By investing in strategy, people, and execution before and after the deal, PE firms can build scalable businesses with outsized returns.
In private equity, the true measure of success lies not just in closing deals, but in creating enduring value before and after the ink dries. As competition intensifies and valuations remain high, firms must look beyond financial engineering and focus on strategic, operational, and cultural levers driving sustainable growth.
Before the deal: Laying the groundwork for value creation for private equity firms
Strategic targeting and thesis development
Value creation starts with a clear investment thesis. Identify targets aligning with sector trends, operational improvement opportunities, and strategic synergies. This means:
- Industry mapping — Understanding macroeconomic drivers, regulatory shifts, and competitive dynamics.
- Thesis-driven outreach — Engaging targets with a compelling narrative around growth, transformation, and partnership.
Diligence beyond the numbers
Traditional financial diligence is no longer enough. Leading firms are expanding their lens to include:
- Commercial diligence — Assessing market positioning, customer dynamics, and growth potential.
- Operational diligence — Evaluating scalability, supply chain resilience, and technology infrastructure.
- Human capital diligence — Understanding leadership capabilities, culture, and talent gaps.
Pre-close planning
Start value creation planning before the deal closes. This includes:
- 100-day plans — Outline immediate priorities for integration, cost assessment, and strategic alignment.
- Leadership alignment — Seek management buy-in and clarity on post-close expectations.
- Digital readiness assessment — Gauge the company’s ability to leverage technology for scale.
After the deal: Executing the growth playbook for private equity firms
Operational excellence
Post-close, the focus shifts to execution. Key areas include:
- Process assessment — Streamlining operations to reduce waste and improve margins.
- Technology enablement — Implementing ERP systems, automation, and data analytics to drive efficiency.
- Supply chain resilience — Diversifying suppliers and building agility into procurement strategies.
Talent and leadership development
People are the engine of growth. PE firms should:
- Assess and upgrade leadership — Put the right people in the right roles.
- Build culture and engagement — Foster a performance-driven, accountable culture.
- Invest in training and development — Equip teams with the skills needed for transformation.
Strategic growth initiatives
Growth must be intentional and multi-dimensional:
- Organic growth — Expand product lines, enter new markets, and deepen customer relationships.
- M&A strategy — Pursue tuck-in acquisitions complementing the core business.
- Digital transformation — Leverage data and technology to unlock new revenue streams.
Financial discipline and KPI tracking
Robust fiscal management is essential:
- Cash flow assessment — Improve working capital and reduce leakage.
- KPI dashboards — Monitor performance in real-time to enable agile decision-making.
- Exit planning — Begin with the end in mind, aligning operations and strategy with exit goals.
How CLA can help private equity with value creation during deals
CLA understands value creation is a journey — not a transaction. Our integrated approach helps private equity firms and their portfolio companies unlock growth at every stage of the investment lifecycle.
- Pre-deal support: Including investment thesis validation, due diligence services, and strategic fit analysis.
- Post-close execution: Including value creation planning, operational improvement, digital and data transformation, talent strategy, and advisory.
- Exit readiness: Including sell-side preparation and valuation enhancement.
By investing in strategy, people, and execution both before and after the deal, private equity firms can build resilient, scalable businesses with outsized returns and lasting impact. With CLA as your advisor, you gain more than a consultant — you gain a team committed to helping you build for growth.