Private equity must rethink – those who only buy will lose!

The private equity sector shows early signs of recovery. In 2024, the global buyout deal volume increased by 37% to 602 billion US dollars. Particularly notable is the development in the DACH region (Germany, Austria, Switzerland): Here, the number of PE transactions increased by 93%. (Bain Global PE Report 2025)

Despite these positive developments, it cannot yet be said that a recovery has taken place. The fundamental challenges remain: Rising interest rates, economic uncertainties, and stricter regulatory requirements have fundamentally changed the framework conditions for private equity firms. High valuations, rising interest rates, and limited efficiency potentials make it increasingly difficult to achieve attractive returns merely through financial leverage. Anyone who still believes that restructuring, cost reductions, and operational optimizations alone are sufficient to create sustainable value will soon be caught up by reality.

The old playbook is no longer effective

Private equity firms face a fundamental challenge: they need to create value that goes beyond short-term financial optimization. Simple restructurings are no longer sufficient. Value enhancement requires genuine entrepreneurial innovation – either through new business models, business model expansion, or through the radical digitalization of existing structures. The targeted use of artificial intelligence (AI) can be a decisive factor in automating processes, enabling data-driven decisions, and identifying new market opportunities. However, many PE firms struggle with exactly this transformation.

The challenges of traditional value creation

Many PE firms enter the value creation phase without direct operational support. The result: lengthy planning phases and measures that often remain largely theoretical. This approach carries risks:

• Superficial analyses: External evaluations rarely capture the internal potentials and operational challenges of a company.

• Delayed implementation: Long lead times hinder rapid value growth.

• Lack of resources: Without direct operational support, many promising measures are not implemented, leading to disappointing results.

• Inadequate digital expertise: Many PE firms lack experienced digital partners with sufficient authority to challenge traditional business models or to sustainably drive transformation potentials.

Why traditional value creation plans fail

Most PE firms rely on classic value enhancement plans (VCPs) after acquisition. These usually contain a mix of cost reductions, revenue increases, and targeted process improvements. But often, they are nothing more than a glorified to-do board – without strategic coherence, without integrated implementation, without genuine transformation. The result: measures stagnate, management teams are overwhelmed, and the hoped-for value increase does not materialize.

A central reason for this failure is that VCPs are often developed by consultants who are not responsible for implementation. They create extensive presentations with theoretical recommendations – but when it comes to specific implementation, they are no longer present. Portfolio CEOs and leadership teams are left on their own, with ambitious goals but without the right setup to achieve them.

Our approach: sprint-based, implementation-focused, results-oriented

Here, we engage with our PE Sprint offering. Our approach combines rapid analysis, clear prioritization, and agile implementation – to not only plan value enhancement but to actually realize it. In three targeted sprints, we accelerate transformation and create sustainable value:

1. Definition sprint (2–4 weeks) – We analyze together with portfolio management the most important value drivers, identify the biggest opportunities – especially in the area of digital transformation and the use of AI – and establish a data-based decision-making foundation.

2. Full potential plan sprint (6–8 weeks) – Based on the identified levers, we develop a prioritized operational implementation plan with measurable KPIs that integrate digital initiatives and AI-supported processes.

3. Execution sprint (9–12 months) – We accompany the implementation, provide the right experts, and take responsibility for the realization of the measures – for sustainable value enhancement, not just PowerPoint slides.

   
   

Bridgemaker PE Value Creation - Our approach to accelerated corporate value enhancement

Value enhancement beyond traditional levers

Our past projects show: Those who take new paths create genuine added value. Three examples:

• Entering new markets: For a cybersecurity provider, we developed a digital sales channel that generated over 1,000 new customers in six months and significantly increased the margin.

• AI-supported efficiency enhancement: An ESG software provider was able to shorten its processes by 70% through the implementation of AI-supported reporting and expand the addressable market by 30 times – from 500 to 15,000 potential customers.

• Radical digitalization with direct ROI: In a classic growth case, we were able to generate over 100 qualified leads per month through the implementation of a scalable online sales tool and achieve an 11.6 times ROI by the end of the project.

Private equity needs genuine entrepreneurial transformation

The market is moving faster than ever – and PE firms must adapt. Those who limit themselves to buying companies and relying on classic optimization measures will have difficulty achieving attractive returns. The future belongs to those who not only master financial but also operational and strategic excellence.

💬 What are your experiences with VCPs, AI, and operational implementation in the PE context? 📩 Write to me – I look forward to the exchange.