Services That Matter
Why Profitable Efficient Growth (PEG)?
A powerful strategy for growing businesses focused on building sustainable, resilient, and high-performing companies without compromising cash flow or values.
Build Real, Enduring Value
PEG vs GAACPEG prioritizes profitability alongside growth, ensuring that expansion actually strengthens the business rather than weakening it. This leads to stronger fundamentals, healthier margins, and scalable success.
Check out EY's point-of-view on profitable efficient growth benefits versus a growth-at-all-costs mindset:
Sustainable Growth Reduces Burnout and Risk
HubSpotStartups and SMBs that balance growth with cash efficiency are more likely to survive downturns and funding gaps.
HubSpot found that 82% of unsuccessful small businesses failed because they didn't fully grasp the commercial outlook of the business and failed to properly manage cash flow,
Command Higher Valuations
Adam Street PartnersThe strategic playbook for firms has evolved. Profitable Efficient Growth (PEG) is increasingly prioritized over the traditional Growth-at-all-Costs (GAAC) approach. In today’s market, companies that demonstrate sustained, capital-efficient growth—particularly in sales, operations, and profitability—are more likely to command higher valuation multiples.
Adams Street Partners emphasize efficient growth (measured through strong unit economics, sales efficiency, and capital discipline) is a major driver of premium valuations, particularly in large addressable markets. Companies that show a path to sustainable profitability are more likely to command higher and resilient valuations.
Strategic Freedom
HBRProfitability provides businesses with greater autonomy and strategic options. Research from Harvard Business School indicates that approximately 75% of venture-backed startups fail to return investors' capital, highlighting the importance of building a profitable and efficient business model to ensure long-term success.