Evaluation Framework
Three lenses applied before any private equity opportunity proceeds to committee-level authorization.
Entry Valuation
Entry multiple discipline is treated as primary risk management. Sensitivity analysis across revenue scenarios, margin compression, and exit multiple compression is mandatory before authorization.
- EV/EBITDA and EV/Revenue multiple stress tests
- Downside scenario to equity value bridge
- Comparable transaction and public market anchoring
Value Creation
Operational improvement thesis is codified before close. Revenue acceleration, margin expansion, and management upgrade pathways are validated with implementation timelines and accountability owners.
- 100-day operational plan with KPI owners
- Management retention and incentive alignment
- Add-on acquisition pipeline mapping
Exit Optionality
Multiple exit scenarios — strategic sale, secondary buyout, IPO — are mapped from day one. Timing optionality and exit-path readiness are monitored throughout the hold period.
- Strategic buyer universe mapping
- Secondary market and co-investor liquidity windows
- IPO readiness assessment for larger platforms