Member Content
Kearney: Improve margins and ensure a successful exit with an operational improvement plan
Published
Share

Kearney: Improve margins and ensure a successful exit with an operational improvement plan

As valuation multiples reach all-time highs and interest rates are expected to increase, PE funds must continue to focus on expanding the revenue and margins of their portfolio companies.

As leveraged buyout valuation multiples continue to rise and with high-yield interest rates nearing an all-time low in 2020, more private equity (PE) buyers are looking to acquire well-managed businesses with strong growth potential that can still offer an upside in terms of margins (see figure 1). In fact, our analysis of about 1,800 leveraged buyout exits suggests that revenue and margin growth are becoming more important to generating high returns (see figure 2).

Growing multiples and shrinking interest rates are making operational improvement more important for private equity funds

Read the full article here. For more resources, visit the Holland FinTech dedicated insights page here.
Share this Article
Related Insights
Featured
Dutch FinTech Map 2022
Make sure your company is on the map! Are you a member, or active in the Netherlands? Provide your details to be featured!
Amsterdam Fintech Week
Amsterdam FinTech Week is back on 9-16 September, fully in-person and online. Be a sponsor, co-organizer, or just participate at the summit or one of the countless side events.
AMLD5 Guide
A source for consulting PSD2 legislation coupled with commentary, tips & tricks, applicability, in collaboration with our member law firms.

How likely are you to recommend Holland FinTech?