Observations on how Financial (PE) and Strategic (Corp Dev) Investors Consider Segmentation Opportunities Differently from One Another
Serving a wide-range of clients, one pattern that I have noticed is the degree to which the strongest Corp Dev groups (the “Strategics”) consider customer segments as a means for asset value creation – and do so in ways that outrun what many Private Equity firms consider.
Value Gen: Transitioning the Core Business
In search of higher multiples, investors and their advisors are increasingly pressuring companies to transition their core business to match “themes” that earn higher valuations. For instance, businesses that would rightly be described as professional services with just a hintof a technology base – such as a staffing service with a proprietary database – become “technology enabled…
Using Diligence and the Ownership Change to Leverage What Matters to Customers
Conducting commercial diligence that matters should equip the new owner and the leadership team with insights that can quickly make an impact on market share and pricing opportunities (among other opportunities).
Three Key Steps for Crafting a Robust Value Generation Plan
Value creation ("Value Gen") isn’t easy right now. Average transaction multiples are at their highest level in 10 years. More and more prospective targets have already been through multiple rounds of PE ownership, with the “easy and obvious” value improvements already made. Fewer proprietary deals seem to exist.