Innovation is critical
Innovation is critical to value generation and the realization of a growth strategy.
The ability to generate value is fundamental to the success of a private equity backed portfolio company. The third theme in this year’s survey considers the areas of value generation that management teams are most focused on.
Value generation drivers
Awareness of the need to innovate to drive growth emerges clearly from the research. Broadening the service offering or introducing new products has increased in importance to be the key driver of value for private equity backed businesses and this is reinforced by the high level of importance attached to reputation and brand management. The speed at which companies are able to innovate is also perceived as critical, as other markets, specifically Asia, catch up and improve the quality of their products.