Few PE firms systematically focus on pricing transformations, though such programs can create substantial value. Here’s how pricing value can be captured at any stage in the deal cycle.
Over the years, private equity (PE) firms have mastered the art of creating value for their portfolio companies through cost reduction, talent upgrades, and financial engineering. Moreover, they have built valuable experience in recognizing patterns that allow them to spot and invest in the best portfolio targets. In contrast, most PE owners do not display the same level of fluency or confidence in commercial productivity—especially in pricing.
