PwC’s Creating value beyond the deal: private equity report found that more value can be driven by revenue enhancement, rather than just cost-cutting. Only 45% of the 100 private equity partners we interviewed say they realise deal value through revenue enhancement. Cost-cutting is no longer enough; dealmakers need to look at how to optimise revenue, even if this is often challenging to achieve.
The research found that PE houses are typically more focused on driving cost benefits, leaving scope to enhance benefits to the topline. Realising revenue benefits plays a key role in deals, with 75% of the most successful deals achieving topline growth.
Mastering the journey of creating value in deals has never been so important and this report will detail how dealmakers can buck the trend and win in the new deals environment.