A host of recent studies from the likes of Deloitte, Bain & Company, McGladrey and others have all concluded the same thing: The PE Industry and the broader middle market have reached a critical tipping point where organic portfolio company growth is perhaps the preeminent need. However, as most PE firms and middle market companies know already, one of the only things clearer than the need for growth is the difficulty associated with attaining that growth. Continue reading Generating Organic Growth from Portfolio Companies in the PE Industry
It is becoming clear that an alpha growth planning function is a necessity for many stagnant middle market companies and their PE sponsors. After several years of flat markets, alpha growth is needed as according to most forecasters, companies will not be able to ride a new wave of beta market growth for at least the next 2-3 years. Continue reading An Outline for Generating Alpha Company Growth in the Middle Market
In its extensive analysis of the Private Equity Industry for 2011-2012, Bain and Company correctly identifies many of the problems and solutions for the PE industry, but then comes up short on the proper tactics needed to solve the problems. What is worse is that this may be emblematic of the fact that the PE industry itself is incapable of solving one of its most pressing industry problems. Continue reading Bain and Company Gets it Right and Then Misses the Mark
Over the last 4 years, the US economy has been in either a negative growth or in a slow growth mode. Unfortunately, the FED and most other forecasters believe that this trend will continue for at least the next 3 – 4 years with US GDP growth increasing at an annual rate of only 2%-3%. Because of the overall market weakness many companies too have seen their revenues decline. Continue reading If You Need Growth In Your Business, But Think You Can’t Afford It, How About a Free Lunch?