Podcast: Create and sustain deals value in 2021

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11:49

Overview

In this episode, Kevin Keegan, PwC Private Equity partner on the Value Capture team, and Patrick Gordon, PwC US Private Equity Value Creation Leader, explore value creation and the private equity deals landscape as we enter 2021. They talk about how current conditions have affected value creation, shifting strategies, and what it all means for firms that want to refine their approach.

Duration: 11:49
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Topics include:

  • 00:25 - What is value creation for private equity? The execution of a planned set of actions that measurably improve an asset’s performance (e.g., EBITDA expansion, cashflow, or ROI). 
  • 01:06 - In today’s market demand is high, but supply is limited. There’s a lot of capital available for deals, but assets with the potential to create significant value are finite. Patrick discusses how firms can get better at spotting and screening opportunities and create more value at every stage of the deal cycle.
  • 04:22 - Today’s critical priorities. Funds are being a lot more rigorous about their 100-day plans and prioritizing value-capture initiatives sooner, along with favoring more traditional cost-cutting methods.
  • 05:55 - Want to create more value? Time to level up. Private equity firms need an integrated view of value creation (e.g., commercial, operational, tax, and regulatory) to understand the top risks and opportunities. The pandemic accelerated the use of technology in ways that aren’t going away and have the potential to uncover new ways to create value.
  • 09:13 - ESG is here to stay. And it’s going to broaden how we define value creation. As governments and other regulatory bodies monitor environmental and social metrics more rigorously, private equity will want to keep up or build brand distinction by fully participating in core ESG principles as a way to create and sustain value beyond income statements and balance sheet performance.

Podcast participants

Patrick Gordon

Patrick Gordon is PwC’s Private Equity Value Creation Leader. He has nearly three decades of experience advising private equity firms on due diligence and portfolio company value capture and has a proven track record of helping clients work through tough operational challenges.

Email Patrick

Kevin Keegan

Kevin Keegan is a PwC Private Equity Partner focused on deals strategy and value creation. In this role, he helps clients adopt practical and sustainable strategies that enhance growth and root out costs that can erode value.

Email Kevin

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