Cloud Economics for Private Equity
Translating cloud infrastructure into EBITDA impact and valuation adjustments
PE Deal Advisory
Cloud economics in private equity requires more than technical expertise or cost optimization skills. It demands the ability to translate technical findings into financial impact—EBITDA adjustments, valuation changes, and deal pricing decisions. My approach combines deep cloud infrastructure knowledge with understanding of PE deal economics, hold periods, and exit multiples.
Unlike general tech diligence firms that provide surface-level cloud analysis, or cost consultants who work post-acquisition, I specialize in cloud economics across the entire PE deal lifecycle. At AWS, working with hundreds of PE-backed companies provided practical benchmarks, realistic expectations, and deep insight into what cloud providers can actually deliver and how to leverage portfolio scale.
From Pre-LOI Through Exit
Pre-LOI Screening & Due Diligence
Evaluating cloud economics before letter of intent and during diligence. Technology Risk Assessment framework translates findings to valuation multiples. Waste identification with confidence levels (90% for zombie resources, 70% for right-sizing, 50% for architectural changes) informs EBITDA adjustments and deal pricing.
Economic Translation
Translating technical findings into financial impact—EBITDA adjustments, valuation changes, and deal pricing decisions. Risk-adjusted ROI calculations prioritize opportunities. Experience across hundreds of PE-backed companies provides context for 'normal' versus 'red flag' findings.
Integration & Value Creation
Integration complexity scoring for multi-company cloud consolidation. Portfolio-wide optimization strategies grounded in empirical research. Focus on improvements that enhance EBITDA and exit valuation, not just cost reduction. Clear timelines and confidence intervals for value creation plans.
Exit Preparation
Optimizing cloud economics to maximize exit valuation. Preparing infrastructure for buyer diligence. Demonstrating optimization discipline and unit economics improvement that support premium multiples. Separation and carve-out economics for divestitures.
PE-Backed Company Focus
At AWS, working across hundreds of PE-backed companies in four primary sectors provided benchmarks specific to PE-backed companies, not general cloud users — accurate context for evaluating targets and portfolio companies.
SaaS Companies
Software-as-a-Service companies where cloud infrastructure represents primary cost of goods sold. Focus on unit economics (cost per user, cost per transaction) and optimization that improves gross margins without sacrificing growth.
Fintech
Financial technology companies with complex compliance requirements and high transaction volumes. Balancing security, performance, and cost efficiency while maintaining regulatory compliance and audit readiness.
Healthcare Technology
Healthcare tech companies navigating HIPAA compliance, data residency requirements, and integration with legacy systems. Optimizing cloud economics while maintaining security and compliance posture.
E-commerce & Retail
E-commerce platforms and retail technology companies with seasonal traffic patterns and variable workloads. Right-sizing for actual demand patterns and optimizing for peak efficiency without over-provisioning.
Cloud Economics for Private Equity
Author and speaker on translating cloud infrastructure into financial impact for PE deals.
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