10+ hours of podcasts, in 5 minutes.
3 quotes from 2 episodes on Private Equity Spotlight, each with a timestamped link to the source.
Private equity firms secure the highest enterprise value by exiting when future buyers have clear room to accelerate growth. Riccardo Basile observed that failed sale processes across 11 years at Permira never prevented the firm from selling businesses down the road.
The central task during a broken process is finding a viable way to exit the business.
“It's about finding a way of actually exiting the business…”
Enterprise value is highest when incoming buyers see a clear path to accelerate growth. Strategic buyers prioritize company quality, while private equity sponsors look for financial strength.
“The best EV that you gain from your companies by selling them, not when they're at a peak performance, when it's only downhill from then, but actually when there is clarity on how you can accelerate further for the next guys after, whether it's strategic because the quality is there or PE because the financials are there.”
From Why Selling at Peak Performance Destroys Private Equity Exits
Riccardo Basile saw multiple broken sales processes across 11 years at Permira. None of those failed transactions stopped the firm from executing successful sales down the road.
“…and I can think of a number of failed exits that have happened over the past 11 years that I've been at Permira, but none of them has then stopped us from selling the business two years, three years later.”
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