Lessons from Private Equity Any Company Can Use

Conclusion

Let’s close with a last look at the two companies we used as examples in our opening section. Nestlé and Crown Castle represent well-run organizations that demonstrate how all of these PE lessons can be applied, regardless of ownership model.

At Nestlé, one can look back at Brabeck’s original full-potential thesis and cite facts that show he in large part arrived (before his announcement in late 2007 that he would name a successor as CEO in 2008). For starters, Nestlé’s share price, once trading at a discount, transformed itself into a premium, having boosted market capitalization 3.5 times to more than SF 200 billion in the last ten years. By fall 2007, it had exceeded its original goal for total shareholder return (TSR) by achieving ...