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When Private Equity Becomes the Competitor

Volume XVIII, Issue 13
May 2, 2016
by ,
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Summary

When a key competitor is acquired by a private equity interest, existing companies face a potentially serious challenge that requires an immediate response and an informed action plan. Faced with a well-financed competitor, incumbent firms may find the standard rules of engagement to be woefully inadequate, and therefore need to revisit approaches to fending off a competitor’s potential advances.

In this Executive Insights, L.E.K. details a number of key adjustments to strategic growth priorities available to incumbents to maintain a competitive advantage and respond to industry M&A developments:

  • Pricing
  • Capacity/manufacturing
  • Innovation
  • Channel
  • M&A

These are only a few of the solutions available to incumbents, and not all options are relevant to every incumbent. L.E.K. can provide firms with additional insights on an individual basis.

 

http://cdn.lek.com/sites/default/files/When-Private%20Equity-Becomes-The-Competitor_My-Competitor-Was-Bought-By-A-PE-Fund_LEK-Executive-Insights_1813.pdf