What Does a Private Equity Consultant Look For - Profit Tip #3 of 99
Most owners look at their business with emotion.
Investors do not.
They look at one thing. Where the profit is trapped.
Here is what a private equity consultant looks for:
1. Gross profit
If gross profit is weak everything feels heavy. This is always the first place they look and the first thing they fix.
2. Margin leaks
Underpriced work. Rework. Overruns. Unbilled time. Anything that quietly eats cash.
3. Client mix
Some clients lift your business. Some drain your time and energy. Some should not be clients anymore.
4. Systems
A business built on talent eventually breaks. A business built on systems can grow.
5. Demand engine
If the pipeline relies on you the ceiling is low. If it runs without you the business is worth more.
6. Speed
Speed to quote. Speed to deliver. Speed to invoice. Fast creates margin. Slow burns it.
None of this is complicated.
It is just honest.
Start with gross profit.
Find the leaks.
Strengthen your client mix.
Tighten your systems.
Build a reliable pipeline.
Increase speed.
Profit follows.