Underwriting to a Growth Thesis: The 4 Quadrants of Value Creation

16 Jan 21

Mike Hoffman, SBI Chief Operating Officer and Private Equity Veteran, joins us to answer top-of-mind questions about the state of Private Equity.

While every industry has been impacted by the ongoing pandemic, private equity professionals have had to unpack an entirely different set of challenges trying to buy and sell in this environment.

On today's show, Mike Hoffman, SBI Chief Operating Officer and Private Equity Veteran, joins us to share how PE firms are validating investment theses centered on accelerating organic growth.

Click here for the full podcast version of this interview.

Navigating PE Hurdles

  1. The current state of Private Equity. minute 1:45
  2. Understanding the impact of your growth thesis. minute 7:13
  3. What sellers should consider in this market. minute 8:32
  4. Preparing your next investment committee deck. minute 12:15

Skip to minute 3:32 to hear Mike outline the four quadrants of value creation:

"More and more companies have to underwrite to a growth thesis in order to be successful. Some of the traditional levers aren't going to get them there are far as the returns, the money-on-money returns, and the internal rate of return that they need... they're all learning together because most firms have not underwritten historically to a growth thesis. And those really fall into four categories. Number one is how do we create sales and marketing operating leverage..."

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