JOURNAL ARTICLE

What Every Company Can Learn from Private Equity.

  • Published In: Harvard Business Review, 2025, v. 103, n. 6. P. 82 1 of 3

  • Database: Business Source Ultimate 2 of 3

  • Authored By: Capozzi, Marla; Ghai, Sacha; Gompers, Paul; Kaplan, Steven N.; Kelleher, John; Mukharlyamov, Vladimir 3 of 3

Abstract

The article focuses on six key practices used by private-equity-backed (PE-backed) companies to consistently achieve superior financial and operational performance compared to public or family-owned peers. These practices include conducting ongoing full-potential due diligence, building management teams aligned with value-creation goals, applying "clean-sheet" labor strategies to enhance productivity, eliminating unprofitable revenue streams, executing transformation plans with detailed accountability, and treating leadership time as a critical resource. Research and experience indicate that these methods, while rooted in the PE ownership model, can be adapted by leaders across various sectors to accelerate growth, improve efficiency, and strengthen long-term value creation. The article emphasizes that adopting these disciplined approaches can help organizations overcome common barriers to transformation and deliver measurable improvements in performance.

Additional Information

  • Source:Harvard Business Review. 2025/11, Vol. 103, Issue 6, p82
  • Document Type:Article
  • Subject Area:Business and Management
  • Publication Date:2025
  • ISSN:0017-8012
  • Accession Number:188661123
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