Private Equity, G&A, and Operating Income

Is your firm under-utilizing G&A functions as strategic assets
that could be increasing operating income? This under-utilization
provides opportunities for private equity firms to create value
when they take control. It's this simple: the purpose of HR, IT
and Quality functions is to increase operating income. When
these G&A-driven increases in operating income are greater
than the cost of capital needed to fund these functions and their
projects, your firm will be less attractive to private equity, and
more attractive to public shareholders.