Value Creation via the Top Line

Mark Billige, Board Member and UK Managing Partner, discusses the importance of a topline focus for Private Equity companies. With 68% of investment case upside built around revenue enhancement initiatives (according to recent research), the big growth opportunity is clearly perceived by PEs to lie on the revenue side.

Why do almost 40% of Private Equity revenue enhancement initiatives fail? From our experience, whether a portfolio company exceeds or fails to meet their top line goals usually comes down to the same 3 things:

1. Balancing senior management & Private Equity involvement
2. Focusing on the right factors for each portfolio company
3. Building capability in key top line areas