Negotiation is an art that has evolved significantly in the business world, especially in the dynamic private equity (PE) sector. Over time, investors have perfected a variety of tactics to obtain favorable conditions in their transactions. However, beyond the purchase price, the real challenge lies in generating sustainable value within the acquired companies.
Mijael “Mike” Attias, CEO of Merak Group and Private Equity expert, has identified three underutilized strategies that can make a difference in investment performance. These methodologies not only maximize financial value, but also strengthen the operational structure and long-term impact of the companies in which they invest.
3 key strategies in Private Equity according to Mijael Attias
1. ESG: more than a trend, a competitive advantage
ESG (environmental, social and governance) criteria are no longer an option, they have become a strategic necessity in private equity. According to Mijael Attias, companies with a strong commitment to sustainability not only attract more investors, but also achieve greater long-term resilience.
How can ESG be applied in private equity?
- Evaluate ESG factors through due diligence, identifying hidden risks and opportunities for improvement.
- Implement sustainability and governance practices to strengthen competitiveness.
- Align operations with ESG standards, increasing the value of the investment and its social impact.
This approach not only mitigates risk, but also strengthens the company’s reputation and improves its financial results.
2. Artificial Intelligence: a revolution in due diligence
Data analysis has changed the way private equity transactions are carried out. Artificial intelligence (AI) has become a key tool for evaluating risks and opportunities with unprecedented accuracy.
Benefits of AI in private equity:
- Automation of data analysis on large volumes of information.
- Identification of patterns and correlations imperceptible to traditional methods.
- Advanced evaluation of the capacity of the management teams to execute.
According to Attias, AI optimizes decision-making and allows for more sophisticated investment analysis, facilitating more accurate market predictions.
3. Post-acquisition growth: the key to long-term success
For Attias, value creation in a private equity transaction does not end with the purchase of the company, but only begins.
Post-acquisition strategies that make the difference:
- Development of new products and services to diversify revenue streams.
- Expansion into new markets, maximizing growth potential.
- Operational optimization through efficiency and restructuring strategies.
Instead of focusing solely on financial restructuring, focusing on business growth can generate significantly higher returns.
Mijael Attias’ vision: innovation and value in Private Equity
The strategies identified by Mijael Attias — the integration of ESG, the use of AI and investment in post-acquisition growth — offer a key competitive advantage in today’s Private Equity.
By adopting a proactive and innovative approach, investors can maximize the value of their assets and generate a positive impact on the business ecosystem.
Learning from influential leaders in the sector, such as Attias, provides key strategic tools for optimizing investment decisions and improving the performance of private equity funds.