
Alejandro Alvarez, Partner: Operations Performance at Ayming UK, offers four impacts and effects of the events of 2020 on the private equity value-creation process.
"In our experience, when working with private equity firms and their portfolio businesses, robust VCPs that address multiple areas of the business to deliver sustainable improvements are the foundation for success. But what happens when, across the world, several facts and underlying assumptions that were taken into consideration to build VCPs drastically change within a matter of weeks? It is all relative, and indeed the answer depends on many different parameters, such as the business sector, capability to adapt and innovate, and supply chain resilience, among others. We could all come up with a long list of impacts and effects that 2020 will have on the PE value-creation process, in different ways and depths for every business, but I'd like to highlight four."