Summary
Fierce competition, an abundance of capital and high multiples demand more from private equity firms to identify the best investment opportunities and to close deals quickly.
In the first of a series of Executive Insights on the challenges in creating value through transactions, L.E.K. Managing Directors Peter McKelvey and Francois Mallette examine six ways in which successful PE firms are delivering stellar returns at a time when global growth remains sluggish.
The key is knowing how to leverage advantaged deal flow by deploying one or several of the following strategies:
- Choosing a winning sector early in its development
- Buying and building from a smaller platform
- Leveraging knowledge developed from owned and divested assets
- Deploying superior management
- Targeting underperforming companies
- Performing equity carve-outs of orphan divisions of large corporations
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