Playbook Series - Jay Goldman on how to create a repeatable playbook for value creation at portfolio companies
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Welcome to the Private Equity Podcast Playbook Series. In this series, we'll dive deep into crucial private equity subjects and provide playbooks that you can use to grow your firm or portfolio company.
Introducing Jay Goldman
Jay Goldman is the Co-Founder and CEO of Sensei Labs, a Conductor used by the world's top organizations to orchestrate their most critical transformations. Jay and his team enable project management, collaboration, data tracking, and knowledge management that modern organizations need to be successful.
What You Will Learn
Sources of Value Creation in Private Equity
What it Means to Create Value in a Portfolio Company
How to Create Structure in Your Processes
[01:40] Value Creation in Private Equity
[03:51] What it Means to Create Value in Private Equity
[07:02] The First Step to Creating Value in an Asset
[09:15] How to Build a Value Creation Team
[12:15] Templates for an Effective Value Creation Plan
[15:00] How to Orchestrate a Value Creation Process
[20:35] Playbooks and the Benefits of Having a Repeatable Checklist
[23:43] Why Internal Communication is Crucial For Team Success
[26:54] Who Should Be In Charge of Value Creation?
[32:20] How to Build Out Checklists and Workflows
[35:19] Pros and Cons of Status Reporting
[36:55] Parting Thoughts
Value Creation in Private Equity
What does it mean to create value? If you're looking at it from an enterprise value perspective, you have an asset as part of our portfolio, and paid $10 million for it. Then your goal should be to exit it at a multiple, say 30, 40, or 50 million dollars. This means you'll have to create some enterprise value before exiting that asset. Jay adds that value creation is no longer associated with firing people. Much has changed, and now more PE firms are determined to create value. Today, PE firms are focused on building better businesses by growing their ability to produce revenue, built on acquisitions, geographic expansion, repricing, or new product lines. However, this is not to say that cost reduction is not essential because it will always be a factor in almost every value-creation plan. But it is now less emphasized than it was in the past.
How to Contact Jay
The Checklist Manifesto: How to Get Things Right by Atul Gawande
Thank you for tuning in!
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