Rising interest rates, higher financing costs and limited liquidity are putting downward pressure on private equity exit values. Buyout funds must deploy their entire value creation toolkit to maximise exit values and generate strong returns.

The final, critical pillar of value creation is the Equity Story. Funds should focus on this at least a year before launching an exit process. Equity story development moves beyond presenting the transformation and value creation achieved to date through initiatives including accelerated digitisation, M&A, talent acquisition and new markets. A strong equity story instead sells the future growth potential of the company – buyers’ main priority.

In this new landscape funds can collaborate with equity story specialists to help reshape the investment highlights, This involves hosting all-party workshops to define the forward-looking strategy and translating this into a compelling presentation and pitch. Investment and management teams must also be coached to deliver the revised equity story in a consistent, powerful way which resonates with potential acquirers.

Find out more about how to reshape and reinvigorate your Equity Story in our Self-Help Guide to Equity Story Techniques here