What Public Companies Can Learn from Private Equity: Pursue the Value Journey

This article provides important guidance based on the authors’ study of top value builders from both public and private equity-owned corporations. They observe that a wide range of effective application of value-building fundamentals among public and private companies exist. A disciplined approach to value building is the prime factor of differentiation between success and failure. As a result, both public companies and private equity portfolio companies have significant room for improvement. Four major steps of the value journey provide guidance to top value builders in good times and bad. TOPICS:Private equity, manager selection, technical analysis, performance measurement