Recalibrate Private Equity Value Creation Plans Post COVID

Three critical steps every PE firm can take now to realign value creation plans with current market conditions.

Some PE firms are making the mistake of believing that their deal parameters automatically have to change just because everything else has in the wake of COVID-19. But firms don’t have to lower expectations for their portcos or extend their timelines out of hand.

In the article, the TBM value creation experts—Gary Hoover, John Ferguson, and Jeff Klapp—share insight and examples from the PE firms TBM is helping right now. By understanding and optimizing their current value creation opportunities, PE firms can continue to achieve their goals and find ways to thrive in a marketplace that has been reshaped by the pandemic. They must, however, take a fresh look at the value creation opportunity for each portfolio company

3 critical questions in mind:

What and where are the best opportunities for value creation for this business in this industry right now?
How must we adjust the value creation levers we are pulling to capture those opportunities?
What new risks need to be factored into the equation?

Complete the form below to download your copy of “Rethinking Your Value Creation Playbook Post-COVID-19: Lowering Expectations or Increasing the Holding Period Aren’t the Only Options for PE Firms” for a three-step guideline to re-calibrating your portfolio companies’ value creation plans.

Frequently Asked Questions

Why do private equity value creation plans need to be recalibrated post‑COVID?

The article explains that value creation plans built on pre‑COVID assumptions no longer reflect operational reality. Changes in demand patterns, labor availability, supply chain reliability, and cost structures have altered how businesses perform. Private equity firms must recalibrate plans to account for ongoing volatility and execution risk rather than assuming a return to stable, predictable conditions.

What aspects of value creation plans are most affected in the post‑COVID environment?

Value creation plans are most affected in areas tied to execution capability, workforce stability, and supply chain performance. The article highlights that growth initiatives often need to be reassessed, while productivity, resilience, and operational discipline have become more critical levers. Firms that rely solely on top‑line growth or financial engineering face greater risk if operational fundamentals are weak.

How can private equity firms strengthen value creation in the post‑COVID world?

Private equity firms can strengthen value creation by focusing on controllable operational improvements rather than external market tailwinds. The article emphasizes improving execution discipline, strengthening management systems, and building organizational capability early in the hold period. By grounding value creation plans in operational reality, firms increase speed to impact, reduce risk, and create more sustainable EBITDA growth despite continued uncertainty.

Meet the Expert

Jeff Klapp

Managing Director, Business DevelopmentEmail Jeff

Jeff works with private equity firms, their portfolio companies, and investment partners to help them learn more about TBM, our services, and expertise. He has deep experience in private equity pre- and post-acquisition operational and supply chain value creation planning and realization in manufacturing, distribution, and service organizations.