ZiffyVolve

Insightschevron_rightPricing & Revenue

The Structural Value Playbook for Investor-Backed Enterprises

Financial engineering alone is no longer sufficient. We examine effective strategies for structural value creation.

Pricing & Revenuecalendar_today Oct 28, 2023schedule 5 min read

The Shift from Financial Engineering to Structural Value

In the current high-interest rate environment, the traditional private equity playbook of leverage and multiple arbitrage is under pressure. Returns must now be generated through genuine operational improvement and structural value creation.

This memorandum outlines the core pillars of ZiffyVolve's approach to delivering measurable EBITDA uplift within the first 100 days of ownership.

1. Pricing Power as a First-Mover Advantage

Many portfolio companies suffer from unmanaged pricing dispersion. By implementing rigorous discount governance and value-based pricing architectures, we typically identify 2-4% of immediately addressable revenue leakage.

2. The Cost Structure Mandate

Structural costs often bloat during long holding periods. Our zero-based budgeting approach realigns SG&A with the investment thesis, ensuring every dollar spent contributes to enterprise value.

3. Integration Velocity

The value of M&A is often lost in slow integration. We advocate for a "clean room" approach to pre-close planning, allowing for Day 1 execution of synergy realization plans.

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Vinay Prathy

Managing Partner

Sponsor-facing execution architecture across pricing, operating model, and finance control systems.

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