If your revenue growth projection number was built from averages and an assumed conversion rate, it is a value pool, not a value creation plan. The gap between the two is where private equity leaves money on the table.
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Notes, commentary and working perspectives on customer base intelligence and private equity value creation.
The published answers are targets. This is what deals actually returned across 15,502 private equity investments, and what the number depends on.
Read article →A pan-African fintech, 31,167 transacting customers, $9.54m in annual fees, growing at 561% year on year and preparing to raise capital. Keystone IQ was commissioned to establish what that growth was actually built on. This is what the Revenue Quality Architecture™ found in a fintech customer base, and what it changed about the investment conversation.
Read article →Standard commercial due diligence reads the P&L and asks whether revenue is growing. Keystone IQ’s Revenue Quality Architecture™ asks a different question: is the customer behaviour underneath it durable? A recent European ecommerce engagement shows what that distinction looks like in practice, and what it surfaces that aggregate reporting cannot.
Read article →Keystone IQ, an operator-grade customer-base intelligence firm for private equity deal teams, launches today with evidence, not a promise: an anonymised analysis of a real customer base, and the implications for three key deal moments: entry, hold and exit.
Read article →A target reports 32% customer growth, revenue up 12%, churn contained — yet eighteen months into the hold the base looks materially worse. The gap between revenue growth and revenue quality is the difference PE deal teams pay at exit.
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