Operational Alpha in North America: Closing the Diligence-to-Execution Gap

NEW YORK, NY (May 28, 2026) — Alvarez & Marsal’s Private Equity Performance Improvement (PEPI) North America team today released its 2026 Value Creation Survey Report, “Operational Alpha in North America: Closing the Diligence-to-Execution Gap,” based on input from 100 private equity investors, operating partners and PE-backed executives across North America.

The findings reveal a widening gap between diligence assumptions and operational execution.   As deal activity returns, outperformers are differentiating through execution and building repeatable operating mechanisms that translate value creation plans into measurable delivery earlier in the hold period.

Select findings:

• 89% of respondents describe the North America deal market as moderately or highly active, yet the survey points to a widening gap between diligence assumptions and on-the-ground execution.
• 41% report realizing below 75% of planned value creation over the last 12 months, prolonged hold periods magnify the cost of execution misses.     
• 73% expect AI to increase portfolio value over the next 12 months, yet only 8% describe their firm as “leading” highlighting a major opportunity to move from experimentation and pilots to repeatable impact.
• Most respondents say embedding value creation planning earlier in diligence would improve outcomes but fewer than one-quarter do so pre-LOI, leaving actionable upside for firms that standardize playbooks and KPIs.

“Private equity transactions may be increasing, but exit windows are still narrower than headline activity suggests,” said Markus Lahrkamp, Managing Director and Leader of A&M PEPI’s Commercial and Operations Service. “In this environment, firms that outperform will be the ones that close the gap between diligence and execution by building repeatable operating mechanisms, protecting management bandwidth and moving from value creation plans to measurable delivery earlier in the hold period.”

“AI is already present across portfolios, but most firms are still early in turning adoption into repeatable EBITDA impact,” said Anil Kumar, Managing Director, A&M PEPI North America. “The near-term opportunity is to move from pilots to embedded operating routines, starting where outcomes are measurable and building the talent, data quality and process maturity required to scale.”

The full report details where value creation plans most often fall short, how buyers evaluate proof of performance, and the execution architecture that distinguishes repeatable outperformers.

Read the Report

About Alvarez & Marsal

Founded in 1983, Alvarez & Marsal is a leading global professional services firm. Renowned for its leadership, action, and results, Alvarez & Marsal provides advisory, business performance improvement, and turnaround management services, delivering practical solutions to address clients' unique challenges. With a worldwide network of experienced operators, world-class consultants, former regulators, and industry authorities, Alvarez & Marsal helps corporates, boards, private equity firms, law firms, and government agencies drive transformation, mitigate risk, and unlock value at every stage of growth. To learn more, visit: AlvarezandMarsal.com.

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