Three Operational Improvement Tactics to Accelerate Private Equity Value Creation

Operational improvements are a key lever for achieving value creation after a deal closes. There are three critical ways private equity firms can both protect and grow value through operations. One way is to lead differently, beginning with recognizing that the due diligence process can cause employees to be apprehensive. When leaders understand and address their team’s natural concerns about the acquisition, they can prevent value erosion—including the risk of high performers leaving to pursue other opportunities—in the early days following an acquisition. The two other ways to ensure value creation are optimization for the future and measure for success.