Bain & Company: Multiple expansion masks the fact most PE deals fell short of projections

Bain & Company in its analysis of private equity deals invested in the wake of the financial crisis saw multiple expansion as a driver of value creation, falling short of projected margins.

The report, “Integrating Due Diligence to Build Lasting Value, shows that private equity firms are missing the mark on the margin projections because of siloed due diligence processes.

Bain & Company’s review of 65 mature buyouts invested since the financial crisis found that 71% of deals fell short by an average of 330 basis points below the deal model forecast. The shortcoming . . .

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