The Gottschalg Analytics PE Value Creator Score

How to demonstrate in an objective and data-driven fashion to founders, top executives and employees of a target company that you are the best possible acquirer for their business?

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The Problem We Are Solving

Sell-side stakeholders of a possible PE transaction increasingly realize that good PE firms bring more than just money to the table and often-times have a choice between different exit options. In the process, they ask relevant questions such as:

Is the PE bidder truly a “best in class” PE Firm?

Will the business under their ownership be in a “safe pair of hands” in terms of risk in general (risk mitigation) and downturn protection in particular?

Is the PE bidder a proven “Company Builder” rather than a “Value Extractor”?

Is this deal in a “sweet spot” for this PE bidder?

Are they dealing with the best of the best in terms of the responsible investment managers?

How It Works

The Gottschalg Analytics team has over 15 years of experience in analysing PE track records and worked for eight of the largest ten and 33 of the largest 100 PE houses worldwide.
To calculate the PE Value Creator Score for your next deal, we require standardized data of the type that is typically shared with LPs in the fundraising process: fund-level net Cash Flows, deal-level gross Cash Flows, company financials at acquisition and at exit, as well as the key characteristics of each past investment and the proposed deal: industry sector, geography and enterprise value.
We also need to identify which of the past deals were led by the potential investment managers of the proposed deal.
Based on this data, we perform a standardized and in-depth analysis of our five dimensions and assign a “Value Creator Star” for each dimension in which the GP passes the bar as a top value creator.

The GA Value Creator score is based on a 5-dimensional quantitative assessment of a GP’s investment track record, considering aspects such as absolute and relative performance at the fund- and the deal-level, sources of value, experience by industry sector, geography and deal-size category, zooming in from the overall PE Firm to the team of responsible investment managers of the proposed deal.

Each of the five dimensions provides a data-driven and objective answer to the above questions, enabling GPs to demonstrate to founders, top executives and employees of a target company that you are the best possible acquirer for their business.