Private equity has a thousand ways of distracting itself.

We talk about “synergies.”
We talk about “platform plays.”
We talk about “digital transformation.”
We talk about “growth at scale.”

But the scoreboard hasn’t changed in 40 years: enterprise value is a direct function of EBITDA.

Most of the legendary PE exits weren’t built on wild revenue growth. They were built on disciplined operating work......pricing power, gross margin expansion, SG&A leverage, working capital management. The unglamorous stuff.

Look at the numbers. Over the last decade, the median revenue growth for buyout-backed companies has been ~6–7% annually. Nothing heroic. But the top-quartile funds weren’t winning because of growth, they were winning because they consistently improved EBITDA margins by 300–800 basis points. That’s what created the multiple expansion. That’s what juiced the IRRs.

And yet, inside boardrooms and pitch decks, we still hear a lot more about TAM slides than about cash conversion cycles.

The irony is everyone knows it. Exit valuations don’t get underwritten on “brand value” or “strategic positioning.” They get underwritten on trailing EBITDA and the confidence a buyer has that those margins will stick.

You don’t distribute carry on vibes. You don’t return capital on narratives. You only win on the number that pays: EBITDA.

It’s about EBITDA, stupid.