The PE CxO Report · The Adaptation Premium
Margin improvement now carries the deal.
The lever that always lived on slide 27 of the value creation plan is now on slide 3.
Alvarez & Marsal's 2026 European Private Equity Value Creation Report analyzed 240 exits since 2013. The headline number: EBITDA margin expansion accounted for 51% of EBITDA growth at exit for companies sold in 2025, up from 21.5% before 2023.
Revenue growth still matters, but it no longer carries the deal.
Sync-Align view
Sure, it's European data — but the reality is margin expansion can't be commanded. It's earned through operating cadence. If the sponsor is buying you for what you'll do to margins, your operating plan has to read like a margin plan, not a growth plan.