Is "Value Creation" in mid-market PE just a myth at this point?
I'm looking to enter the mid-market PE space, and from everyone I'm reading, every firm claims they generate alpha through 'operational improvements' and 'value creation playbooks'.
But looking closely at the actual tech stacks and strategies, it seems like 90% of it is just standard multiple expansion, aggressively cutting overhead, and forcing a basic CRM implementation onto the portfolio companies.
Are there actually any firms out there doing sophisticated data-driven or algorithmic things to find operational alpha post-acquisition? Or is 'value creation' just a buzzword GPs use to appease LPs while they rely on basic financial engineering?