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𝗣𝗘 𝗩𝗮𝗹𝘂𝗲 𝗖𝗿𝗲𝗮𝘁𝗶𝗼𝗻: 𝗧𝗵𝗲 𝗡𝗲𝘄 𝗣𝗹𝗮𝘆𝗯𝗼𝗼𝗸 𝗳𝗼𝗿 𝗘𝘅𝗰𝗲𝗽𝘁𝗶𝗼𝗻𝗮𝗹 𝗥𝗲𝘁𝘂𝗿𝗻𝘀 In today's competitive PE landscape, value creation is the ultimate differentiator. Here are 5 key strategies with real-world examples: 1️⃣ 𝗥𝗲𝘃𝗲𝗻𝘂𝗲 𝗚𝗿𝗼𝘄𝘁𝗵: 𝗗𝗿𝗶𝘃𝗲 𝗧𝗼𝗽-𝗟𝗶𝗻𝗲 𝗘𝘅𝗽𝗮𝗻𝘀𝗶𝗼𝗻 • Example: Vista Equity's investment in Cvent • Expanded product offerings and entered new markets • Result: Revenue grew from $111M to $569M in 5 years 2️⃣ 𝗠𝗮𝗿𝗴𝗶𝗻 𝗘𝘅𝗽𝗮𝗻𝘀𝗶𝗼𝗻: 𝗢𝗽𝘁𝗶𝗺𝗶𝘇𝗲 𝗢𝗽𝗲𝗿𝗮𝘁𝗶𝗼𝗻𝘀 • Example: KKR's investment in Capsugel • Implemented lean manufacturing and supply chain optimization • Result: EBITDA margins improved from 24% to 30% 3️⃣ 𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝗶𝗰 𝗔𝗰𝗾𝘂𝗶𝘀𝗶𝘁𝗶𝗼𝗻𝘀: 𝗕𝘂𝘆 𝗮𝗻𝗱 𝗕𝘂𝗶𝗹𝗱 • Example: Thoma Bravo's playbook with software companies • Executed 500+ add-ons across portfolio • Result: Consistently outperformed market returns 4️⃣ 𝗗𝗲𝗯𝘁 𝗣𝗮𝘆𝗱𝗼𝘄𝗻: 𝗟𝗲𝘃𝗲𝗿𝗮𝗴𝗲 𝗖𝗮𝘀𝗵 𝗙𝗹𝗼𝘄 • Example: Bain Capital's investment in Worldpay • Focused on rapid deleveraging post-acquisition • Result: Debt-to-EBITDA ratio decreased from 7.7x to 4.3x in 3 years 5️⃣ 𝗠𝘂𝗹𝘁𝗶𝗽𝗹𝗲 𝗘𝘅𝗽𝗮𝗻𝘀𝗶𝗼𝗻: 𝗣𝗼𝘀𝗶𝘁𝗶𝗼𝗻 𝗳𝗼𝗿 𝗘𝘅𝗶𝘁 • Example: Hellman & Friedman's investment in Kronos • Transformed from on-premise to SaaS model • Result: Exit multiple expanded from 9x to 21x EBITDA Key considerations: → Tailor strategies to each portfolio company's unique situation → Align management incentives with value creation goals → Leverage data and technology to drive decision-making → Balance short-term wins with long-term sustainable growth How are you adapting your value creation playbook in today's market? What strategies have you found most effective in driving exceptional returns?

Michael Hess

Executive Chairman at ISCP TronMedia. M&A/Finance Leader. Digital Marketing & Media. Sustainable Development. International Meditation Teacher.

3mo

Perfect step by step explanation of the TronMedia playbook!

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