Negotiation, a skill with ancient roots, has significantly transformed within the business landscape, particularly in the ever-changing Private Equity (PE) arena. Throughout time, investors have honed an array of techniques and strategies to clinch the most favorable terms in their deals. Whether employing traditional tough negotiations or adopting more cooperative strategies, investors persistently strive for a competitive edge.
Private equity investors aim to enhance their portfolio companies by going beyond simply negotiating the best price. This involves excelling in negotiation, pinpointing avenues for growth, boosting operational efficiency, and fostering long-term value creation.
Mijael “Mike” Attias, an acknowledged authority in the Private Equity domain and head of Merak Group, has pinpointed three pivotal strategies that, from his perspective, are often overlooked by investors and have the potential to significantly enhance value in their transactions.
3 undervalued strategies that Mijael Attias says can transform your PE operations
Drawing from his extensive experience, Mijael Attias has pinpointed three essential strategies that can aid in reaching your objectives. These approaches emphasize not only optimizing financial gains but also cultivating more robust and sustainable enterprises.
ESG: more than a trend, a competitive advantage
In a world that is becoming ever more conscious of environmental and social issues, integrating ESG (environmental, social, and corporate governance) criteria into private equity practices is no longer merely an option—it’s a necessity. Mijael Attias asserts that companies with a robust dedication to sustainability not only draw a larger pool of investors but also exhibit greater resilience over time.
Incorporating ESG elements during the due diligence stage enables investors to identify concealed risks and areas for improvement that might be overlooked in conventional evaluations. Furthermore, by aiding acquired companies in adopting sustainable practices, Private Equity funds can create a beneficial impact on society while simultaneously enhancing the value of their investments.
Artificial Intelligence: A Partner in Due Diligence
Artificial intelligence (AI) is transforming the execution of PE operations. Through the use of sophisticated algorithms on extensive data collections, AI can uncover patterns and correlations that might elude human observation.
Mijael Attias emphasizes that this technological tool not only streamlines the due diligence process but also delivers more comprehensive and precise insights into prospective companies. It empowers investors to conduct more intricate risk assessments, evaluate the operational capabilities of management teams, and make more accurate forecasts regarding market trends.
Investing in post-transaction growth: the key to long-term success
Value creation in a PE deal doesn’t conclude with the acquisition. After the transaction is finalized, it’s vital to assist the acquired company in executing a strategic plan aimed at meeting the predefined growth targets.
Frequently, acquired companies hold latent growth potential. By channeling investments into new product development, market expansion, and enhancements in operational efficiency, private equity funds can realize substantially higher returns compared to merely optimizing the capital structure.
Mijael Attias Revolutionized Private Equity
Attias highlights three pivotal strategies—integrating ESG criteria, leveraging AI, and investing in post-transaction growth—that equip private equity investors with essential competitive advantages for success. By embracing a more strategic and proactive approach, these funds can enhance value and simultaneously create a positive impact on society.
Gaining insights from leading figures in the financial sector, like Mijael Attias, is exceptionally beneficial for investors. His expertise and market reputation offer strategic tools that can revolutionize your investment strategies. Utilizing this wisdom enables you to refine your decisions and enhance the performance of your private equity funds.
