#38 Operational improvement or financial engineering – what truly drives value in Private Equity today?

Shownotes

Operational improvement or financial engineering – what truly drives value in Private Equity today?

Many still believe that a clean financing structure and some multiple arbitrage are enough to unlock value in PE.

Wrong.

In the latest episode of "Mendel talks Finance," I speak with Natalia Meissner about the real engine behind value creation in the PE space - and what that means for today’s CFOs.

What we discuss is a practical map for finance leaders in PE-backed companies:

▶️ Operational excellence is non-negotiable ↳ Whether it’s growth, buyout, or turnaround—real value is created through performance, not tricks.

▶️ The evolving role of the CFO ↳ CFOs are becoming true Value Creation Leaders:  • Strategic partners in growth  • Performance drivers in buyouts  • Survival architects in turnarounds

▶️ Cash is king - and the only real currency ↳ Regardless of the deal type, liquidity is the benchmark. From runway extension to working capital and aggressive cash control—if you fail here, you fail altogether.

And here's what most people overlook:

There are two parallel worlds in any PE deal:

▶️ The investor world of IRRs and MoMs ▶️ The operational world of EBITDA and cash flow

If they’re not aligned, the deal is at risk.

My takeaway?

The best CFOs don’t just translate numbers - they connect entire worlds.

Curious how to position yourself as a CFO in the PE environment?

Tune in to the latest episode of "Mendel talks Finance."