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Part II: The Investment Process

Chapter 10

Value Creation During Ownership

The ownership period tests whether the acquisition thesis can become a practical operating program. A sponsor may have identified pricing opportunities, procurement savings, expansion, or acquisitions. Each requires leadership, resources, time, and a method of measuring results.

The starting point is an agreed baseline. The board and management need a common view of earnings, cash flow, customers, organizational capacity, and outstanding obligations. Without it, projected improvements can be counted against a moving denominator, and the investment case becomes difficult to evaluate.

The preview ends here. The full chapter is in the book.

In this chapter

  1. 10.1A plan with owners and dependencies
  2. 10.2Acquisitions as an operating strategy
  3. 10.3Monitoring without confusing activity and results