Global manufacturing and private equity are rapidly changing, and companies are having to undergo strategic operational transformation and redesign their entire business processes, which, of course, means opportunities abound for consultants. Consulting caught up with Fernando Assets, CEO and Co-Founder of operations firm Argo Consulting, which specializes in industry and private equity, to talk about some big trends and changes in private equity and manufacturing.
Consulting: What's happening in the world of private equity?
Assens: In my opinion the biggest change in the private equity industry has been the shift in focus from financial engineering to operational improvement. In the early days of private equity, firms focused mostly on adding leverage, optimizing capital structure, and minimizing taxes. But those were the days when PE firms could acquire a mid-market firm for 5-8 multiples of EBITDA. Today, with valuations frequently reaching 10-12 multiples, operational improvement has become a fundamental piece of value creation.
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