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How Private Equity is Protecting EBITDA Margins Amid Inflation and Uneven Demand

Private equity strategies are being stress-tested like never before.

June 10, 2025 • Estimated Reading Time: 3 minutes

Persistent inflation and uneven demand recovery across sectors are forcing firms to double down on protecting and expanding EBITDA margins — a theme that emerged clearly in our latest PE150 microsurvey.

Two weeks ago, we surveyed the market on the most important levers for value creation in today’s deals. The consensus was striking: Operational Efficiency and Cost Reduction, alongside Pricing and Commercial Strategy, are now viewed as the primary drivers of value. In a market where topline growth is unpredictable, optimizing the bottom line is paramount.

Our latest survey builds on that insight, asking:
“Where are you most focused today to protect or expand EBITDA margins?”

Bar chart showing 35.6% of respondents prioritizing Strategic Pricing and 28.8% focusing on Supply Chain Optimization to protect EBITDA.

Across 118 respondents — including PE Sponsors, M&A Development professionals, and Bankers — two priorities clearly stand out:

  • Strategic Pricing and Margin Analytics (35.6% of all respondents)

  • Supply Chain Optimization and Cost Control (28.8%)

Together, these account for over 64% of the market’s current focus, underscoring the emphasis on commercial excellence and operational discipline.

Interestingly, PE Sponsors exhibited a broader distribution of strategies: while 28.6% prioritize pricing, a notable 23.8% each are also leaning into SKU Rationalization/Product Mix Shifts and Operational Restructuring/Footprint Realignment. This reflects their need to drive structural changes across portfolios.

M&A Development professionals, by contrast, show the strongest alignment: nearly 77% are concentrated on pricing and supply chain levers, mirroring the broader market shift towards efficiency.

Bankers, who often influence deal positioning and readiness, are most bullish on pricing (41.7%), reinforcing its importance in current value narratives.

The takeaway? The market is moving from broad-based value creation to surgical margin protection and expansion. With inflationary pressures lingering and demand volatility persisting, mastering pricing and costs is no longer optional — it is the new core of private equity playbooks.

We’ll continue to track how these focus areas evolve as macro conditions shift. Stay tuned.