The historical leveraged buyout/financial engineering approach no longer works with B2C companies like it once did. PE investors are expected to fundamentally transform the value of those businesses through add-on acquisitions, alongside executives with tangible turnaround experience in today’s market. PE firms that don’t have transformational plans laid out ahead of time are having trouble winning auctions.
Note: This column was originally published in The Lead Left.
For more data and analysis, check out our 2Q 2017 US PE Middle Market Report.