Value Creation in Private Equity

In this video, we look at three parts for value creation in private equity:
1) Operational improvement (change in EBITDA)
2) Multiple expansion (change in multiple)
3) Deal structuring (change in net debt)

In recent years, value creation has primarily been achieved through methods #1 and #2 (operational improvement and multiple expansion). We look at real life examples when exploring these concepts, such as the 2004 acquisition of Dollarama by Bain Capital.

We also highlight the "Created Value Attribution" framework from PJ Viscio and George Pushner at Duff & Phelps. Finally, we explain the "buy and build" strategy for value creation.

Видео Value Creation in Private Equity канала Steve Balaban