As part of their 2019 Annual US PE Breakdown report, Pitchbook interviewed Terry Oblander, our Chief Growth Officer, on how to maintain profit growth in uncertain markets.
As you prioritize pre-transaction improvement initiatives, remember Warren Buffet’s statement:
“The single most important decision in evaluating a business is pricing power.”
This is when you need to demonstrate pricing power and a track record of EBITDA improvement, and to showcase future growth opportunities to maximize exit value.
As competition for prime targets continues, execution prior to and post-close is as critical as ever. PitchBook and INSIGHT2PROFIT’s latest publication explores the key strategies private equity dealmakers are using to differentiate their approaches for swifter execution and greater certainty in results.
The US dealmaking landscape and private equity deal makers have rarely been as competitive as they are now. Price tags are near or at record highs and yet the dealmaking cycle continues apace. Ensuring your deal is worth it remains more critical than ever before. In a recent interview with PitchBook, we review strategies to ensure revenue and EBITDA growth in the costly current environment.
With fierce competition for prime assets and a flurry of Middle Market PE deals that put 2018 on pace for a record year1, both buyers and sellers are looking for any advantage. While the typical due diligence playbook includes financial, IT, employee, customer and market assessments, it ignores pricing analyses. Yet pricing diligence provides a unique advantage as it analyzes the strongest profit and value creation lever in any business…the power of pricing.
Striking the right balance between effective pricing strategies and company performance is often an issue because there are so many factors involved. With price being the most important lever impacting your bottom line, one major pricing mistake could risk your company’s profit potential.
When there’s a pricing problem at your company, you know it. Still, you struggle to pinpoint what, exactly, the problem is—and how to fix it.
One critical step towards gaining visibility into your pricing issues is something we like to call “price-down reporting.” In this article, we’ll talk about what that term means, and how to use it to your advantage.
This post was originally published on PricingBrew.
It may seem counter-intuitive to bring in an outside pricing partner when you already possess expertise in-house. However, with benefits ranging from access to leading pricing technology to insights into cross-industry best practices, the right pricing partner can help even experts magnify the impact they are able to make.
Strategic mergers and acquisitions can drive impressive growth. All too often, though, growing pains can get in the way of reaping the full benefits of the synergistic new organization. Poor data clarity is a common challenge, as two organizations struggle to blend their various ERP and other business intelligence systems into a unified structure.
From a pricing perspective, this lack of visibility raises serious concerns. A pricing manager’s overarching goal is to understand the new product mix in order to keep growing the already-strong business while improving weaker accounts. However, when data is stuck in siloes, it becomes difficult to identify all of the opportunities for economies of scale the merger or acquisition was intended to produce.
Fortunately, there are steps you can take to quickly consolidate your data into a single, cohesive view. These actionable insights will in turn empower you to drive strategic pricing improvements and move more customers to more profitable product lines, across the new organization for better price visibility.
When a company initiates a price increase, it’s common to fear pushback from the sales team. That pushback, however, can be overcome when you consider that pricing and commercial teams share a common goal: profitability. Most sales strategies are designed to drive more revenue and margin. Raising prices is, in fact, a driver for both outcomes.
When price changes are executed well, sales reps can actually make more money with less effort. The initial pushback from sales, however, can derail your best efforts. Here, we review three challenges associated with getting sales teams fired up about pricing and strategies to overcome them.