If you’ve worked in or around private equity (PE) companies, you’ll know it’s all about value creation. PE firms make their money by buying businesses, increasing their value, and selling them at a premium. They’re experts at creating value under pressure — so their approach is worth understanding. In this post, we’ll look at the private equity lifecycle and take a deep dive into PE value creation sprints.
PE Lifecycle
Broadly, there are four phases in the PE ownership cycle:
- Setup (Year 0–1): Immediately after purchase; stabilisation and 100-day plans
- Scale (Year 1–2.5): Growth is delegated to local management
- Squeeze (18–24 months pre-exit): Performance push — this is where sprints often kick in
- Sell (last 6–12 months): Exit readiness, financial cleanup, story packaging
These four phases follow a recognisable arc. In Setup, the priority is stability — sorting leadership, calming operations, and laying out the 100-day plan. Once that’s done, Scale begins. Growth is expected, but largely left to the existing team. The PE firm watches but doesn’t always intervene.
Then comes Squeeze — the phase where pressure ramps up. With the exit window in sight, performance matters more than promises. This is when value creation sprints often begin: intense bursts of activity to drive profitability, clean up execution, and make the business shine.
Finally, Sell is all about polish. Financials are scrubbed, the story is sharpened, and the business is packaged for maximum appeal. The value needs to be visible — and defensible — to whoever’s buying next.
If you’re working in a portfolio company and suddenly feel a rush of board attention and find yourself attending a bunch operating partner workshops — odds are, you’re in Squeeze or Sell mode. In one company I worked with, the North American PE owners started flying to London every few weeks. That was Squeeze. When they were showing up every week, I knew we’d entered Sell.
Note: Setup, Scale, Squeeze, and Sell are my own shorthand for the phases of a typical PE lifecycle. You’ll hear other names depending on the firm or context. For example:
- Setup: Post-Acquisition Stabilisation, 100-Day Plan, Onboarding Phase, Foundation Phase
- Scale: Runway, Passive Growth, Monitor & Support, Stewardship Phase, Value Tracking
- Squeeze: Pre-exit, Value Acceleration, Performance Uplift, Value Realisation Push, Sprint Window
- Sell: Exit Preparation, Exit Readiness, Packaging Phase, Go-to-Market Prep
Value Creation in the PE Lifecycle
Value creation happens in every phase of the PE lifecycle — Setup, Scale, Squeeze, and Sell. But it doesn’t always look like a hands-on transformation.
Hands-off Mode
In fact, most of the time, PE firms operate in hands-off mode — and that’s by design. Many run a classic portfolio management model: they back strong local teams, review board packs, track KPIs monthly, and stay out of the weeds. The executive team is responsible for delivery. As long as the business is performing, PE stays in the background.
This light-touch approach only holds in certain circumstances, i.e. when:
- Performance is on track
- The investment thesis is intact
- The exit horizon is still a way off
- The CEO and leadership team are trusted
Hands-on Mode
The hands-on mode is a different beast. Now you’ve got an operating partner parked in HQ, daily check-ins, accounts under the microscope, and a CEO spending more time justifying decisions than making them. It’s high cost, high friction — so PE firms don’t flip that switch lightly. There’s always a trigger. The usual suspects are:
- Post-acquisition integration – aligning a bolt-on with the core business (typically during Setup)
- Leadership change – a new CEO or exec shake-up prompts a reset (Setup or Squeeze)
- Performance dip – margins slipping, growth stalling, churn rising (watched constantly, especially during Scale)
- Trapped value spotted – underused pricing levers, bloated ops, legacy tech (can happen anytime)
- Exit planning begins – time to polish the story, sharpen EBITDA, and get due diligence-ready (Squeeze and Sell)
When that happens, the gloves come off — and a Value Creation Sprint kicks in. High focus. High speed. No passengers. No mercy.
What Is a PE Value Creation Sprint?
A Value Creation Sprint is a fast, focused way to concentrate effort, drive visible improvement, and get back on track. They’re strategic weapons — used sparingly, but decisively. When a PE firm steps in, they expect quick progress and measurable impact.
This isn’t a long-term transformation programme. It’s not a wish list of ideas. It’s a short, sharp intervention designed to unlock, activate, and realise enterprise value — fast. Typically within 60 to 90 days. (That said, multiple sprints can be sequenced over time to drive sustained progress.)
A PE sprint usually runs through four phases:
1. Value Check — A rapid diagnostic to uncover where value is being created, blocked, or left on the table.
Outcome: A clear picture of current performance and 3–5 priority areas to unlock more.
2. Value Blueprint — Translating insight into a 90-day action plan focused on high-impact, feasible value levers.
Outcome: A blueprint that’s credible, focused, and ready to run.
3. Value Transformation — Executing the blueprint — making the changes that shift how the business performs.
Outcome: Visible progress, faster delivery, and momentum that sticks.
4. Value Realisation — Tracking results, scaling what works, and positioning the business for long-term success or monetisation.
Outcome: Value delivered, tracked, and ready for scale or reinvestment.
Sound intense? It is. But that’s the point. PE sprints aren’t run for fun — they’re run because the clock is ticking, and value needs to move.
What Makes PE Sprints Different?
The core components aren’t unique — you’ll find similar structures in any good transformation effort. But PE sprints have sharper teeth. Here’s how:
- Pace – Decisions are faster. Progress is weekly. Waiting isn’t a strategy.
- Discipline – Every initiative has a number attached: EBITDA impact, cash flow, margin lift.
- Ownership – Leadership teams are often incentivised directly; investors are watching closely.
- Focus – Non-essential work dies quickly. No vanity projects. No PowerPoint for PowerPoint’s sake.
- Exit logic – Every action is connected to increasing valuation or attractiveness to buyers.
This isn’t just about doing more — it’s about doing only what moves the needle. Ruthlessly.
What Can Non-PE Companies Learn?
The biggest lesson? Urgency without panic.
You don’t need a boardroom full of PE execs to act like performance matters. Every business can adopt a sprint mindset:
- Be clear – Know your most important value levers.
- Be focused – Pick a few priorities and go all-in.
- Be measured – Track value created vs effort spent.
- Be bold – Don’t aim for marginal gains. Aim for transformation that sticks.
Value Creation Sprints force clarity. They expose noise. They move real numbers, not just sentiment.
Final Word
If you’re entering a squeeze, gearing up to sell, or just sick of slow progress — a value creation sprint mindset can change your trajectory. It’s not just a PE thing. It’s a high-performance thing.
And if you want help shaping one? That’s what I do – reach out.