QuickValue: Discover Your Value and Empower Your Business in Three Easy Steps

CHAPTER 8

Private Equity CEOs

In this chapter, we are going to look at a specialized and growing category of midsize businesses—those owned by private equity investors. The challenges they face differ from those of traditional companies in that the imperative to produce results is compressed and intensified. The average life span for a private equity investment is three to five years. In that short time, the business must improve and grow—in other words, increase in value—to achieve the financial return that investors expect. This requires the owners to be hyperfocused on value creation. As we will see, the private equity firms that invest in these companies have their own tried-and-true approaches to valuation. Yet the CEOs and executives ...