PE firms are good at financial engineering. The ones that outperform will master commercial engineering too.

Private equity firms are exceptionally good at financial engineering.

The ones that outperform over the next decade will be the ones who get equally good at commercial engineering.

I've worked with PE-backed companies across workforce technology, SaaS, and enterprise software. The value creation playbook is well understood on the cost side — headcount optimization, procurement, operational efficiency.

The revenue side is harder and less systematic. And that's where the real upside sits.

Here's what I see the best PE operating partners focusing on right now:

GTM professionalization. Most founder-led businesses have never built a real enterprise sales motion. Fixing this in the first 18 months post-acquisition creates disproportionate value.

Pricing discipline. Portfolio companies routinely undercharge. A structured pricing review often reveals 15-30% revenue upside with no additional cost.

AI commercialization readiness. Every portfolio company is being asked about AI. Few have a credible answer. The ones that develop one early will command premium multiples at exit.

The firms that treat commercial transformation with the same rigor as financial transformation will win.