How should private equity investors approach Plan B?
Mindset Change – Market Value Creation vs. Business Value Creation
Private equity investors need to take on board a mindset change from financial engineering to business operations. The investors need to surround themselves with the right business professionals that will focus on creating value from the business. Experienced entrepreneurs, skilled business professional, and/or industry captains who have “been-there-done that” and are the real deal is what is needed going forward, not MBA analysts. These investments are businesses and they need to be addressed, accordingly. This is even more of a fact when every decision is challenged by uncertain macro economic factors.
It is vital for PE firms to explore the full business-led value creating potential of their business portfolio and look to bring in the necessary expertise that will adapt quickly to changing circumstances and to determine what the full potential should be.