Private Equity Post Acquisition Operating Value Added (PAOVA) Best Practice

The essence of private equity investing is to be a better owner than the seller. The best way to be a better owner is to be better equipped to grow the long-term earnings of the business they have acquired. We refer to this as Post Acquisition Operating Value Added or PAOVA.

It has been our goal, since our founding, to be deep experts on a private equity firm’s ability to add value to their portfolio companies. This focus is a natural extension of our previous careers executing “first 100-day plans,” “full-potential plans,” and other tools on behalf of our PE firm clients while working in Bain & Company’s PE consulting practice. With every new due diligence effort on any given PE firm here at Partners Capital, we gain greater knowledge about the best practices found inside those firms who have demonstrated the greatest ability to improve company management’s own ability to grow earnings.

This best practices manual was written to arm our private equity team with the tools to perform powerful due diligence, but also is made available to some of the firms we are evaluating or investing with, in hopes that those PE GPs can learn more about their own craft. We also hope this differentiates us from other LPs by being value added to the GPs value addition capabilities.

Please contact Partners Capital to request a copy of the research material.