Re-calibrating Your Value Creation Plan for a Post-COVID-19 World

Three critical steps every PE firm can take now to realign value creation plans with current market conditions.

Some PE firms are making the mistake of believing that their deal parameters automatically have to change just because everything else has in the wake of COVID-19. But firms don’t have to lower expectations for their portcos or extend their timelines out of hand.

They must, however, take a fresh look at the value creation opportunity for each portfolio company, keeping three critical questions in mind:

1. What and where are the best opportunities for value creation for this business in this industry right now?
2. How must we adjust the value creation levers we are pulling to capture those opportunities?
3. What new risks need to be factored into the equation?

In the article, the TBM value creation experts—Gary Hoover, John Ferguson, Bob Brennan, John Wynne, and Jeff Klapp—share insight and examples from the PE firms TBM is helping right now. By understanding and optimizing their current value creation opportunities, PE firms can continue to achieve their goals and find ways to thrive in a marketplace that has been reshaped by the pandemic.