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Current Environment - Investment Sector |
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As 2009 unfolds, the global economy remains in the midst of an unprecedented crisis, mired in a recession of historic proportions, and likely to last through year-end and beyond. Fallout from the sub-prime meltdown has severely constrained LBO debt availability and when available, terms are less favorable. Deal flow is down and very selective, thus intensifying competition among private equity firms vying for fewer opportunities, and the mid-market has seen significant compression in entry/exit transaction multiples. The resulting turmoil has caused a paradigm shift in financial leverage models, and is placing more emphasis and pressure on improving the operational performance of portfolio companies. This increased focus on operational leverage to produce superior returns requires: - A clear understanding of the deal’s “best value” creators,
- Prioritized and integrated value action plans,
- Experienced operating resources and proven processes,
- Stakeholder buy-in to a disciplined approach to execution.
rsr has successfully prevailed in an environment where operational excellence is paramount for over thirty years, consistently delivering “best value” solutions for the operational phase of many diverse investment opportunities. |