Pushing further in search of return: The new private equity model
Publisher:
PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft
An analysis of how private equity firms are building sustainable returns through operational excellence rather than acquisition multiples alone.
How operational excellence replaces acquisition multiples as the primary return driver
Why private equity firms are extending holding periods and hiring operational specialists
Diverse exit strategies including IPOs and corporate sales beyond traditional resales
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Year:
2015
Language:
English
Pages:
37
File Format:
Abstract
Private equity funds have record levels of dry powder and easy access to debt finance, a picture that harks back to the boom years of 2004–2007. But this is a very different marketplace. With the supply of quality assets failing to match demand, buyers are paying premium prices to acquire target companies. This requires them to generate more value from the asset to meet their return objectives, which takes longer – holding periods have increased – and demands more investment in efficiency, channel effectiveness and other forms of operational improvement.