Lessons from Private Equity Any Company Can Use

Private equity firms are snapping up brand-name companies and assembling portfolios that make them immense global conglomerates. They're often able to maximize investor value far more successfully than traditional public companies.

How do PE firms become such powerhouses? Learn how, in Private Equity Lessons You Cannot Afford to Ignore. Bain chairman Orit Gadiesh and partner Hugh MacArthur use the concise, actionable format of a memo to lay out the five disciplines that PE firms use to attain their edge:

Invest with a thesis using a specific, appropriate 3-5-year goal

Create a blueprint for change--a road map for initiatives that will generate the most value for your company within that time frame

Measure only what matters--such as cash, key market intelligence, and critical operating data

Hire, motivate, and retain hungry managers--people who think like owners

Make equity sweat--by making cash scarce, and forcing managers to redeploy underperforming capital in productive directions



This is the PE formulate for unleashing a company's true potential.

From our new Memo to the CEO series-- solutions-focused advice from today's leading practitioners.

The Wall Street Journal

. . . the authors argue rightly that the very best private-equity firms . . . have transformed the world's financial markets.

Orit Gadiesh is the chairman of Bain & Company and an expert on management and corporate strategy.

Hugh MacArthur is a partner at Bain & Company and the leader of the firm's Global Private Equity practice.