Insights

Value creation case studies, mapped across the investment lifecycle.

Seven articles follow the investment lifecycle from deal foundations to exit, built on real cases: the initial situation, what was actually done, and what the numbers said.

First published on LinkedIn by Meir Hakkak, Arrow Strategy.

Deal foundationsValue creation plan
Maximum impact leversRapid & reliable leversEnabling infrastructureFinancial structure
Positioning for exit
ReadDeal foundationsA thesis built on haircutting the vendor’s projections is not a thesis; it is an optimistic re-label. Commercial due diligence should challenge the deal, not just confirm its assumptions. And integration needs to be configured early, particularly in buy-and-builds. ReadValue creation planThe value creation plan is the bridge between what diligence found and what the portfolio company is actually going to do about it. A good plan is a sequenced set of commitments with named owners, measurable milestones, and consequences for missing them. ReadMaximum impact leversRevenue growth is amplified by operational leverage and multiple expansion, putting it at the centre of any equity story. It needs to be initiated early: the compounding effect takes time to build. ReadRapid & reliable leversWell-executed pricing changes flow straight to EBITDA. Detailed profitability analysis reveals where the business actually makes and loses money: the location is almost never where management expects it. ReadEnabling infrastructureUnusable data, leadership misaligned to the next phase, or KPIs that measure activity rather than outcomes will each cause a business to underperform, regardless of how good the value creation plan looks on paper. ReadFinancial structureFinancial structure was once a dominant driver of PE returns. It remains a must-have, but is no longer a differentiator. The value comes from an independent perspective across the full capital structure. ReadPositioning for exitWhat is the growth story for the next owner? Alongside delivering growth in the current hold, the owner needs to evidence the path to the next owner’s growth story, and buyers will pay a premium for it.
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