55% of private equity deals don't lead to revenue growth.
80% of deals that utilised a formalised approach to creating deal value delivered material returns.
57% of private equity dealmakers said cultural issues hampered value creation.
91% of the dealmakers who say their divestment created value ran their exit process according to a more formalised methodology.
Preparing for the sale of an investment at an early stage forces the sellers and the management teams to assess a business with potential buyers in mind. This is of particular importance in order to take advantage of deal opportunities in private equity.
Reducing costs is one area private equity investors typically pursue in a disciplined way. But in today’s markets, extracting cost synergies is not enough. Too few private equity investors (45%) realise revenue synergies.
50% of respondents cited putting value creation at the heart of the deal as the key lesson for future deals, closely followed by better communication with stakeholders. Ensuring strategic clarity from the outset, which is supported by a comprehensive value creation blueprint, has enabled the Private Equity dealmakers in our survey to enhance value from their acquisition.
Partner, Deals and Valuations Leader, PwC Switzerland
Tel: +41 58 792 15 64
Partner, Deals Strategy & Operations Leader, PwC Switzerland
Tel: +41 58 792 14 23