast […]
I just returned from a trip to Japan talking to a dozen private equity firms about market and economic outlook.
Bain’s recently published report on the next decade’s massive capital abundance talks about a baseline of low return expectations. One way many firms countered this in the past was increased allocations to emerging […]
Ever since I got involved with Private Equity operators and their many times straightforward, simple and obvious finds for value creation, I wondered why management couldn’t find the same paths to success prior to change of ownership. Taking financial engineering aside, which is arguably a major value creator, what is most astonishing is how many […]
In the last few months China’s Private Equity revolution got a lot of attention due to the Focus Media LBO, touted as largest to date. Apart from size alone, I do think the shift from minority non-control investments to LBOs is very interesting. While I leave the regulatory and financial engineering aspects of these changes […]
I’m at an operating partner dinner in Calgary and this provided a great background for a conversation on the wide variety of operating partner models. Interestingly our firm holds these dinners around the world from New York to Beijing, London, Toronto, Singapore and other PE centers. We have seen the operating models work great in […]
A great new book recently hit the shelves by Jason Scharfman. While the topic is operations due diligence – this is the first book of its kind to get beyond financial due diligence into the risk in the operations of the business. What is uncovered in due diligence gives the eventual buyers an […]
While talking about refining business models is very common in Venture Capital discourse it is rarely discussed in PE literature. Bigger companies can benefit just as much from a structured review of the business model that leaves the world of spreadsheets and LBO models and brings management to the fundamental question – how do we […]