Three things on why pricing matters for private equity investors
In this short video, Pricing Partner, Patric Kirchner shares three things private equity investors should understand about why pricing matters.
Pricing compounds enterprise value. Changes in price typically have a larger and more immediate impact on EBITDA than volume growth or cost reduction. Over time, disciplined pricing capabilities can also make businesses more resilient, supporting stronger exit multiples.
Discounts are often treated as simple price cuts, but they are better understood as customer investments. When managed deliberately, they can build loyalty and lifetime value. When they are not, they quietly erode margin. For investors, the question is whether discounts are being deployed with intent or by default.
Pricing initiatives also tend to deliver some of the highest returns in private equity. Even small improvements can translate into disproportionate EBITDA impact, making pricing one of the most direct levers for value creation.
If you would like to discuss what this means in practice, please get in touch.
