Perfecting Your Value Creation Strategy: Why Do Almost 40% of Private Equity Revenue Enhancement Initiatives Fail?

In recent years, the Private Equity industry has benefitted from a record high in investment, fund-raising and strong opportunities for fruitful exits, making it a preferred asset class. However this success comes at a price: Accumulated dry-powder and an increasingly competitive space have boosted purchase multiples to all-time highs, making it difficult to find and win suitable targets.

As a result of this, funds are having to work harder to achieve an ROI by identifying & executing long-term commercial improvements such as pricing, customer segmentation and sales initiatives.

Simon-Kucher & Partners runs an annual survey with senior leaders in the Private Equity space. Our latest round of interviews with industry professionals have revealed an increasing focus on value creation via top line initiatives to deliver ambitious investment goals. In fact almost 70% of investment case upside is linked to top line initiatives.