Private Equity
Private equity in 2026: show the operating plan behind the valuation
17 October 2026 · FinAnalytic Editorial · 2 min read
“We will sell at a higher multiple” is easy to put in a spreadsheet. It is a fragile foundation for an investment case.
What the latest report says
Bain’s Global Private Equity Report 2026 describes a recovery in 2025 deal and exit values that was concentrated in large transactions. Its discussion also stresses operating improvement in a tougher financing and valuation environment.
Those are global findings, not a measurement of India’s market. Our takeaway for a business preparing for investment is straightforward: make the operating plan as clear as the growth story.
Explain where the improvement comes from
Will margins improve through pricing, procurement, product mix or capacity utilisation? For each lever, identify the starting position, evidence, cost, owner and time required.
“Better sales execution” needs more detail. Which customer segment, which sales process and what change in conversion?
Check whether growth produces cash
A growing order book can still create a cash squeeze if receivables and inventory rise faster than collections. Put working-capital assumptions beside revenue assumptions.
Then test what happens if customers pay later or expansion takes longer than planned.
Prepare for a slower exit
An IPO is one possible route. A strategic sale or a longer holding period may produce a different outcome. The investment case should show how it behaves if the expected exit is delayed.
A credible plan can survive a difficult question without needing a more optimistic spreadsheet.
Sources & further reading
General business commentary; not a recommendation to invest in any fund or transaction.