Perspective: Rebuilding Lost Value

Rebuilding Lost Value

One of the most fundamental objectives of the Private Equity process is to focus on rebuilding lost value in companies and enterprises.

Sometimes value is diminished as a company passes from one generation to another, sometimes technological or business model disruption places strain on an owner’s willingness to change and respond.

In all situations, I - and my colleagues in the turnaround and improvement business seek to rebuild the value lost through these transitions and return companies to profitable, sustainable growth.

We bring our deep and complex toolkits to companies facing these challenges, we work to turn them around, and then we eventually exit through trade, private or public sale. Although we seek to deliver lasting and fundamental impact, we don't typically seek to build industrial holding companies.

Invest for Value

"Corporate turnarounds are among the most intriguing of investment opportunities: they offer both the potential of market-beating performance and the satisfaction that comes with backing an underdog and then seeing it prevail—of finding value where others did not."

I love Olstein's view, and fully agree that value investing at its heart looks at the fundamentals of how a specific company is structured, and how it can build a competitive position in a challenging market.

The core of the business, the strength of the balance sheet, the accuracy and completeness of accounting, an open assessment of what went wrong, and a realistic roadmap of how to put it right are the DNA of successful value investments.