How do you create value for Portfolio Companies & PE?
When we talk about what we can do within your portfolio. Again, most of our engagements are directly with an individual company, we’re not doing a lot of cross portfolio things.
This briefly illustrates, if we can save someone a $1MM:
Not sure what your Exit Multiples are but we always use the 8x Multiple on exit so, if we’d save a $1MM that’s worth a $1MM of enterprise value when we sell which you know you know the math on this.
You know your carried interest is a $1.6MM on that and you’re returning $6.4MM to investors. And that’s just that’s just straight on the immediate EBITDA improvement.
If we’ve done that one two three four years before you actually sell it, you can use some of that cash flow cash flow that we’ve improved to pay down debt further increasing the value that you’ll get on exit.