The Value Creating Agenda In European Private Equity

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150 of the leading minds in the sector assembled at Private Equity International’s Operating Partner Forum 2016: Europe. Here is an exclusive snapshot of 5 key takeaways from a list of 20 priorities shaping the future:

  • Impact trumping brand. What an Operating Partners does in future is more important than the size or diversity of the PE firm.
  • Little guys on the rise. Substantial “growth” opportunity in the next 12 months for small and boutique consultants and advisors. Tightly customised products and services, absolute credibility (IP), the ability to build a seductive rapport and convert it into increased market share .
  • 6 core value creation themes in 2016 (all businesses). 1. Structural transformation, 2. Operational improvement (often seen as unfashionable but where a lot of hidden value resides), 3. Buy and build platforms, 4. Emerging market growth, 5. Strategic repositioning and 6. Growth acceleration.
  • The Atlantic Divide. Limited Partners (LPs) report increasing geographic distinction between US and European PE  buyouts. In the US, a great frequency  of institutional buyouts (“IBO”), manifest in telling managers “we own your business, you will follow our approach”, consequently, management are more subservient. In Europe, a greater frequency of working with management and a greater propensity for peer-level relationships. Skills, behaviours and expertise needed differ, particularly communication.
  • The Digital PE Value Creation Wheel. Outstanding PE firms are embedding in their portfolio company due diligence 1. Product (capability), 2. Price (transparency), 3. Channel distribution (eCommerce), 4. Marketing (how they do it), 5. Operations (managing the business), 6. People (awareness, skills, behaviour)

Want the other 15 priorities, write to James@elliceconsulting.com  for a free copy of the full listing.

© James Berkeley. All Rights Reserved.

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