Value Creation Levers Private Equity Can Pull Before Day 100

Phase Zero is TBM’s four-step diagnostic for private equity portfolio companies. In a few weeks it identifies and sizes the value creation levers in a business: operational improvement, revenue growth, cost optimisation and margin expansion. The result is a fact-based roadmap, ready before the 100-day plan commits the company to a direction.

Most 100-day plans are written before anyone has properly tested what’s driving performance. Phase Zero fills that gap. It runs first, so the plan starts from evidence and not from assumptions.

The problem is visibility, not value creation

In the first half of 2026, manufacturing deal value was at its lowest level for any first half since 2020. With exits slower, returns increasingly have to come from inside the portfolio company.

Even so, many 100-day plans still rest on instinct. When one of those instincts turns out to be wrong, the business loses weeks of its hold period chasing it. Phase Zero replaces that guesswork with a ranked list of levers, each with a dollar value attached, so the team knows where to act before the plan is written.

“You don’t need three months to test a hunch about what’s broken.”

What the playbook covers

A four-step diagnostic. Scope and align, issue a structured data request, carry out financial and operational analysis, then validate on site. Together these steps build the fact base and set the order of priority.
The evidence behind it. Most PE value creation comes from operational improvement, not leverage. Margin expansion and cost optimisation then build on those gains.
Three case studies. A diagnostic across a 16-plant network that identified around $4.8m. A single-plant diagnostic that found $4.9m in two weeks. A capacity diagnostic that supported a successful exit.
Levers by industry. Separate operational, revenue and cost routes for engineer-to-order, process and service businesses.
A 30/60/90-day rhythm. Findings become tracked results within the first year, and each lever has a named leader accountable for it.

Why TBM

Many advisers hand over a report and leave the portfolio company’s team to deliver it. TBM stays for the diagnosis and the implementation. We connect operational improvement to revenue growth, cost optimisation and margin expansion, and measure progress against the 100-day milestones. Learn more about TBM’s Private Equity Practice.

Complete the form to the right to access the full Phase Zero playbook to see how a data-driven private equity 100-day plan, anchored in the proven value creation levers private equity applies, accelerates results and de-risks execution from day one.

Frequently Asked Questions

What are the main value creation levers in private equity?

Operational improvement, revenue growth, cost optimisation and margin expansion. If they’re sized early, they give the 100-day plan and the wider hold-period strategy a firm basis.

How do operational improvements create value?

They increase throughput, cut waste, shorten cycle times and turn working capital faster. Phase Zero finds where the biggest returns are, so you can measure results at 30, 60 and 90 days.

What part does revenue growth play?

Growth comes from pricing discipline, mix, cross-sell and upsell, and channel expansion. It compounds operational gains by pushing more volume through a leaner cost base. Phase Zero separates price, volume, and mix effects, so commercial targets match what the plants can actually deliver.

How does cost optimization drive value?

Savings come from sourcing, footprint, SG&A and automation. They protect margin when demand fluctuates and free up cash. Phase Zero sizes the savings by category and separates quick wins from longer-term structural change.

What is margin expansion, and why does it matter?

It is the spread between the value you deliver and what it costs to serve. It comes from price discipline, mix management, and cost control working together. Every point of margin compounds into enterprise value. Phase Zero ties margin drivers directly to operational and commercial initiatives, so the 100-day plan turns analysis into execution.