Guillaume Mounier’s Post

😲 📈 Operating improvements drive 45% of value creation!!!! 🎯 It is imperative that #PrivateEquityFirms hire right at the fund level when building out / enhancing their value creation teams. 🏢 Second to that will be the hiring across the portfolio companies' executive leadership team to ensure the value creation plans / playbooks can be implemented seamlessly to ensure they achieve the investment thesis. Thank you for sharing, Guillaume Mounier. #PrivateEquity #ValueCreation #Leadership #Strategy #InvestmentStrategies #OperationalExcellence #InnovativeLeadership #StrategicGrowth #PrivateEquitySuccess #BusinessSynergy #ValueDrivenInvesting

Interesting read about Top M&A trends in 2024 as per McKinsey & Company report: "To get ready for what could be a wave of transactions in 2024, companies can take important steps now: — Re-evaluate M&A themes and update strategy, invest in capabilities and assets that will effectively evolve the portfolio, and consider divestitures as actively as acquisitions. — Shift M&A themes to mitigate increased geopolitical risks—for example, by emphasizing localization rather than geographic expansion, targeting sectors with stronger market outlooks, investing in vertical integration, and strengthening supply chain resiliency. — Establish a higher bar for value creation to offset higher costs of capital, and think broadly about different kinds of synergies—not just cost or revenue-bound but also capex; not only combinational, but also transformational synergies. — Pursue #partnerships and #alternative_deal_structures —such as #JVs, #alliances, and #public_market_buyouts —to offset the reduced availability of debt financing. — Use alternative structures to reduce transaction risks, such as milestone payments."

Summary of the content from the article "Get your story straight" McKinsey. Before pursuing an initial public offering (IPO), companies should develop a clear narrative or "story" to share with investors about why they should invest in the company. According to a survey by McKinsey, 73% of institutional investors indicated that an unattractive story posed the greatest risk to an IPO's success. Additionally, the top components of an effective story, as ranked by investors, were the track record of senior management (69%) and the company's long-term plan for creating value (65%). Developing a compelling equity story that highlights management credibility and future growth strategies is therefore crucial for getting investors on board and ensuring IPO success. The full article provides additional guidance on crafting an impactful narrative to engage long-term institutional shareholders.

𝐌𝐢𝐝-𝐦𝐚𝐫𝐤𝐞𝐭 𝐩𝐫𝐢𝐯𝐚𝐭𝐞 𝐞𝐪𝐮𝐢𝐭𝐲 𝐟𝐢𝐫𝐦𝐬 𝐭𝐨𝐝𝐚𝐲 𝐚𝐫𝐞 𝐟𝐚𝐜𝐢𝐧𝐠 𝐚 𝐜𝐫𝐢𝐭𝐢𝐜𝐚𝐥 𝐪𝐮𝐞𝐬𝐭𝐢𝐨𝐧: How to successfully execute complex M&A deals while navigating uncertainties and leveraging technology-powered agility in dealmaking. A Gartner study highlights that businesses driven by a renewed emphasis on technology can 𝐦𝐚𝐤𝐞 𝐚 𝐬𝐢𝐠𝐧𝐢𝐟𝐢𝐜𝐚𝐧𝐭 𝐜𝐨𝐦𝐞𝐛𝐚𝐜𝐤 𝐢𝐧 𝐭𝐡𝐞 𝐌&𝐀 𝐚𝐧𝐝 𝐃𝐢𝐯𝐞𝐬𝐭𝐢𝐭𝐮𝐫𝐞𝐬 𝐦𝐚𝐫𝐤𝐞𝐭 in 2024 despite macroeconomic and regulatory challenges. The right-fit technology strategy combined with relevant systems and tools helps optimize every step - from streamlining processes and enhancing due diligence to facilitating seamless integration and executing divestitures. For instance, Cloud-based platforms simplify communication, collaboration, and data sharing, accelerating program execution while helping with timely decision-making. 𝐓𝐡𝐢𝐬 𝐞𝐧𝐬𝐮𝐫𝐞𝐬 𝐦𝐢𝐧𝐢𝐦𝐢𝐳𝐢𝐧𝐠 𝐝𝐢𝐬𝐫𝐮𝐩𝐭𝐢𝐨𝐧 𝐚𝐧𝐝 𝐦𝐚𝐱𝐢𝐦𝐢𝐳𝐢𝐧𝐠 𝐬𝐲𝐧𝐞𝐫𝐠𝐲 𝐫𝐞𝐚𝐥𝐢𝐳𝐚𝐭𝐢𝐨𝐧. By embracing technology, mid-market PE firms can gain the needed confidence in navigating the M&A landscape with greater agility, efficiency, and insight. 𝐒𝐜𝐡𝐞𝐝𝐮𝐥𝐞 𝐚 𝐜𝐨𝐧𝐬𝐮𝐥𝐭𝐚𝐭𝐢𝐨𝐧 𝐰𝐢𝐭𝐡 𝐨𝐮𝐫 𝐞𝐱𝐩𝐞𝐫𝐭𝐬 𝐭𝐨 𝐬𝐞𝐞 𝐡𝐨𝐰 𝐭𝐞𝐜𝐡𝐧𝐨𝐥𝐨𝐠𝐲 𝐜𝐚𝐧 𝐡𝐞𝐥𝐩 𝐲𝐨𝐮𝐫 𝐌&𝐀 𝐚𝐧𝐝 𝐃𝐢𝐯𝐞𝐬𝐭𝐢𝐭𝐮𝐫𝐞 𝐬𝐭𝐫𝐚𝐭𝐞𝐠𝐲 in 2024. #mergersandacquisitions #divestitures #techstrategy #valuerealization #performanceimprovement

