Simon Taylor’s Post

Private equity funds have a significant investment in the business service sector. Yet these disseminated labor-intensive service businesses, or branch-based businesses, are often ripe for EBITDA improvement. In the second installment of the “Transforming Branch-Based Business Operations” series, A&M Private Equity experts build on the creation of an ideal operational model to outline the best steps to migrate to the new model. From right-sizing all aspects of the operation, to standardizing frontline sales, to providing lean support, the ultimate goal is to drive sustainable operations and enrich the PE fund portfolio. Read our insights here: https://okt.to/MDWqlo #AMon #PrivateEquity #EBITDA Brian Long Bala Ekambaram Matt Cox Jefferson Shirley

Check out this new blog on Value Creation for Private Equity by our partner Chris Wenzke. Good stuff. Fisher Management Partners. #valuecreation #privateequity #partnertogrow #strategyexecution

"The ability to grow #margins tends to set the best PE investments apart." Great read from Madeline Shi at PitchBook about creating value in portfolio companies. 3 key takeaways for me: 1. Improving portfolio companies is no small feat. 2. Planning for these changes often starts early on in the transaction. 3. The team needs to continually be answering the 'What's next?' question as it relates to value creation. Tom Ruble, Gary Chatell

Maximizing Potential: How Private Equity Accelerates Growth Strategies

This post educates about the strategic shift in private equity firms towards driving value growth through margin expansion in their portfolio companies. With rising financing costs and decreased valuations, #PE firms are focusing on enhancing margins to boost profitability. At ERA Group, we specialize in driving operational efficiency and profitability to support this essential aspect of value creation. #marginexpansion #privateequity #operationalgrowth #valuecreation

PE funds leveraging experienced executives to implement operational changes in portfolio companies are yielding higher returns. Success lies in identifying executives attuned to the accelerated pace and demands of driving change within these companies. #PrivateEquity #OperationalChanges #ExecutiveLeadership #valueCreation

If you are an #SME owner and you want to be attractive to private equity, then make sure these 4 things are in order. 1. Strong Management.  They seek a strong management team that can drive consistent profitable growth, revenue stability and solid cash flow for operational flexibility. 2. Competitive Advantage - the mote.  They look for a competitive advantage in the market. What makes your SME better than your competitor? What is your mote? Is it a patent or the capex required to enter or brand. For those who want to go deeper on this then I would recommend reading "7 Powers: The Foundations of Business Strategy" by Hamilton Helmer. 3. Operational Improvements These improvements have to be value accretive improvements not fixing issues. The fund generally do not want to restore the business but rather improve it. In a real estate setting, they want to change the colour palette or do some landscaping not knock down and rebuild. 4. Clear Exit Strategy This is the most important aspect of attracting private equity into your SME. The end must be clear so that the journey is known. If the fund can know where the investment will likely land and how they can get their capital out then the SME becomes significantly more attractive. Ultimately these 4 things must also be supported by the financial model of the business. In my view more SME owners should consider leveraging private equity to maximise their returns. If done well then all parties and stakeholders can be winners. If you want to chat about how we Frank Law + Advisory help clients prepare for and attract private capital into their business then reach out! #corporateadvisory #corporatelaw #privateequity

Valuing seed, start-up, and early-stage investments poses unique challenges due to limited financial history and uncertain future prospects. In our latest Advisory blog, we outline key valuation methods, including the Cost Approach, Market Approach, and Income Approach, each offering distinct advantages based on the company's stage and available data. Click the link below to read more. #BusinessAdvisory #Advisory #Valuation

Why RIAs are the perfect business partners, according to Bryan Staff of Merchant Investment Management. https://hubs.la/Q02kbj1H0 #RIAs #InvestmentManagement #BusinessPartners #GrowthPotential #FinancialInsights

How important is it to deep dive and transform in year 1 of new ownership? In an average #privateequity investment of a 5 year hold you have 260 weeks-60 months-20 Board Meetings to achieve #valuecreation https://ow.ly/6MpZ50Sa3fx