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Why "cash culture" is a critical lever in today's PE climate
Nick Boaro and Sven Braun of the EY Transaction Advisory Services and Working Capital Group explain why freeing cash from working capital can allow PE to prolong sustainability, realize value sooner and invest earlier.
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Four reasons why a PE-backed company would want to optimize cash flow now include:
Up to 7% of sales can be unlocked and released quickly.
Unlocking cash is the cheapest source of liquidity.
Companies with optionality are in a stronger position to reinvest for growth.
A successful outcome in one portfolio company can…
The skinny
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