It's been a tough year for the global M&A market, but what can we expect for 2024? Read this perspective from my colleague J. Neely who offers up 3 trends #dealmakers should watch for in the coming year. What are you seeing in your market? #MergersAndAcquisitions Accenture  

How do Private Equity firms get the most value from their portfolio companies? One way is to partner with a technology leader on an interim or fractional basis who can fuel the next-level of value. Read how: https://lnkd.in/gJUEt-Ny #management #privateequity #manufacturing #technology #strategy #ceo

How do Private Equity firms get the most value from their portfolio companies? One way is to partner with a technology leader on an interim or fractional basis who can fuel the next-level of value. Read how: https://lnkd.in/gc-qchxP #management #privateequity #manufacturing #technology #strategy #ceo

There are several desirable outcomes of investments out there. IPO is the most famed and shows the magnificent teamwork that all stakeholders did. Before getting there, you need to find the investors to back you up, especially in current downturns. How does one get those investors, and what matters to them? According to this article by McKinsey , the significant element is a cohesive equity story. And this is how you built it for long-term strategic investor relations: First and foremost, avoid over-reliance on narrative-driven content or irrelevant information. 1.    Key Elements: /Clear company overview with key milestones. /Market analysis with precise and clear data. /Competitive position and differentiating capabilities. /Concise strategy based on strengths and market response. /Historical and expected financials with long-term targets. 2.    Company-Specific Details: /Emphasize positioning, capabilities, and value creation. /Focus on two to five key value drivers. /Explain synergies between business divisions. 3.    Broader Context: /Highlight industry trends and growth trajectory. /For public companies, focus on strategic shifts. 4.    Addressing Challenges: /Be transparent about poor performance and actions taken. for full article please follow https://lnkd.in/g4QFZ_Az

With volatile markets and rising inflation, investors are turning to hard assets, driving deal momentum in the Industrials & Services sector throughout 2024. Corporate divestments are expected to resume, with carve-outs and corporate separations becoming a growing trend in the deal market. This quarter's edition of the Australian Industrials & Services (I&S) Deals Digest delves into the topic of carve-outs and corporate separations, demystifying the process and highlighting ways to maximize deal value while identifying potential pitfalls – a recent case study showcases PwC's integrated offering. This edition also provides coverage of recently completed or announced M&A deals, relevant news articles, and topical matters. Read the Digest here: https://bit.ly/3QJb6tu #PwCDealsAU #Deals #Industrials

How do Private Equity firms get the most value from their portfolio companies? One way is to partner with a technology leader on an interim or fractional basis who can fuel the next-level of value. Read how: https://lnkd.in/gq5udjqd #management #privateequity #manufacturing #technology #strategy #ceo