Baker Tilly US’ Post

The Global PE Report from Bain & Company emphasizes the importance of refreshing the value creation plan or creating a new one. Maestro can help! Check us out. From the report.. “For many, the time is now to refresh the value-creation plan (or develop a new one) and start showing early results to build credibility.” … “The teams that are closing transactions these days build credibility among buyers in three important ways: - They provide evidence of action-driven success during the holding period by linking positive results to specific management initiatives. - They demonstrate that there’s still money on the table by laying out a clear path to future value creation. - Finally, they present clear reasons to believe by highlighting how the company has put points on the board with a new plan to accelerate revenue or improve profitability in the years to come.” https://lnkd.in/eXE5J9Gy

In today's fast-paced market, private equity professionals face a unique set of challenges. The landscape is evolving rapidly, and staying ahead requires agility and strategic foresight. Here are some of the key hurdles: 🔹 **Increased Competition**: With more players entering the private equity space, the competition for high-quality deals has intensified. This means that firms need to be more innovative and strategic in their approach to sourcing and securing investments. 🔹 **Regulatory Changes**: Navigating the ever-changing regulatory environment can be daunting. New compliance requirements and policies can impact deal structures and timelines, making it essential for professionals to stay informed and adaptable. 🔹 **Economic Uncertainty**: Fluctuations in the economy, such as inflation rates and market volatility, add layers of complexity to investment decisions. Private equity firms must be adept at risk management and scenario planning to safeguard their investments. At ZETA CONSULTING, we understand these challenges and are committed to helping you build robust Finance and Accounting leadership teams for your portfolio companies. Our expertise ensures that you have the right talent to navigate these complexities and drive success. What challenges are you facing in the current market? Share your thoughts in the comments or visit www.zetaconsulting.net to learn how we can support your executive search needs. #PrivateEquity #InvestmentChallenges #Leadership

In our frequent discussions with wealth management leaders, we continue to see Organic Growth on the list of their top priorities. It’s a priority that has been challenging to solve for so many wealth management firms … which is why it remains on the list year after year. As suggested in this piece, one of the best ways to grow organically (and sustain that growth) is to ensure the delivery of a consistent and “confidence-building” client experience. While many in the industry recognize this as an opportunity to drive growth, most don’t take action because they’re unsure how to get started. #organicgrowth #clientexperience #financialservices #growthstrategy #sales #training #wealthmanagemewnt https://lnkd.in/eAsuQptw

In today's fast-paced market, private equity professionals face a unique set of challenges. The landscape is evolving rapidly, and staying ahead requires agility and strategic foresight. Here are some of the key hurdles: 🔹 **Increased Competition**: With more players entering the private equity space, the competition for high-quality deals has intensified. This means that firms need to be more innovative and strategic in their approach to sourcing and securing investments. 🔹 **Regulatory Changes**: Navigating the ever-changing regulatory environment can be daunting. New compliance requirements and policies can impact deal structures and timelines, making it essential for professionals to stay informed and adaptable. 🔹 **Economic Uncertainty**: Fluctuations in the economy, such as inflation rates and market volatility, add layers of complexity to investment decisions. Private equity firms must be adept at risk management and scenario planning to safeguard their investments. At ZETA CONSULTING, we understand these challenges and are committed to helping you build robust Finance and Accounting leadership teams for your portfolio companies. Our expertise ensures that you have the right talent to navigate these complexities and drive success. What challenges are you facing in the current market? Share your thoughts in the comments or visit www.zetaconsulting.net to learn how we can support your executive search needs. #PrivateEquity #InvestmentChallenges #Leadership

