The survey explores shifting trends in specialization, costly surprises to weigh pre-deal, the rise of due diligence, evolving hold-and-grow strategies and factors to consider in optimizing an exit. According to the survey, respondents reported that management reporting limitations were the largest post-closing surprise (47 percent), followed closely by unforeseen capital expenditure needs (44 percent) and unforeseen working capital requirements (42 percent).
Delving deeper into the management of portfolios, the survey found general partners most frequently believe taking a hands-on approach adds the greatest top-line growth when they get involved in increasing operational efficiency, optimizing pricing strategies and organizational structure.
Sell-side due diligence is a rising best practice to optimize value at exit, with one-third of respondents indicating they perform sell-side due diligence more frequently now than five years ago.
A free copy of “Managing Portfolio Investments Survey” can be downloaded by clicking HERE.