Lessons from Private Equity Any Company Can Use (Memo to the CEO)
Contents:
It is easier to do "fine" than to do the best a company can do. This pervasive disease of satisfactory underperformance can be cured by applying PE lessons.
Special order items
Briefly, the six lessons are:. Top PE firms generate high returns primarily by creating operating value.
The authors state up front that there are 6 key principles or steps in maximizing the value of your company and proceed to do a short chapter on each of these principles, with 1 or 2 anecdotes to illustrate their points. When I ordered this book, I didn't realize how small and short it would be, so I was a bit caught off guard when it arrived. Kindle Cloud Reader Read instantly in your browser. Want to continue the conversation? Each point is articulated clearly, followed by one or two relevant examples.
They start by building an objective fact base. They scrutinize demand, customers, competition, environmental trends and the details of how money is actually made. Only then do they pursue a few core initiatives to reach full potential. PE blueprints are about action. They turn the few core initiatives into results, choreographing actions from standing start to the finish line.
Top PE firms mold the organization to the blueprint, use a rigorous program, and monitor a few key metrics. Top PE firms create the right incentives for employees to act like owners, and they assemble decisive and efficient boards. Top PE firms embrace leverage.
This is perhaps one of the toughest PE disciplines to adopt, and one that CEOs and their boards should consider carefully, especially when credit is tightening. But CEOs, too, should get comfortable with leverage. Scarce cash compels managers to manage working capital aggressively, discipline capital expenditures, and work the balance sheet hard. Foster a result-oriented mindset: This lesson is about creating repeatable processes that spur performance improvements again and again. Buy the book at Amazon. Learn the step-by-step process for startup investing from a venture capital analyst. Written by Richard C.
Wilson, founder of the Family Office Club. The book will pay itself off in the first couple of pages. The Expert Answer from Richard Mowrey. Get the expert answers to sell your business for the highest price in the right way. Put these secrets to work for you now! Product details File Size: February 7, Sold by: Related Video Shorts 0 Upload your video. Share your thoughts with other customers. Write a customer review. Read reviews that mention firms value business companies authors management potential bain gadiesh examples capital executives practices macarthur advice investors industries ceos ownership helpful.
There was a problem filtering reviews right now.
Lessons from Private Equity Any Company Can Use
Please try again later. This is a great little book about how the best PE firms enhance value at portfolio companies. It offers specific steps at a high level that any CEO can implement in his own firm. Each point is articulated clearly, followed by one or two relevant examples. A couple of the examples would benefit from more detail, but this "book" is really just a longish essay, and as a result, is brief and to-the-point which I prefer vs authors who write the same thing over and over again to try to fill a book.
Сведения о продавце
Overall, an interesting, helpful little book. I enjoyed it enough to buy a couple more copies for executive friends. When I ordered this book, I didn't realize how small and short it would be, so I was a bit caught off guard when it arrived.
However, it was densely written and to the point, and chock full of good advice for executives looking to groom their company for a sale in years at a multiple of its current value. The authors state up front that there are 6 key principles or steps in maximizing the value of your company and proceed to do a short chapter on each of these principles, with 1 or 2 anecdotes to illustrate their points.
Some of their ideas are probably easier said than done, such as defining the strategy or reshuffling the Board of Directors to be more useful. The overall message of relentless focus, goal-orientation and accountability, high rewards for the management teams who succeed all are spot on. The only downside to the book, in my view, is that it is very focused on large companies rather than how to take those principles downward to a smaller scale.
- Kindle Feature Spotlight.
- Bookseller Completion Rate.
- Standoff at the Waterin Horse Saloon?
- Spanish Steps: Travel?
- Kilted Lover.
Some examples from mid-market companies would have made it more relatable. Some parts are also quite technical, when they get into managing debt-equity ratios, structures of the Board, etc. Overall I would recommend it for anyone in an executive position at a mid- to large-scale enterprise who is looking to turnaround a business and flip it, or who is anticipating getting private equity investments and wants to better understand in advance what the PE guys are probably thinking.
After having abundant consulting experience of working with PE players, they maintain that there are at least six deceptively simple rules in which PE players set a concrete and inescapable benchmark for corporate performance. Like other non-PE players, the key objective of PE players is to keep generating attractive returns for their investments within a specified time. Nowadays Gadiesh and MacArthur conclude that top quartile PE players adopt six rules to build values in their investments instead of relying mainly on asset stripping and debt loading exercises.
The six rules encompass every pre- and post-acquisition step from due diligence, business renovation, and performance management to talent retention, capital allocation, and corporate culture. At first blush, senior executives from non-PE players might argue that ownership and business models of PE players are not homogeneous so that their business practices cannot be fully applicable to non-PE players. However, the six rules, particularly performance acceleration, working capital management, and talent management, are all that non-PE players should learn from if they intends to build value for their investments.
It is highly recommended for senior executives who are not too familiar with business practices of PE players and for those who are getting lost in the clouds or being handcuffed by tradition-bound and antiquated systems while spearheading operational performance improvement for their firms.
Kindle Edition Verified Purchase. I wish I read this book before.
- See a Problem?.
- Customers who bought this item also bought.
- Lessons from Private Equity Any Company Can Use by Orit Gadiesh!
- Economies in Transition: A Guide to China, Cuba, Mongolia, North Korea and Vietnam at the turn of th;
Although having managed and built businesses for several years by now, I learnt a lot from this book that will help me take my business to the next level. At minimum, this book motivated and encouraged me to think and act more aggressively in a structuring my companies growth plans, b helped me see more clearly the people and management skills and mindset needed, and c changed my focus from budget growth to full potential realization and efficiency.
Memo to the CEO: Lessons from Private Equity Any Company Can Use
All in all - a recommended reading for business owners, entrepreneurs, CEO's, board members, and those seeking to invest and transform business. Great condensed view of the PE approach, this is a good reference material for anyone interested in how a PE creates value. Wish that there were more specific examples as to how firms set their blueprints and how exactly it executed those blueprints.
But good intro to thought process of PE firms. Ok, but not worth the expense. The book was a quick read. Offering high-level suggestions on the pe modus operandi that can easily be adopted and understood. See all 34 reviews. Most recent customer reviews. Published 6 months ago. Published 8 months ago.
Published 11 months ago. Published 1 year ago. Published on August 14, Published on January 28, Amazon Giveaway allows you to run promotional giveaways in order to create buzz, reward your audience, and attract new followers and customers.