Yesterday was New Year’s Resolutions Day, which is lovely and can indeed be useful. It is similar to starting a discussion on corporate strategy and McKinsey’s “Odds of Strategy“ based three-question framework may be helpful — Who you are, where you are, and what you can do — so may as well use it today. Firstly, consider what you are. Your size, amongst many things, gives you positioning and negotiating strength. Your ability to raise funds (dry powder/firepower/war chest) provides the capacity to afford free cash flow growth. Potential competitive advantages resulting from ongoing R&D investment or intellectual property can give you differentiation. Cannot afford self-deception here. Next, think of where you are; what industry you are in, how do you position within it and why; Is your industry in a tailwind and you need to keep up the pace, or a downtrending industry, so may need to change your core. Sounds familiar? Last and more important point is what can be done. Seek differentiation; competitive advantages, say R&D, IP, or any unique capability may allow you to improve gross margin. Get your house together: operating profitability is essential so a well-managed cost structure is key; if operating margin implies value destruction, the more you grow the core, the more value you destroy. Organic growth; strengthen your core business while looking up/downstream or even adjacencies. Can also acquire cash flows through M&A, making sure synergies make the combined value higher than the sum of the parts — PV of potential synergies higher than premium — Also divestitures; consider letting go of non-performing units. Reallocate capital to the businesses with higher operating performance prospects. While some businesses may require maintenance only, reallocating capital to units with higher prospects contingent to investment not only optimizes funds allocation and presents the company as self-aware and disciplined, but also improves your odds to increase value. Kind of works for both. #corporatestrategy #corporatefinance #newyear #mckinsey

Bain & Company's 2024 Global Private Equity Report signals unprecedented competition for capital. The supply/demand mismatch is the worst in over a decade. So, how can middle market private equity firms rise above the noise? The answer lies in a robust, forward-looking set of differentiators centered around operational capabilities, responsible investment practices and the ability to drive substantial value creation. Operational acumen is non-negotiable. Firms, particularly middle market firms, need to communicate a track record of not just identifying but leading on revenue growth and digital transformation. It’s about proving that you can roll up your sleeves and enhance the value of a portfolio company from the inside out. Limited Partners and Portfolio Execs being courted by PE: In your due diligence, give weight to firms that exhibit not just historical investment returns but also a clear and compelling strategy for future operationally-focused value creation. #pe #privateequity #limitedpartners #valuecreation #operatingpartners

"When it works, it works beautifully."   This sentence, drawn from Bain & Company's latest annual global #PrivateEquity report, perfectly sums up why buy-and-build has been a cornerstone strategy for the industry ever since – and why the ability to execute a clear value creation plan is now more important than ever.   In today's environment, where the tailwinds of low interest rates and a favorable macroeconomic landscape have faded, the “build-in” effect of multiple expansion through topline growth to generate returns has also been muted. Instead, there is an increasing emphasis on generating operating leverage by boosting both revenues and margins.   An analysis of 44 buy-and-build deals executed between 2010 and 2019 made by Bain shows that deals where value creation was dependent solely on multiple arbitrage generated an average multiple on invested capital (MOIC) of only 1.4x, while those underpinned by a strategic rationale driving accelerated organic growth or meaningful margin improvement generated an MOIC of 2.2x.   At MPEP, we have a strong focus on managers with proven operational expertise and/or deep sector expertise who work closely with their portfolio companies to deliver on pre-defined value creation plans. While our partners may follow different approaches, they all demonstrated their outstanding value creation capabilities by having generated an average MOIC of 3.8x across all 99 successful company divestments.   Given the ongoing global uncertainty and recessionary trends, we are extremely grateful for the opportunity to be part of their impactful journey and look forward to seeing it “work” again.   #CapitalWithCharacter

Bain’s 2024 Global M&A Report examines the state of the market and offers our perspective on the year ahead. We investigate the impact of generative artificial intelligence and regulatory scrutiny on dealmaking, exploring different industries and regions.

Bain’s 2024 Global M&A Report examines the state of the market and offers our perspective on the year ahead. We investigate the impact of generative artificial intelligence and regulatory scrutiny on dealmaking, exploring different industries and regions.

Bain’s 2024 Global M&A Report examines the state of the market and offers our perspective on the year ahead. We investigate the impact of generative artificial intelligence and regulatory scrutiny on dealmaking, exploring different industries and regions.