Measure value drivers like EBITDA Growth and Multiple Expansion in the Net Return domain, after the impact of GP Management Fees, Fund Expenses, and Carried Interest.
The right way set up exit metrics, given the various fund flows among buyers, sellers, lenders, bankers, and other parties.
More on entry adjustments, including rollover equity, seller notes, and acquired liabilities.
The right way to set up entry metrics, given transaction fees, expenses, working capital, and cash.
How private equity GPs tend to shift value creation from categories like Revenue Growth and EBITDA Growth into Multiple Expansion.
Calculate a deal’s Net MOIC and Net IRR from the Management Fee and Expense load on the entire portfolio.
Calculate Net Returns from the Gross MOIC and Gross IRR and estimates for Management Fee, Fund Expense, and Carried Interest.