On May 17, 2012, McGladrey in conjunction with Pitchbook published their annual survey of professionals within the Private Equity industry. As we have been blogging for some time, it is clear that the PE industry focus is shifting in a big way into a much more active portfolio management phase. Continue reading McGladrey and Pitchbook Outline a PE Industry Shift to More Active Portfolio Management
Category Archives: Blog
An Outline for Generating Alpha Company Growth in the Middle Market
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
Bain and Company Gets it Right and Then Misses the Mark
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
If You Need Growth In Your Business, But Think You Can’t Afford It, How About a Free Lunch?
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?
When Things Get Desperate – Consider a Price Increase
It may seem counter-intuitive to think that a company has an opportunity to increase its prices when it is in distress. Yet, we have found in many; maybe even in most cases that distressed clients have pricing power with their customers. Continue reading When Things Get Desperate – Consider a Price Increase
Spend on Core Competencies – Eliminate Waste and Grow Sales
Several common refrains about spending are often untrue. It is often untrue that grandfathered spending programs or trade allowances are simply “the cost of doing business”. In a similar vein, it is often not accurate when executives say that if “we stop that program our sales will dry up over-night”. Finally it is definitely untrue when some say that “all spending has some beneficial effect on my business”. Continue reading Spend on Core Competencies – Eliminate Waste and Grow Sales
For Brands-The Core Competency is the Brand Equity-Focusing on the Equity is the Secret to Growth
For many years, Revlon had one the of the largest shampoo and conditioner brands in the US. Revlon Flex sold more units than did Suave, White Rain, Pantene and Finesse. Revlon Flex was the proverbial “stack it high and let it fly” brand. Continue reading For Brands-The Core Competency is the Brand Equity-Focusing on the Equity is the Secret to Growth