5min chapter

Dry Powder: The Private Equity Podcast cover image

Integrated Due Diligence: The Moving Picture

Dry Powder: The Private Equity Podcast

CHAPTER

The Profit Cube: How to Optimize Your Business

The profit cube is a tool that can produce real insights on a tactical basis for our clients. There are other tools actually that we've used that have a more strategic view of what an overall asset should be earning in terms of profitability. If you apply a lot of new tools and techniques, it still comes back to understanding what is the strategic position of the asset. And if it's going to earn outsized margins compared to the predictive profitability of the normative band, then there better be a damn good reason why.

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