MFG Partners’ Post

Private equity firms who have their hands full with companies they can’t sell are “calling in the big guns” so to speak. More specifically, there is a trend of PE firms hiring industry veterans with the necessary experience to change things for the better. #PrivateEquity #Trends #PE

Last night I had the pleasure of attending a roundtable hosted by the KPMG TMT practice. Timely insights from the discussion: -Growth seeing higher valuation premiums > margin -M&A processes becoming narrower (i.e., fewer parties) and focusing on buyers who demonstrate differentiation and first mover advantage important to winning deals -Capex is the new M&A - corporates investing back into the businesses (e.g., AI related tech) at a higher return on capital than M&A -Huge monetization opportunity of hundreds of $billions worth of assets across PE / VC funds and everything is for sale (don’t assume anyone wants to hold on to anything for a proscribed period) -That said, PE investors appear more focused on MOIC vs. IRR and are willing to ride the cycle to achieve expected returns  -Eye on corporates to step back in and bridge the buy-side gap left by weak IPO market Thanks to our hosts: Paul Harris, Scott Purdy, Sagi Abiri

Beringer is diligent about attending sector events to ensure we have the latest and greatest intelligence on what's happening in the market, which enables us to bring value to our partners, investors and PortCos in the context of today’s environment.   Last week, Gil Ozir attended a KPMG Roundtable. Below are his "real-time" insights from that conversation. #valuecreation #privateequity #insights

Navigating the PE deal market? The key to enhancing transaction value lies in focusing earlier on value creation with rigorous pre-deal diligence. This strategy can unlock hidden opportunities and mitigate potential risks. Download our paper for more actionable insights for PE firms trying to navigate higher capital costs and extended holding periods: https://ow.ly/YR9W50REjxR

Financial engineering is no longer delivering the returns it once did for Private Equity. PE firms are hiring industry veterans with operational expertise to improve portfolio companies' performance. With higher interest rates and prolonged holding periods, operational improvements are necessary to service debt and ensure profitable exits. Hence, the importance of hands-on management skills is growing also in the PE environment. 

"Other firms are hamstrung by higher interest rates that have drastically changed the economics of transacting, holding and exiting portfolio companies." 📰 Our Vice President for Global Private Equity Practice Gary Hoover sat down with Layan Odeh to discuss why PE companies have increased reliance on experts to improve operations. Read more in Bloomberg News. 📰 Read it here ➡ https://lnkd.in/egC4k89N #PrivateEquity #Bloomberg #OperationalImprovements #ValueCreation #TBMConsulting

High interest rate headwinds have been a significant challenge for many PE owned portfolio companies. While the recent rate cut helps, challenges related to these higher rates will not soon retreat. Layan Odeh has just published a timely and meaningful article in Bloomberg about this issue. We appreciate being able to contribute to a part of it. If you are unable to access below, here is another link to the article: https://lnkd.in/g4ePX4rC #privateequity #middlemarket

I go thru' investors call transcript of companies including some of my stock holding. I have always observed that small and medium sized listed companies do a pathetic job when they answer the questions of investors. Mostly this I have observed in promoter run companies. Either they are over confident or under prepared that makes them reply casually without understanding the impact. Communication is the key and I hope the Board of Directors read such transcripts and correct such promoters. Investors are smart enough not to ignore irresponsible answers and they quickly sell and move one. Whereas many retail investors don't read the transcripts and continue to hold the shares only to regret later Yesterday I read one of my own portfolio company's transcript and within 5 minutes exited my holding. #investors #communication

Explore the benefits of selling to a Private Equity Firm with our latest article. Discover how they can provide capital, expertise, and new growth opportunities to take your manufacturing business to the next level. https://zurl.co/C79L #manufacturing #privateequity #businessgrowth

Private Equity's Surge: Transforming Finance 🌟 Private equity investments have surged, reshaping finance in profound ways. This isn't just a trend but a shift redefining business operations. 📈 Private equity firms now drive innovation and efficiency, helping businesses scale and become sustainable. At ZETA CONSULTING, we've seen the impact of strategic executive placements firsthand. In 2023, US private equity deals hit a record $1.2 trillion, fostering a dynamic and competitive market. The result? A robust financial ecosystem benefiting everyone. What are your thoughts on the rise of private equity? Share your insights in the comments or visit www.zetaconsulting.net. #PrivateEquity #Finance #Investment