In finance, weâre wired to look outwardâchasing the next deal, the next merger, the next growth story. But what if the biggest opportunity isnât âout thereâ? What if itâs sitting quietly inside your businessâor your clientâsâwaiting to be activated?
In a recent talk with financial services professionals, I challenged that M&A reflexâand offered a smarter, more strategic approach: adopt a private equity (PE) mindset to drive real, sustainable value from within.
This isnât about financial engineering. This is about operational discipline, strategic clarity, and cultural alignmentâthe levers top-tier PE firms pull every day to create enterprise value. The best part? You can use these tools without a deal, a board shakeup, or a capital injection.
Letâs dig in.
đĄ Why Internal Value Creation Beats M&A (Most of the Time)
70â90% of M&A deals fail to create value. Many destroy it.
So why are we still acting like growth is something you buy?
External growth is expensive, risky, and hard to control. Internal value creation? Itâs faster, more capital-efficient, and often overlooked.
Whether you're running a company or advising one, now is the time to recession-proof by optimizing what you already own. The smartest businesses today are shifting from âbuyâ to âbuild.â
Itâs time to shift focusâfrom growth at all costs to value on purpose.
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đ The Value Creation Playbook: A Strategic Framework in 3 Pillars
Forget the old-school play of slashing costs and piling on debt. This framework is about increasing the intrinsic value of your businessâjust like top-tier PE firms do with their portfolio companies.
1. Strategic Clarity
The biggest unlock for value is focus.
Know your core. Double down on what works. Exit the distractions.
⥠Identify what truly drives value in your industryârecurring revenue? IP? Customer retention?
⥠Get crystal clear on product profitability, customer segmentation, and complexity costs.
⥠Align your resources accordingly.
â Takeaway: Value starts with knowing what truly drives it. Align capital and effort there.
đ§ Pro tip: Strategy is only powerful when it's specific. A clear 80/20 view will do more than any rebrand or new hire.
2. Operational Excellence
This is not about slashing costs. Itâs about doing more with what you already have.
⥠Eliminate waste (process bloat, excess inventory, underutilized systems)
⥠Invest in automation, digitization, and lean operations
⥠Leverage AI where it actually matters (not just for PR)
â Takeaway: You canât cut your way to greatness, but you can fund growth by plugging the leaks.
đ§ Pro tip: Value creation doesnât need to be revolutionary. It needs to be deliberate.
3. Cultural Alignment
Culture is not a âsoftâ topic. Itâs a hard driver of execution.
⥠Are your people clear on priorities?
⥠Are they rewarded for outcomes?
⥠Are they continuously improving?
If the answer is no, no amount of strategy will save you. You donât just need the right roadmap. You need the right drivers.
â Takeaway: Strategy sets the direction. Culture determines whether you get thereâor stall out halfway.
đ§ Pro tip: Embed accountability at every level. Align incentives with value creation, not just activity. If no one owns it, it doesnât get done.
đ§° Think Like PEâWithout Selling to PE
Private equity isnât just about capital. Itâs about discipline.
Imagine bringing PE toolsâ100-day plans, KPI dashboards, pricing strategyâto your business or client portfolio. No deal required. Just the mindset and the method.
You donât need to sell your company or take an investor to operate like a world-class firm.
This is what top PE firms bring to the table post-deal. But why wait? Use the playbook nowâwithout giving up equity.
đ In This Market, Internal Value Creation Isnât a Nice-to-Have. Itâs Survival.
With macro headwinds mountingâhigher rates, inflation, geopolitical instabilityâthe margin for error is thin. Businesses need to move now to become more resilient, more profitable, and more focused.
So Iâll leave you with one question:
đŹ What value are you leaving on the table today?
Because thatâs where your next 20% upside lies.
If youâre looking for an advisor, speaker, or board member who can bring a practical value creation lens to your company or clientsâletâs talk. You can connect with me directly or reach out through my speaker agent, Shari Storm.
Letâs build value on purpose.
Peggy Van de Plassche is a seasoned advisor with over 20 years of experience in financial services, healthcare, and technology. She specializes in guiding boards and C-suite executives through transformational change, leveraging technology and capital allocation to drive growth and innovation. A founding board member of Invest in Canada, Peggy also brings unique expertise in navigating complex issues and fostering public-private partnershipsâkey elements in shaping the Future of Business. Her skill set includes strategic leadership, capital allocation, transaction advisory, technology integration, and governance. Notable clients include BMO, CI Financial, HOOPP, OMERS, GreenShield Canada, Nicola Wealth, and Power Financial. For more information, visit peggyvandeplassche.com.