For General Partners, portfolio value is a function of EBITDA multiplied by Exit Multiple. Our playbooks are engineered to maximize both variables simultaneously, moving beyond simple EBITDA arbitrage to true multiple expansion.
1. The Value Creation Math
How our work flows through to MOIC (Multiple on Invested Capital):
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Value Creation Lever |
MOIC Impact |
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Commercial Excellence (5% EBITDA Growth) |
+1.0x – 1.5x MOIC |
|
Working Capital Release ($20M FCF) |
Fuels debt paydown or dividend recap → +0.4x – 0.7x MOIC |
|
Exit Multiple Expansion (1.0x Turn) |
+1.0x+ MOIC on entire exit EBITDA |
The Alpha Equation:
Top-quartile funds don’t just buy and sell; they Buy → Transform → Institutionalize → Sell Premium.
2. The Diligence-to-Value Playbook
Bridging the gap between promise and reality:
At Signing:
We see 500 bps of EBITDA expansion through pricing and procurement.
Our Response:
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- Baselining current price realization and cost structures before Day 1.
- Embedding a pricing manager and procurement lead into the 100-day plan.
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At Exit:
This company has been transformed into a scalable platform.
Our Response:
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- Providing the buyer with a documented, institutionalized value creation playbook.
- Showcasing a proven M&A integration capability and a technology stack built for growth.
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3. The Portfolio Company Toolkit
The 100-Day Value Capture Plan (For Day 1 as Board Members)
First 30 Days:
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- Launch war room with daily KPIs on pricing, cash flow, and critical initiatives.
- Secure “Quick Wins” in pricing and procurement to fund the transformation.
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Days 31-70:
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- Appoint value creation owners for each major initiative (e.g., VP of Pricing).
- Commence deep dives in sales effectiveness and supply chain optimization.
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Days 71-100:
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- Present a finalized, board-approved 3-year value creation plan with clear milestones.
- Refinance debt with improved EBITDA and FCF metrics.
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4. Why GPs Choose Us
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- Alignment to Your Timeline– We move at the speed of private equity, with focus on rapid results.
- Proven Playbooks – We deploy pre-built, industry-specific value creation templates from Day 1.
- Exit Focus – Every initiative is evaluated on its contribution to both EBITDA and multiple expansion.
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Recent GP Wins:
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- Lower Middle-Market GP: Achieved a 5.2x MOIC exit by using our pricing and sales effectiveness playbooks, which drove 40% of the total EBITDA growth during the hold period.
- Growth Equity Firm: Successfully pivoted a portfolio company’s narrative from “low-cost operator” to “tech-enabled platform,” adding 3.0x turns to the exit multiple.
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Your move: Schedule a Portfolio Company Value Assessment with our former PE Operating Partners.
Why Top-Tier Funds Retain Us
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- Former Operators & Investors – Our team consists of ex-PE Ops Partners and former portfolio company CEOs.
- Data-Driven Diagnostics – We use proprietary benchmarks to size value creation opportunities pre-investment.
- Hands-On Execution – We embed directly within portfolio companies to ensure plan execution, not just strategy.
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