We have sat in a great many renewal conversations. The dynamic is almost always the same. The vendor delivered. Service level agreements have been met. And yet the conversation is about price. Not about value. Not about outcomes.
Insights
Outcome Engineering, in practice
Short pieces on evidencing value creation in service businesses. One idea at a time, written for operating partners and the CEOs they back.
The PE Operating Partner Is Now Worth 47% Of The Return. But How Will You Evidence The Impact?
But How Will You Evidence The Impact?
For PE-Backed Businesses: 65% Of Value Creation Plans Fail
The Ones That Do Not, Re-Rate The Multiple By Up To 60%. Why?
The Number That Decides What Your Business Is Worth
There is one number in your business that determines everything else at exit.
The Gap After Ode
Last week Anthropic, Blackstone, Hellman & Friedman and Goldman Sachs officially launched a company called Ode.
The £1.4 Trillion Shift That Decides What Your Business Is Worth
$1.5 trillion. That is the size of the Services-as-Software market HFS Research expects by 2035.
$5 Trillion Is Moving. Here’s the Engine That Closes the Gap
HFS and J.P. Morgan size the Services-as-Software shift at $1.5 to $5 trillion. That money is moving regardless of what any single business does about it.
30-50% EV Uplift: The Outcome-Led Premium
Markets are challenging for PE. Holding periods have moved past six years, the longest on record, the number of PE-backed businesses in Europe is now 2.3 times those on the public market, and the IPO window is almost shut, figures PitchBook reported last week.
$60 Billion All-Stock. The Value Creation This Unlocks
$60 billion. All stock. The largest acquisition of a venture-backed startup in history.
$1.5 trillion. Services-as-Software. The Shift You Cannot See. The Moat It Creates.
HFS coined the name for it. J.P. Morgan calls it AI’s third phase. Business services becoming software.