Private growth potential

Bottom-line performance improvement is the key to value creation for a private equity investor. Even before doing due diligence for a potential acquisition, private equity practitioners establish hypotheses on how to create value. They will usually focus on three factors organic growth potential, portfolio streamlining/add-on acquisitions, and cost improvement. 

There is a potential for growth of the rubber railroad crossing market. There are 185,800 public railroad crossings and at least as many private ones in the U.S. Less than 2 percent have rubber crossings. A typical railroad crossing consumes about 350 pounds of rubber per track foot. 

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