PE Consulting: Value Creation
With multiples being so high in the current economic cycle, value creation has become a central point of differentiation for GPs, says RSM’s Blaine Clark.
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PE Consulting: Value Creation
With Blaine Clark of RSM
Blaine Clark, RSM: Well every investment has an investment thesis. And the real goal there is to set a strategy that’s going to drive EBITA, positive EBITA, and therefore value creation. Those are typically called a 100-‐day plan, and what happens in the first 100 days typically sets the stage for what’s going to happen going forward in value creation. So that’s an extremely important period of time.
The most successful investors I’ve seen are operationally focused, and therefore have operation models that they put in place after the investment takes place. And they’re really focused on using the assets in the investment that they’ve made to really drive EBITA.