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4 Types of Budgeting Methods and their Pros and Cons

The Finance Weekly

Budgeting —it’s a process that every organization needs, yet it can look vastly different depending on which approach you take. With so many options out there, choosing the right budgeting method can feel overwhelming. With so many options out there, choosing the right budgeting method can feel overwhelming.

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Why Margin Expansion Is the New Growth Strategy for Private Equity Firms in 2025

E78 Partners

They reduce SG&A waste, capture operational efficiencies, and grow EBITDA through disciplined cost management and integrated platform operations. They centralize finance and HR, modernize IT systems , renegotiate vendor agreements, and apply zero-based budgeting to evaluate spend from the ground up. They optimize them.

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Technology as a Value Creator for Private Equity Portfolio Companies

E78 Partners

IT Cost Optimization: Streamlining for Efficiency In recent years, technology budgets have risen significantly, making cost optimization a critical focus for private equity firms. E78s focus on IT cost optimization, M&A integration, and digital transformation amplifies value creation.

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Maximize Growth and Profitability Through Strategic Budget Planning

E78 Partners

Under these pressures, one aspect often underestimated is the power of strategic budget planning. It’s not just about managing numbers—it’s about aligning financial strategies with business goals to unlock value at every stage of the investment cycle.

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Maximize Growth and Profitability Through Strategic Budget Planning

E78 Partners

Download our free budget planning checklist For private equity firms, success isn’t just about acquiring companies; it’s about transforming them. The mandate is clear: rapidly create value, manage risk, and prepare for a profitable exit.

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The Mentoring Round | Chikako Tyler, CFO, California Bank & Trust

CFO Thought Leader

However, after managing a sales team, she shifted her perspective, now seeing expenses as investments with potential ROI. This change has led her to prioritize strategic spending that drives revenue growth, moving beyond budget constraints to foster more dynamic and forward-looking financial management.

CFO
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From Necessary Evil to Mission Fuel: The Strategic Role of Nonprofit Financial Statements

The Charity CFO

This information is crucial for financial planning, budgeting, and identifying potential areas of revenue growth. Evaluating Expenses : Evaluate the expenses incurred by the nonprofit, such as program expenses, administrative costs, fundraising expenses, etc. cash, investments, receivables) and liabilities (e.g.,