Why You Need Quality of Pricing for Your Next Transaction
This is when you need to demonstrate pricing power and a track record of EBITDA improvement, and to showcase future growth opportunities to maximize exit value.
By: Andy Fauver
Why You Need Quality of Pricing for Your Next Transaction
As you prioritize pre-transaction improvement initiatives, remember Warren Buffet’s statement:
“The single most important decision in evaluating a business is pricing power.”
This is when you need to demonstrate pricing power and a track record of EBITDA improvement, and to showcase future growth opportunities to maximize exit value.
So how do you substantiate margin impact to win over the skeptics and differentiate yourself? With INSIGHT2PROFIT’s Quality of PricingSM (QofPSM). Conducting a Quality of Pricing assessment gives you an unparalleled competitive advantage by:
- Quantifying historical EBITDA growth due to pricing and commercial improvement
- Identifying and prioritizing near-term opportunities to be realized pre-transaction
- Showcasing organizational change readiness and commitment to pricing excellence
- Laying out a longer-term EBITDA improvement roadmap for potential buyers
- Lending credibility and tangibility to proforma EBITDA adjustments in CIM
- Providing investment banks with detailed financial impact data and transaction support
Learn more about how Sell-Side Quality of Pricing drives valuation and elevates the marketing of PE-sponsored portfolio companies for successful transactions.
