Under the Microscope: Private vs Public Company Operating Metrics for US Companies

Analyzing financial and operating metrics provides insights into private equity markets and the process by which private equity managers execute their strategy. This annual report is derived from data on and analyses of approximately 6,700 US portfolio company investments acquired by PE firms from 2000 through 2021. This analysis includes our observations on key metrics including purchase price multiples, leverage multiples, revenue growth, earnings (EBITDA) growth, and earnings (EBITDA) margins. Our analysis allows for the comparison of private and public companies across time, industry sector and company size. We also include analysis of approximately 1,800 realized private equity investments to assess the impact on growth, leverage, and valuations over the hold period of a company investment. The data illuminate the key levers and value drivers in private equity, as well as the risks and returns of private equity versus public equity.

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