The Most Important Levers for Value Creation in Private Equity Deals: Survey Insights and Industry Perspectives

To better understand current industry sentiment, we conducted a proprietary survey asking: “What is currently the most important lever for value creation in private equity deals?” The results, presented in the chart below, reveal nuanced perspectives across different stakeholder groups.

Key Findings from the Survey

1. Operational Efficiency and Cost Reduction Remain Foundational
Across all respondents, 27% identified operational efficiency and cost reduction as the top lever for value creation. This focus is particularly pronounced among corporate development professionals (36%) and bankers (28%). In a climate where inflation and supply chain disruptions persist, optimizing operations and managing costs are viewed as essential to maintaining margins and competitiveness.

2. Pricing and Commercial Strategy Gains Prominence
Another 27% of all respondents selected pricing and commercial strategy as the most important lever. This lever is especially valued by corporate development professionals (36%) and bankers (33%), reflecting a growing emphasis on revenue optimization, pricing discipline, and commercial excellence as key drivers of EBITDA growth.

3. Digital Transformation and Tech Enablement
Digital transformation and technology enablement were cited by 23% of respondents, with PE sponsors (27%) and bankers (28%) showing particular interest. As digital disruption accelerates across industries, leveraging technology for process automation, data analytics, and customer engagement is becoming a significant source of competitive advantage.

4. Talent Upgrades and Leadership Alignment: The Consultant Perspective
Consultants overwhelmingly (42%) identified talent upgrades and leadership alignment as the most important lever, far more than any other group. This highlights a growing recognition that sustainable value creation is often rooted in strong leadership, effective governance, and a high-performance culture.

Implications for Private Equity Practitioners

• Holistic Value Creation: The survey results underscore the need for a balanced approach—combining operational rigor, commercial acumen, digital innovation, and strong leadership.

• Tailored Strategies: Different stakeholders bring unique perspectives; PE sponsors may lean into digital and operational levers, while consultants emphasize people and culture. Successful value creation strategies are tailored to the specific needs and context of each portfolio company.

• Evolving Playbook: As the PE environment evolves, so too must the value creation playbook. Firms that can integrate multiple levers—operational, commercial, digital, and talent—will be best positioned to outperform.

Conclusion

Value creation in private equity is a multifaceted challenge, requiring a blend of operational excellence, commercial insight, digital capability, and leadership strength. The survey results reflect a dynamic industry where no single lever dominates, but rather, success is built on the effective integration of several key drivers. As private equity continues to mature, the firms that adapt their value creation strategies to this new reality will lead the next wave of outperformance.