The PE industry has evolved since the 1980’s. Back then, the industry used leverage to generate investor returns. In the 1990’s the PE Industry made money by buying companies and expanding them. The 2000’s ushered in a period of earnings growth fueled by strong beta market growth trends. And now, for better or for worse, the industry is being driven by returns PE firms are generating through management of and operational improvements in their portfolio companies. Continue reading The Brave New PE World
Tag Archives: E&Y
E&Y, WSJ & CFO Agree: Slower Growth is The New Normal
A recent E&Y report was especially sobering. It concluded that after 2-3 years of “recovery” it will be more difficult for companies to generate growth in the months and years to come. In E&Y’s words:
“Our research ….. suggests there is not going to be an early return to the business conditions that drove growth in the past decade. The economic forecast for the coming years is for a slow recovery and some slowdown even in the faster growing emerging markets, as demand in developed markets remains weak. To grow and succeed in such an environment will require that companies intensify their competitive efforts…Most growth will have to be won from competitors.” Continue reading E&Y, WSJ & CFO Agree: Slower Growth is The New Normal
Ernst & Young on Growth – If a Company Needs Growth It Needs a Plan
For years, E&Y has been surveying corporations around the world on many subjects including a recent thread on what it takes to grow a company in today’s markets. This year’s report was especially sobering in a couple of ways. One such sobering thought was that after 2-3 years of “recovery” one would think that growth on a company level would be getting easier. However, the E&Y survey confirmed that growth for most companies it is actually getting more difficult to achieve. Continue reading Ernst & Young on Growth – If a Company Needs Growth It Needs a Plan